Challenges of the Application of Islamic Economic System in Business Activities among Muslims in Northwestern Nigeria and the Way-out

Abstract

Many business activities revolve mostly on usury and other forms of exploitation that retarded the progress of most businesses and was responsible for their collapse, which may not be far from the poor and corrupt economic policies adopted and as a result of some challenges related to the application of Islamic economic system in Northwestern Nigeria. Thus, the research intended to reveals the relevance of Islamic economic system to the promotion of business activities, assess the challenges of application of Islamic economic system and proffer way out.  The research elucidated the concept of Islamic economic system, and its principles. Also, concept of business activities and its ethics in Islam was discussed. In view of the research objectives, three states were selected, namely: Kano, Kaduna and Zamfara; where 650 questionnaires were distributed to business men, farmers, artisans, bankers, contractors and Islamic scholars. The finding reveals that, many Muslims in Northwestern Nigeria are careless of having the necessary Islamic knowledge about a kind of transaction before going into it. Thus, Islamic economic system and business ethics, does not always determine business activities among them. Greediness and eagerness of some Muslims to get rich, lack of orientation and proper understanding of Islamic economic system, dominant of secular system in markets and financial institutions pose challenges to the application of Islamic economic system in business activities. The study therefore recommends that, Muslims should always seek for the ruling of an action before going into it and fear Allah by avoiding any unlawful transaction. The government, Muslims organizations and wealthy individual Muslims in the society should tackle the challenges of the application of Islamic economic system in business activities through supportive policies, adoption of Shari’ah compliant financial institutions and practicing of Islamic teaching as the case may be. Islamic scholars should broadcast more on the need for fully embracement of Islamic economic system at different levels and its ability of solving many contemporary socioeconomic problems, while revealing the consequences of noncompliance with Islamic economic system in business activities among Muslims in Northwestern Nigeria.