Islamic Banking and the concept of economic development: The Nigerian perspective

By Muhammad Babayo (kudos974@yahoo.co.uk)

Socio-economic justice and equitable distribution of income are among the paramount goals of an Islamic economy, and these goals must be reflected in an Islamic financial system. There are various institutions and structures Islam has installed through which income and wealth can be distributed to fulfill the basic needs for all in society. Among others Zakah, Awqaf and Qard Hassan have played an important role in the past in increasing the welfare of society and mitigating poverty. The social objectives of Islamic financial system can be fulfilled if these important traditional Islamic institutions are integrated into the contemporary financial sector.