AN APPRAISAL OF THE IMPACT OF ISLAMIC CO-OPERATIVE SOCIETIES ON SOCIO-ECONOMIC DEVELOPMENT IN SOME SELECTED STATES IN NIGERIA

Aminu Abdulrahim Olayinka; Abdul Fattah Abdul Ganiy; Murtala Sirajo

doi:10.46281/ijibm.v5i1.1215

Aminu Abdulrahim Olayinka Mai Idris Alooma Polytechnic, Nigeria
Abdul Fattah Abdul Ganiy Federal Polytechnic Kaura Namoda, Nigeria
Murtala Sirajo Gombe State University, Nigeria

DOI: https://doi.org/10.46281/ijibm.v5i1.1215

Keywords: Cooperative Society, ICSs, Conventional, Poverty, Socio-Economic.

Abstract

This study assessed the impact of Islamic Co-operatives Societies (ICSs) theoretically, legally and practically on Socio-Economic Development in Nigeria and consider its establishment in our various conventional interest-based economy community, which contradicts the ideals of Islamic principles of finance. The research was carried out within the general framework of Islamic financial principles and precepts. The research work focused on the needs of financing a large and growing Muslims community in line with their Islamic tenets thereby concentrating on the feasibility of adopting suitable ICS’s modus operandi for the Muslim Community. It also studies the current realities of the ICSs being practiced in Nigeria from the perspective of the theories of Islamic financial system. Within this spectrum the operations and functions of registered Islamic cooperative societies in Adamawa Gombe, Kwara, and Zamfara States were reviewed. The study examined the key role of ICSs in an economy in fulfilling the microfinance needs of Muslims community, and find out that ICSs is a viable alternative solution to the conventional cooperative models and also alternative measure with potentiality to alleviate poverty. The study is limited in scope in a sense that it is not a comparative study of Islamic financial system with doctrines of other religions, ideologies and systems.

JEL Classification Codes: D6, F63, R51, Q01, P13.

Author Biographies

Aminu Abdulrahim Olayinka, Mai Idris Alooma Polytechnic, Nigeria

Accountancy Department, Mai Idris Alooma Polytechnic, Geidam, Yobe State, Nigeria

Abdul Fattah Abdul Ganiy, Federal Polytechnic Kaura Namoda, Nigeria

Department of Accountancy, Federal Polytechnic Kaura Namoda, Zamfara State, Nigeria

Murtala Sirajo, Gombe State University, Nigeria

Department of Accounting, Gombe State University, Gombe, Gombe State, Nigeria

References

Abubakar A. M., (2020). Application of Islamic Financing Options in the Operations of Yobe State Cooperative Multi-Purpose Society (YSU-CMS). Journal of Islamic Business and Economic Review 3(1), 31-37

Ahmad A. U. F., & Ahmad, A. R. (2008). Islamic microfinance: A case study of Australia. Journal of Islamic Economics, Banking and Finance, (2), 59-80.

Ajani M. A. A., & Adebayo R. I (2018). An examination of the sources and expenditures of funds in the Islamic cooperative societies in Nigeria. Ilorin Journal of Religious Studies, (IJOURELS), 8 (2), 35-50

Azeez, A. O., & Salako, T. A. (2007). Practicability of Islamic Economic Theories to Poverty Alleviation: Alamsek Press Limited. 339-348.

Blewitt, J. (2008). Understanding Sustainable Development. (1st ed.) UK. London. Earthscan Publication Ltd.

Chapra, U. (2008).The Islamic vision of development in the light of maqasid al-Shariah. Islamic Research and Training Institute, Islamic development Bank.

Dusuki, A., & Abozaid, A. (2007). A critical appraisal on the challenges of realizing Maqasid al-Shariah in Islamic Banking and Finance. IIUM Journal of Economics and Management, 15(2): 143-165

El-Mesawi, M. (2006). Ibn Ashur Treatise on Maqasis al Shariah, The International Institute of Islamic Thought London.

Graaff, J. (2003). Introductions to sociology: Poverty and Development. Oxford Cape Town. University Press

Irfan Beik & Indah Purnamasari. (2011). Role of Islamic Cooperatives in Financing Micro and Small Scale Entrepreneurs in Indonesia: Case Study of KOSPIN Jasa Syariah
Pekalongan. Paper presented at the Eight International Conference on Islamic Economics and Finance. Organized by Qatar Faculty of Islamic Studies and the Qatar Foundation on 19th -21th December 2011, Doha Qatar

Islam, K. M. A. (2017). Finance: An Islamic Perspective. International Journal of Islamic Banking and Finance Research, 1(1), 1-5. https://doi.org/10.46281/ijibfr.v1i1.32

Kareem, R.O, Arigbabu, Y.D, Akintaro, J.A. & Badmus, M.A (2012). The impact of cooperative society on capital formation: A case study of Temidire Cooperative and Thrift Society Ijebu Ode Ogun State Nigeria, Global Journal of Science Frontier Research Agriculture and Veterinary Sciences 12(11): 17-23

Mohammed, A. & Hasan, Z. (2008) Microfinance in Nigeria and the Prospects of Introducing an Islamic Version in the Light of selected Muslim countries‟ experience, Review of Islamic Economics, 13(1) https://mpra.ub.uni-muenchen.de/8127/1/MPRA_paper_8127.pdf

Nigerian Cooperative Societies Act, LFN 2004.

Nwagbara, C. (2018), Relevance of Cooperative Societies to the Nigerian Economy – A Legal Approach International Journal of Innovative Legal & Political Studies 6(2): 38-56

Onakoya, A.B. & Onakoya, A. O. (2013). Islamic microfinance as a poverty alleviation tool: Expectations from Ogun State, Nigeria Scholarly Journals 2013: 36-39

Swanepoel, H. (1992). Community Development: Putting Plans into Action (2nd edition). Kenwyn. Juta.

Yusuf, A. D., & Ahmad Razimi, M. S. (2017). Nigerian Economic Recession: An Islamic Perspective. International Journal of Islamic Banking and Finance Research, 1(1), 6-13. https://doi.org/10.46281/ijibfr.v1i1.34