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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Is there any potential threat to the use of interest in the Nigerian monetary system?
Author:Olowokure, T.O.
Periodical:Annals of Borno
Geographic terms:Nigeria
Northern Nigeria
interest rates
Abstract:The holy scriptures of Nigeria's main religions, Christianity and Islam, prohibit interest transactions. This prohibition, coupled with growing religious militancy, appears to pose a threat to the use of interest in the Nigerian economy. This study investigates whether such a threat exists. It discusses relevant passages forbidding interest in the Bible and the Koran, examines historical evidence of adherence to the prohibition and employs statistical techniques to analyse data obtained from responses to a questionnaire distributed among 300 individuals from various States, selected on a 'convenient random basis', and among 20 bankers at Maiduguri, Borno State, and Ilorin, Kwara State, in April 1984. Divergent views on interest are expressed by respondents with the majority of Muslims holding that it is sinful to take interest because religion forbids it, while the majority of Christians believe their religion condones interest. Repondents distinguish between loan and deposit interest with a minority of Muslims regarding the latter as a lesser evil. Virtually all respondents operating deposit accounts accept interest due to them. In the country as a whole there is no significant difference in the opinions of both Muslims and Christians, but there are some inter-State differences. However, there is no general anti-interest feeling. These findings suggest that there is at present no threat to the use of interest in the Nigerian economy. Notes, ref.