Purpose This paper aims to explore the potential of the awareness and knowledge of Islamic social finance (zakat, waqf and Islamic microfinance) to alleviate poverty during the COVID-19 pandemic with the moderating effect of ethical orientation. Design/methodology/approach The data were collected through the administration of paper-based and electronic questionnaires to 400 respondents out of which only 277 were found valid for analysis. Findings The study showed that by direct relationship, the awareness and knowledge of Islamic social finance instruments have a potentially significant positive contribution to poverty alleviation during the COVID-19 pandemic except for zakat that has an insignificant positive contribution. Ethical oriental has also a significant positive contribution. Contrary to expectation, the moderating effect of ethical orientation has changed zakat and waqf to have significant negative and insignificant positive contributions, respectively. Only Islamic microfinance has endured the moderating effect to continue contributing significantly and positively to the reduction of poverty. Research limitations/implications The study explored only the potential impact of the awareness and knowledge of Islamic social finance to mitigate the extreme poverty caused by the COVID-19 pandemic in Nigeria. Practical implications This study clearly showed the need to create enabling laws and policies to support the operations of zakat and waqf institutions to achieve their objectives effectively and efficiently. These two institutions should be integrated with Islamic microfinance for the possibility of getting better outcomes. Social implications There should be massive campaigns to restore religious, social and political ethics to enhance the socio-economic development of Nigerians based on the principles of brotherhood. Originality/value This study provides unexpected and unusual results showing the inability of zakat and waqf institutions to alleviate poverty due to poor ethical orientation.
Purpose The purpose of this study is to examine the contribution of academic and professional institutions in promoting the awareness and knowledge of Islamic banking and finance in Nigeria. Design/methodology/approach The data were generated through a documentary research method by examining the Benchmark Minimum Academic Standards (BMAS) for Nigerian universities and Nigerian university curricula for the relevant undergraduate programs, as well as examination syllabi and training brochures for the relevant professional associations. Findings The study found that universities do not promote significantly the awareness and knowledge of Islamic banking and finance. Similarly, the relevant professional associations through their examinations and training programs contribute little or nothing to the promotion of awareness and knowledge. Research limitations/implications This study solely relied upon documentary evidence upon which the findings were based. In addition, for academic institutions, only undergraduate BMAS and curricula were examined. Practical implications There should be collaborations between the National University Commission of Nigeria, relevant Islamic and non-Islamic professional bodies and Nigerian Universities to ensure that courses (subjects) that could promote the awareness and knowledge of Islamic banking and finance are fully integrated into academic and professional curricula and training programs. Social implications The integration of an adequate number of relevant courses/topics into academic curricula and professional institution examination syllabi and their Mandatory Continuing Professional Development programs would greatly contribute to the production of competent and skillful employees to work for the growth and development of the Islamic banking and finance industry. Originality/value This study provides better ways of ensuring that knowledgeable and qualified employees are produced to work for the sustainability of the global Islamic banking and finance industry.
Nigeria is the largest economy in Africa and yet, a poverty-ridden oil-producing country. Thus, poverty remains a persistent macroeconomic challenge in Nigeria with devastating consequences, especially in the Muslim populated states like Kano. Surprisingly, Kano state, which is the most populated state in Nigeria with more than 15 million people, is one of the 14 most poverty-ridden states in Nigeria, despite the practice of Zakah institution (ZI). Therefore, this study empirically evaluates the revenue base and impacts of ZI on poverty alleviation in Kano state. Hence, 1,230 copies of questionnaires were administered and seven high profile Zakah payers were interviewed. Meanwhile, the data analysis was accomplished using descriptive statistics, correlation, and regression techniques, among others. The major findings indicate that the enormous revenue base of ZI for poverty alleviation exists, because of the significant Zakah payment by high ability Zakah payers. Similarly, ZI positively impacts on poverty alleviation. All in all, the findings lend credence to the Zakah-effectiveness hypothesis. Hence, this study recommends that Kano state government should exemplify more accountability and transparency in Zakah management. Moreover, a Ministry of Zakah and Hubusi Affairs should be established with the mandates of poverty alleviation and economic empowerment in the state.
Purpose The purpose of this paper is to augment the present literature on the relationship between relative financial deprivation (RFD), financial anxiety (FA), access to Islamic financing (AIF) and financial satisfaction (FS) of micro, small and medium enterprise (MSME) owners. Principally, the study examines the moderating role of AIF on the RFD–FS and FA–FS relationships. Design/methodology/approach Quantitative survey approach was used to collect data through self-administered questionnaires from MSME owners. Partial least square (PLS) structural equation modelling (SEM) version 3.2.7 was used to analyse 208 retrieved questionnaires. Findings The results confirm that the RFD–FS relationship is negatively significant, but the FA–FS relationship is not significant. However, the direct relationship between AIF and FS is positively significant. Conversely, AIF failed to moderate the RFD–FS and FA–FS relationships. Practical implications The study specifies that the existence of RFD will decrease the FS of MSME owners, and therefore, RFD should be eliminated at all costs. However, the greater the AIF, the stronger will be the FS of MSME owners. Thus, policymakers and owners of MSMEs should emphasize on AIF to foster FS. Nevertheless, AIF could not redirect the negative impact of RFD and FA on MSME owners’ FS. Originality/value This study, to the best of the authors’ knowledge, is the first to examine the moderating role of AIF on the RFD–FS and FA–FS relationships among MSME owners. Notwithstanding the importance of small business owners for economic development, the literature on MSME entrepreneurs FS has been neglected. This study also uncovers new theoretical knowledge by revealing the inability of AIF to alter the RFD–FS and FA–FS relationships.
This study(1) appraises the economic significance and benefits of ṣukūk in financing budget deficits in the Nigerian economy. Using secondary sources of data, the study employs content and trends analyses to achieve its objective. Essentially, the study posits that the issuance of ṣukūk as an alternative to other interest-bearing financial instruments can effectively finance budgetary and infrastructural deficits and complement in achieving developmental objectives in Nigeria. Also, ṣukūk has the potential of promoting fiscal sustainability of the Nigerian economy. It is therefore recommended that the federal government should integrate ṣukūk as part of its fiscal strategic policies for financing budgetary and infrastructure deficits.
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