The viability of Salam finance in the growth of agricultural production in Kano State, Nigeria

Salam finance (sales contract) is a Shariah product used by Islamic financial institutions.It is a transaction in which the payment of the sold commodity is to be made at a spot or immediately after signing the sales contract, while the delivery of the commodity is at the agreed future time.The paper intents to study this Islamic mode of financing agriculture in order to see the way and manner it can enhance the agricultural output of Kano state, being the most populous and agrarian state in Nigeria.This study explores the potentialities of Salam finance.It’s role in the growth of agricultural output to meet the demand level of the state population and provide raw materials for industries. It highlights the historical background of Kano state in terms of agriculture and agribusiness.Almost, 70 percent of the population as is solidly dependent on agriculture and agribusiness as their main source of livelihood.Agriculture contributes a higher percentage to the state revenue before the discovery of petroleum.This paper recommends that, the Kano state micro finance banks, mostly the ones in rural areas should adopt Salam mode of financing.It is expected that the adoption of Salam finance will improve the supply of agricultural output, create more employment opportunities and improve local and modern industries and commerce.It will also promote sustainable growth of the Kano state economy and Nigeria in general.This is a qualitative paper in terms of methodology

Islamic perspectives on liquidity risk management practices of Islamic banks in Malaysia and Bahrain

The objective of this paper is to highlight the Shariah guidelines on management of liquidity risk based on Qur’an and Hadith.It also seeks to discuss the sources and challenges of liquidity risk in Islamic banks.Various attempts being made at mitigating the effect of liquidity risk on Islamic banks in Malaysia and Bahrain are also reviewed.The paper adopts library research by extracting information from relevant texts, journals and other publications.The authors recommend extension of Liquidity Management Framework in Malaysia and Liquidity Management Centre in Bahrain to other countries to ease the problem of liquidity management.It also advocates for independent or autonomous central authorities that will provide Shariah-compliant Lender of Last Resort (SLOLR) across each of the countries operating dual banking systems to provide adequate support for Islamic bank

UMAR IBN KHATTAB, AN EPITOME OF SERVANT LEADERSHIP: A SUSTAINABLE LESSON FOR CONTEMPORARY LEADERS

Servant Leadership is believed to have been a new theory coined and inserted into the field of leadership and management by an American Scholar, Robert Greenleaf in early 1970s. Since then, it has been one of the important types of leadership that attract the interest of the Scholars or Researchers. Therefore, the paper intends to portray an icon and epitome of such leadership stylefrom Islamic perspective, ‘Umar ibn Khattab (r.a), the second Caliph in Islam. It presents the historical background of the icon. It also discusses the definition and origin of the theory. The paper also enumerates evidences of emulation of the icon from authentic literature. Likewise, it portraysthe servant leadership characteristics as it can be seen in ‘Umar’s personality (r.a). In an attempt to dig into the root ofthe theory, the paper looks into the Chinese, Christianity and Western perspectives of the style. The study contains no numericalor statistical value in achieving its aims and objectives, that is to say, purely qualitative research methodology is employed. The study re-emphasizes that the theory is one of the theories or styles which have been enshrined in Islam since 14 century ago. It also depicts that ‘Umar ibn Khattab (r.a) was an important figure to be emulated in actualizing the theory. It is anticipated that sustainability of a good governance and management in any given community or organization will be achieved by putting the characteristics into practice. Furthermore, it is expected that many contemporary leadership dilemmas will be overcome, if the contemporary leaders follow the Caliph’s step

The effect of farm credit and farm produce in Kano State Nigeria

Farm produce serves as a sustainable way of livelihood in terms of food security, employment, income, industries and market among others.This paper is a conceptual paper that seeks to explore the viability of Murabahah finance on the relationship between farm credit and farm produce. This is a cross-sectional research design.Method of data collection is questionnaire; a total of 760 individual farmers will be the target respondent in this study.And structural equation model (Smart- PLS 2.0) statistical application will be used for data analysis.It was found that the problems of high interest rate, insufficient and timely farm credit, poor modern farm equipment such as: tractors, harvesters, planters, storage facilities, fertilizer, herbicide, insecticide, transportation and communications among others. Based on these findings appropriate recommendations were suggested that will tackle the affirmation problems

Murabahah finance as a potential moderator on the relationship between farm infrastructure and agricultural output in Kano State, Nigeria: a propose frame work

Agriculture is act of soil cultivation, rearing of animals, forestry for the purpose of food supply and raw material to the industries for human satisfaction and poverty eradication as well as economic growth.However, the agricultural output in Kano state is declining day after day. Despite the socioeconomic importance of agriculture and the initiatives of both public and private organizations to grow the output, yet the problem is increasing. The objective of this paper is to propose a model for examining the moderating influence of Murabahah finance on the relationship between farm infrastructure and agricultural output in Kano State Nigeria.The study proposes a model that hopes to use by the Kano state ministry of agriculture, financial institutions and farmer cooperatives to the tackle the problems.In addition, this paper introduces Murabahah finance as a potential moderating variable

Economic theories of Ibn Khaldun from his great work, Muqaddimah

The article deals with the economic theories of the prominent scholar of 14th century, 'Abd ai-Rahman bin Muhammad ibn Khaldun as it was propounded from one of his major works The Muqadimah "Introduction" or "Prolegomena, " which was written as an introduction to "The World History" or Kitab al- 'ibar, wa diwan al-Mubtada' wa al-Khabar. After presenting the icon and some of his works, the paper explains the principal crafts or works, which Ibn Khaldun believes as the most necessary for human existence and necessity for their survival. The Article also explains labour as a source of value in khaldunian's theory, where the concept of rizq "sustenance" is expounded. Division of labour is one of the important concepts in contemporary economics; Ibn Khaldun has discussed it in his landmark book and concludes that cooperation is needed between each division and specialization. The article also touches the theory of demand and supply and relationship between both, which is regarded as determinant factors for the price of commodity in the market as projected in Muqadimmah. The article explores the Theory of Money, its value and its relation to income and expenditure; it provides khaldunian's argument against modern money theory. It also investigates theory of taxation as speculated by Ibn Khaldun. The study is based on library research whereby, books, articles are consulted. Magazines and on-line journal articles are of great use in conducting this study. However, the main reference is Muqaddimah

Examining the traditional waqf-based financing methods and their implications on socio-economic development

Waqf properties constitute a large percentage of societal wealth in several Muslim countries. Yet, many Muslim countries are facing enormous socio-economic problems such as poverty, illiteracy and lack of basic healthcare services. These socio-economic problems encourage contemporary Muslim scholars to revive the traditional methods of financing the development ofwaqf properties to ensure that waqf institution plays its vital role onimproving the social welfare of the ummah. This paper examines the traditional waqf-based financing methods of developing waqf properties and their implications on socio-economic development. We have realized that with goodwaqf management and effective legislations, istibdal could be more suitable for the development of waqf properties, which in turn will finance socio-economic development. Nevertheless, all the traditionalwaqf-basedfinancing methods may not be suitable in most of the low income Muslim countries, as there are widespread corruption and abuses of waqf properties. Therefore, allowing the waqf management to develop waqf assets using these traditional methods may expose waqf assets to further abuses and expropriation. The paper suggests that, putting the right waqf management teams which practices good governance; cash waqf, waqf share scheme and corporate waqf would be the most suitable methods of financing both the development of waqf properties as well as socio-economic development