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Institute makes case for Islamic finance, inducts 10 executive members

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As part of efforts towards building capacity and promoting global standard Islamic finance practices, Nigeria’s pioneer Islamic Finance training institution, the Institute of Islamic Finance Professionals (IIFP) has hosted its 2022 bi-annual executive membership training.

The Institute’s 2022 bi-annual executive membership training, which was held in Lagos witnessed induction of ten members.

The induction was well-attended by scholars, experts, stakeholders, facilitators, as well as alumni members of the executive membership training.

The training also featured facilitators from the non-interest finance industry, which include Mrs. Oyindamaola Dada, MD/CEO, Caravan Nigeria, Dr. Basheer Oshodi, CEO and Co-Founder, Trustbanc Arthur and Dr. Jubril Salaudeen, Director Citiserve Limited.

In her presentation, Dada emphasized the need to understudy the history of Islamic finance, fundamentals of Islamic finance, basic principles of Shariah, Islamic Economics, and Islamic business ethics in order maximize the potentials that are available with the industry.

While touching on the fundamental principles of Islamic finance, she highlighted risk sharing-profit and loss sharing, prohibition of unfairness & injustice, prohibition of riba (interest), prohibition of Gharar (Uncertainty), prohibition of Maysir (Gambling), prohibition of monopolies, prohibition of unethical activities, and encouragement of real economic activity.

On the financial structures in Islamic finance, she familiarized participants with various Islamic finance packages as well as trade financing products such as; lease based-financing products; partnership-based financing includes; and service-based products.

Dada noted that Islamic economic system is the collection of rules, values, and standards that organizes economic activities under Shariah principles.

According to her, the objectives of the Islamic economic system include: economic stability for individuals, society, and country; optimum resource usage; fair distribution of wealth; upholding individual freedom and equal rights and opportunities.

She said, “Islamic finance seeks to achieve justice and cooperation and destroy all causes of corruption. Islamic finance tries to bring proper balance between capital and labour, while it also discourages the concentration of wealth in the hands of individuals or a few groups.”

While speaking on the topic, “Principles And Operations of Islamic Financial System” at the training, CEO/Co-Founder, Trustbanc Arthur, Dr. Basheer Oshodi asserted that the purpose of shariah is to touch human lives positively.

He expressed concern over the growing population of Nigeria’s out-of-school children, saying, “In 2012, the population of out-of-school-children was 3.5m, but it has increased to 19m in 2019, of which most are Muslims.”

“The practice of Maqasid Al Shariah is still globally shallow, thereby causing poverty. He added that preserving prosperity and expanding wealth are part of Maqasid; putting this into an Islamic finance model would improve economies.

“Money is not a commodity but the product of social convention, having a purchasing power derived mainly from the sovereignty against the intrinsic value of other goods, “ he said.

According to Oshodi, the Nigerian banking sector has achieved tremendous growth and experienced diversification of products, including non-interest compliant products.

Despite the growth, Oshodi noted the banking sector has witnessed high non-performing loans.

Oshodi expressed confidence that the alternative finance industry, which includes Islamic banking, is a viable tool for funding businesses and creating economic opportunities.

Also speaking at the sesion, Director of Citiserve Limited, Dr. Jubril Salaudeen, said Islamic Social Welfare makes the provision for financial services to achieve social protection of the poor, education, collective investments, microfinance, social enterprise finance and outcome-based philanthropy.

According to him, Muslims are the most financially excluded across the world, He said, “The objective of Islamic social finance is to support the needy and uplift them from poverty by paying 2.5% of their income.”

Salaudeen charged Nigeria’s Zakat foundations to structure ‘Zakat’ payments, urging Nigerians to continue paying zakat as well as other Islamic social finance instruments such as Sadaqat, Waqf, and Qard-al-Hassan.

While speaking on the goal of the training, the President of the Institute and pioneer Professor of Insurance and Risk Management in Nigeria, Tajudeen Yusuf (Department of Actuarial Science, Faculty of Management Sciences, University of Lagos, UNILAG) stated that the motive of the training was to deepen Islamic finance in Nigeria and across the world.

He said, “It requires a lot of dedication, commitment, and passion for contributing our quota to the growth and development of Islamic finance.”

Yusuf assured that the Institute would continue to connect with the members, individuals and engage the larger global community on the ideals of Islamic finance.

He charged participants to continue to promote Islamic finance in their transactions and at their respective place of work and areas of interest, for more Nigerians, from among Muslims and non-Muslims, to benefit from its value.

The Registrar of the Institute, Mr. Monsuru Musa, said the Institute was committed to empowering Muslims, professionals and the public about Islamic finance.

He assured all the stakeholders that the IIFP would continue to train people to bridge the gap of manpower in the Islamic finance industry.

Highlight of the IIFP 2022 bi-annual executive membership training and induction was presentation of membership certificates to the participants by the President of the Institute.

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