Saudi Institute conducts research on acceptance of Islamic micro financing by smallholder farmers in Jigawa
NAN-HE-1
Research
By Muhammad Nasir Bashir
Dutse, Sept. 18, 2017 (NAN) The Islamic Research and Training Institute (IRTI) in Jeddah, Saudi Arabia, is to conduct research on acceptance of Islamic micro finance by smallholder rice and wheat farmers in Jigawa State.
The institute is an affiliate of Islamic Development Bank.
Dr AbdusSalam Mas’ud, the Head of Accountancy Department at Hussaini Adamu Federal Polytechnic, Kazaure, Jigawa, confirmed this development to the News Agency of Nigeria (NAN) in Dutse on Monday.
Mas’ud said that the research would be conducted by a team he would head.
“The institute selected me to conduct the research after a context was conducted where different scholars sent their proposal from different parts of the world on how conduct the research to reduce poverty and enhance financial stability.
“So, my proposal was accepted to conduct the research, that is to say the IRTI will finance the research and I will conduct it.
“Therefore, the research in Jigawa State is to be conducted by a research team at the Department of Accountancy, Hussaini Adamu Federal Polytechnic, Kazaure.
“The team will be lead by Dr Abdulsalam Mas’ud, the head of department and will be assisted by Malam Umar Bello Umar, a staff of the department,” Mas’ud told NAN.
Mas’ud said the aim of the research was to identify the factors influencing the acceptance of Islamic micro finance as an alternative means of financing agriculture in the state which has about 70 per cent of its population as rural farmers.
He said that the Islamic micro finance, when accepted by farmers, would reduce the problems being experienced in the existing agricultural support programmes such as Anchor Borrowers’ scheme.
“For instance, wheat farmers, who suffered losses in the last season, are finding it difficult to meet their obligations under the anchor barrowers’ programme due to poor output.
“Thus, Islamic microfinance can solve some of these problems under financing methods such as “Salam Financing” and “Musharaka”.
According to him, when rural farmers accept the Islamic micro finance, there could be the possibility of establishing Islamic microfinance institutions in the state either by local Islamic bank or international.
“This will eventually increase the financial inclusion of the rural farmers, there by assisting the Central Bank of Nigeria to achieve its target of improving financial inclusion to eighty per cent by 2020,” Mas’ud said.
He said that IRTI was conducting research globally not only in Nigeria to understand the ways and means poverty reduction and financial stability would be ensured.
“To ensure the smooth conduct of the exercise, the team has already paid an advocacy visit to the Special Assistant of the Jigawa State Governor on Rice Production, Alhaji Jamilu Muhammed Dan Malam, in his office on Sept. 12,” he said. (NAN)
MNB/AOM/TÁ
Edited by Abdullahi Mohammed/Tajudeen Atitebi