Significance of Murabahah Finance towards the Imrovement of Agricultural Productivity in Kano State, Nigeria

  • Authors

    • Ahmad Bashir Aziz
    • Ahmed Ibrahim Mohammed
    • . .
    2018-08-08
    https://doi.org/10.14419/ijet.v7i3.21.17156
  • Murabahah finance, Micro finance banks, agricultural output, Kano state, Nigeria.
  • Murabahah finance (mark-up) is an Islamic financial product which engages in sales of a commodity in cash or in credit with a full knowledge and agreement on the cost of a commodity and profit margin by both the buyer and the seller. It explores the Shariah legal justification and it is viable in advancing agricultural output of the most populous state of Nigeria. Equally, the study momentarily revealed the background of Kano state. The state is occupied by agricultural output and agro-allied industrial products that serve as a channel of earning income to the farmers and government prior to the discovery and exploration of oil. The study is intents to poster the significance Murabahah finance towards the improvement of this type of Islamic financial product in order to contribute to the agricultural output of Kano state. This paper aims to put into the development of the 44 Kano state micro finance banks, which are the infant financial institution owned by the state government. It is hoped that the outcome of this research will improve the socioeconomic standard of rural farmers, enhance food supply, agribusiness, and agro allied industries of the state. It is also hoped that the application of Murabahah will attract both local and foreign investors which will lead to the economic growth of Kano state and Nigeria in general. This study employed qualitative research methodology, whereby the data will be extracted from the books, magazines, scholarly articles, and other relevant websites material. 

     

     

  • References

    1. [1] 1. Khan T. An analysis of risk sharing in Islamic finance with reference to Pakistan: © Tariqullah Khan; 1996.

      [2] . Aburaida KMM. Rural Finance As A Mechanism For Poverty Alleviation In Sudan, With An Emphasis On „Salam “Mode. European Scientific Journal, ESJ. 2014;7(26).

      [3] . Ayub M. Understanding islamic finance: az keuangan syariah: PT Gramedia Pustaka Utama; 2007.

      [4] . Ringim KJ, Mohd Yussof I. ASSESSING THE INSIGHT OF MUSLIM ACCOUNT HOLDERS'IN CONVENTIONAL BANK TO PURCHASE ISLAMIC BANK PRODUCTS. Journal of Emerging Economies & Islamic Research. 2014;2(3).

      [5] . Mohammed AI, Bashir A, Ogunbado AF, Adamu S, Salisu Y, Yakubu SM. Murabahah finance as a potential moderator on the relationship between farm infrastructure and agricultural output in Kano State, Nigeria: a propose frame work. 2016.

      [6] . Khaleequzzaman M, Shirazib NS. Islamic Microfinance–an Inclusive Approach with Special Reference to Poverty Eradication in Pakistan. International Journal of Economics, Management and Accounting. 2012;20(1).

      [7] . Ahangar GB, Padder M, Ganie AH. Islamic banking and its scope in India. IRACST–International Journal of Commerce, Business and Management (IJCBM). 2013;2(5):266-9.

      [8] . Mohammed S, Ibrahim US, Abubakar N. Effect of hike in food prices on households food expenditure in kano state, Nigeria: a case of 2008 global food crisis. 2014.

      [9] . Nijbroek RP, Andelman SJ. Regional suitability for agricultural intensification: a spatial analysis of the Southern Agricultural Growth Corridor of Tanzania. International journal of agricultural sustainability. 2016;14(2):231-47.

      [10] . Jayne TS, Chamberlin J, Headey DD. Land pressures, the evolution of farming systems, and development strategies in Africa: A synthesis. Food Policy. 2014;48:1-17.

      [11] . Adetiloye KA. Agricultural financing in Nigeria: an assessment of the Agricultural Credit Guarantee Scheme Fund (ACGSF) for food security in Nigeria (1978-2006). Journal of Economics. 2012:39-48.

      [12] . Siddiqi MN. Islamic banking and finance in theory and practice: A survey of state of the art. Islamic economic studies. 2006;13(2):1-48.

      [13] . Hassan MT, Sattar MA, Tousif MA, Nasir N, Sadiq M, Yasmeen M. Role of Islamic Banking in Agriculture Development in Bahawalpur, Pakistan. International Journal of Learning and Development. 2012;2(3):123-38.

      [14] . Jinjiri Ringim K. Perception of Nigerian Muslim account holders in conventional banks toward Islamic banking products. International Journal of Islamic and Middle Eastern Finance and Management. 2014;7(3):288-305.

      [15] . Obaidullah M. Enhancing food security with Islamic microfinance: insights from some recent experiments. Agricultural Finance Review. 2015;75(2):142-68.

