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From Fred Ezeh, Abuja
Professor Ganiyat Adejoke Uthman of the Department of Economics, Faculty of Social Sciences at the National Open University of Nigeria (NOUN) has recommended in her research, the adoption of an Islamic economic system in the running of the Nigerian economy.
She stated that the Islamic economic system has proven to be the solution to rising poverty, deprivation and several other vices that are slowing down the socio-economic growth and development of Nigeria.
The suggestion. which was contained in Prof Uthman’s inaugural lecture on the topic, ‘What has finance got to do with it?’ at NOUN, noted that other socioeconomic measures taken by the government to eradicate or minimize poverty and several other ills of the society have failed, hence the option of Islamic economic system which has proven to be effective.
She said that the Islamic economic system focuses on promoting a financial system that’s not interest-based, thus highlighting the injustice embedded in the interest-based financial system globally.
‘It’s therefore pertinent to conclude that poverty alleviation, equality, and justice, reducing the wide gaps between the haves and the haves-not; financial inclusion, management of foreign exchange risk for financial stability, insurance financing for unforeseen contingencies, curtailing corruption and strengthening war against it, infrastructural financing, financial security for individuals, corporate organization and government, capital market development for economic growth with well thought out monetary policy on money and money supply among others can be better achieved through alternative financing from revealing knowledge i.e., Islamic economic system,’ she said.
‘There has been too much gaming of system of capitalism which has not worked after several trials. There has been a corruption of the system of capitalism – borrowing from the words of Greenspan (2002); and there is injustice in the foreign creditors’ interest rates (Obasanjo, 2000).
‘We have tried everything from process and income policies to several varieties of monetary targets and they all came to a sticky end.’
She made reference to Aristotle’s statement that interest taking in the economic system was the most unnatural of all methods of getting wealth.
She reminded the government and policymakers that finance drives growth and growths drive more financing. “Therefore, linking the real sector with the financial socialism which is the basis of Islamic economics is recommended for individuals, corporations, and government at all levels.’
NOUN Vice-Chancellor Prof Olufemi Peters, in his remarks, described the inaugural lecture as a product of deep research and commended the lecturer for adding value to the existing body of knowledge.
