Friday, May 20, 2022 / 11:00 AM / by Bukola Akinyele-Yisau for WebTV / Header Image Credit: WebTV

The development of innovative products that are non-interest bearing will deepen the 'No-Interest' policy and boost financial inclusion in Nigeria. Mr. Lukman Ibrahim, Founder and CEO of Halal Payment Service Limited, spoke on dynamic ways to improve Nigerians' financial access. 

He tasked innovators, fintech companies, and stakeholders in the non-interest financial segment to explore ways to leverage products like Murabaha and Mudaraba, which have the 'No Interest' policy component.

He provided his perspective on driving digital financial inclusion in Nigeria through a no-interest policy. He explained an ancient methodology of eradicating poverty among people guided by the Holy Quran and the Holy Bible.

He argued that the conventional way of lending is characterized by high-interest rates attached to loans in the financial system. He charged all Nigerians to leverage the non-interest policy to boost the economy and lift people out of poverty.  

"If money circulates well without interest, it will boost the capacity of people to address socio-economic issues ranging from family needs, education, and business capital, and it will be easy for borrowers to return without interest, compared to the high-interest rate that most loan apps and microlenders are providing." 

Citing Islamic principles and scriptures in the Bible, he noted that loans are supposed to be a charity to people and free from interest. 

He called on the government to implement the non-interest policy by creating the required procedures and framework to drive the sustainability model derived from Islamic finance. 

He added, "We need to build technology and products to support and create efficient KYC model, infrastructure and creditworthiness for individuals or businesses to access facilities and enjoy services that cover the mortgage, agribusiness amongst others that can fast-track financial inclusion and economic activities."

Mr. Lukman Ibrahim believed religious leaders should be at the forefront of sensitizing people on the value of doing business with a no-interest policy and creating an enabling environment for fintech to thrive. 

He stressed that the essence of the zero-interest policy is to make life easier for people with the 'No Interest' policy, which aligns with the Islamic finance principles that support financial inclusion.  

Speaking on the GSMA reported that 58% of women are financially excluded in Sub-Saharan Africa, with several barriers preventing them from accessing and using mobile money accounts. He identified a lack of identity as a significant challenge leading to the exclusion.  

The Halal Payment expert believed the government has a vital role in enhancing the framework that supports fintech, which will transform the financial sector. He said it was essential to include the people of faith by providing them mobile money accounts that will give them access to banking services from anywhere for convenience.