Utilizing Islamic Finance for Socioeconomic Development of the People in Katsina, Nigeria
Isa Kaita College of Education, Nigeria
ABSTRACT
The paper attempts to examine Islamic finance as source of socio-economic development to the people of Katsina. Two important aspects of Islamic finance; Zakat and Waqf are discussed in this regard. This is based on the Islamic theory of social solidarity which zakat is considered to be the most important pillar. Questionnaires and interviews were used as methodologies for data collection. Eighty questionnaires were distributed to two categories of Muslims; learned and unlearned, seventy were filled and returned. The data is presented, analyzed and computed by statistical formula of chi-square distribution. The main research hypothesis is that, the application of Islamic finance could promote socio-economic development in Katsina. The research question is that, can the collection and distribution of zakat bring economic development to the people of Katsina. The research is limited to Katsina metropolises where the people are predominantly Muslims. The main findings include that: poverty, lack of enough capital for investment, unemployment and corruption are the major economic challenges of Katsina people. The people of Katsina however believe that the utilization of Islam finance can solve these economic problems. Finally, the paper recommends for the need of adequate knowledge of Islamic finance, and that government should assist in collecting and distributing Zakat. There is also need for the abolition of usury and establishment of Islamic financial Institutions in the state.
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