      [16] . Alamer ARA, Salamon HB, Qureshi MI, Rasli AM. A New Business Process and Outcome Oriented Corporate Social Responsibility Index for Islamic Banking. International Journal of Economics and Financial Issues. 2015;5.

      [17] . Alamer ARA, Salamon HB, Qureshi MI, Rasli AM. How do We Measure Corporate Social Responsibility of Islamic Banks through their Business Processes and Oriented Outcomes? International Journal of Economics and Financial Issues. 2015;5.

      [18] . Alamer ARA, Salamon HB, Qureshi MI, Rasli AM. CSR's measuring corporate social responsibility practice in Islamic banking: A review. International Journal of Economics and Financial Issues. 2015;5(1S).

      [19] . Ahmed H. Islamic Banking and Shari’ah Compliance: A Product Development Perspective. Journal of Islamic Finance. 2014;3(2):15-29.

      [20] . Ahmed Hilmy H. Introducing Salam as an alternative financing tool for paddy field cultivation in Sri Lanka: special reference to Eastern province. 2013.

      [21] 21. Rahman AA, Yousif O. Role of Private Agricultural Extension Sector in Gezira State, Sudan. American Scientific Research Journal for Engineering, Technology, and Sciences (ASRJETS). 2016;25(1):281-8.

      [22] . Hendriks SL, Lyne MC. Does Food Security Improve when Smallholders Access a Niche Market?: Lessons from the Embo Community in South Africa: African Centre for Food Security; 2009.

      [23] . Dandago K. Beyond Slogans: How States Hold the Ace for Nigeria’s Industrialisation Kano. Benchmark Publishers Ltd; 2005.

      [24] . Khaldun FI, Rosenthal N. The Muqaddimah an Introduction to History; Translated From the Arabic by Franz Rosenthal, Abridged and Edited by NJ Dawood. 1967.

      [25] . Bećirović S, editor The role of microfinance in the agricultural development of the cross-border region of Sandzak. International Conference" SMEPP; 2011.

      [26] . Saqib L, Nazeer N, Khan K, Zafar MA. Application of Islamic banking instrument (MurÄbaha) for sugarcane industry in developing countries. Journal of Islamic Economics, Banking and Finance. 2013;9(1):89-106.

      [27] . Mastoor SA, editor Islamic Banking System in Afghanistan. Proceedings of International Academic Conferences; 2014: International Institute of Social and Economic Sciences.

      [28] . Mohsin MIA. The practice of Islamic banking system in Sudan. Journal of Economic Cooperation. 2005;26(4):27-50.

      [29] . Ogbonna IC, Uwajumogu NR, Chijioke G, Nwokoye ES. Oil Exploitation and Agricultural Commodity Export in Nigeria: An Empirical Evaluation of the Extent and Impact of the Dutch.

      [30] . Anthony E. Agricultural credit and economic growth in Nigeria: An empirical analysis. Business and Economics Journal. 2010;14:1-7.

      [31] . Chisasa J. An Econometric Analysis Of Bank Lending And Agricultural Output In South Africa: A Survey Approach. Journal of Applied Business Research. 2015;31(1):163.

      [32] . Anyanwu S, Ibekwe U, Adesope O. Agriculture share of the gross domestic product and its implications for rural development. Report and Opinion. 2010;2(8):26-30.

      [33] . Ahungwa G, Haruna U, Abdusalam RY. Trend analysis of the contribution of agriculture to the gross domestic product of Nigeria (1960-2012). Journal of Agriculture and Veterinary Science. 2014;7(1):50-5.

      [34] . Ammani AA. An investigation into the relationship between agricultural production and formal credit supply in Nigeria. International Journal of Agriculture and Forestry. 2012;2(1):46-52.

      [35] . Seibel HD. Poverty reduction and rural finance: From unsustainable programs to sustainable institutions with growing outreach to the poor. Working paper/University of Cologne, Development Research Center; 2000.

      [36] . Akoum IF. Globalization, growth, and poverty: the missing link. International Journal of Social Economics. 2008;35(4):226-38.

      [37] . Polycarp I, Odufote B. Enhancing Credit Flow to the Agricultural Sector: The Case of Central Bank of Nigeria’s Commercial Agriculture Credit Scheme (CACS). African Farm Management Association (AFMA); 2012.

      [38] . Phillip D, Nkonya E, Pender J, Oni OA. Constraints to increasing agricultural productivity in Nigeria: A review. International Food Policy Research Institute (IFPRI); 2009.

  • Downloads

  • How to Cite

    Bashir Aziz, A., Ibrahim Mohammed, A., & ., . (2018). Significance of Murabahah Finance towards the Imrovement of Agricultural Productivity in Kano State, Nigeria. International Journal of Engineering & Technology, 7(3.21), 175-180. https://doi.org/10.14419/ijet.v7i3.21.17156