Promoters of Shariah Compliant Finance have often exaggerated and even fabricated the benefits of Shariah-Compliant Finance. They have declared it “ethical” despite all of the sukuk defaults, the zakat money finding its way into terrorist hands and the large shariah-compliant financial institutions that have even been sanctioned due to their ties to terrorism.
Sometimes, the claims of the financial jihadists are somewhat more mundane, but they are misleading nonetheless and designed to convince people that Shariah Finance is a panacea for everyone involved.
This has been especially true in Nigeria, where non-Muslims have been resisting attempts to incorporate Shariah Finance amidst a growing, violent Jihadist insurgency.
The latest tactic to attempt to get the people of Nigeria to embrace Shariah Finance comes from a professor of accounting at Bayero University. Professor Kabiru Isa Dandago claims that “Islamic Finance” is the “best way in fighting poverty.”
He uses the example of takaful insurance to justify this claim, which is certainly no proof at all. In fact, he doesn’t offer any concrete proof of this claim, nor does he address the fact that poverty exists in droves in places like Pakistan where Shariah Finance is being promoted robustly…