ISLAMIC APPRAISAL OF MICROFINANCE LOANS AMONG MUSLIM WOMEN INLAFIA, NASARAWA STATE

Abstract

Living on Microfinance bank loans has become a normal way of life among Muslim women in Lafia, Nasarawa State. These loans are given to women as a form of assistance and empowerment and as a strategy for lifting their status and alleviation of poverty. However it has been observed that the succour that these loans ought to have brought to the borrowers is not forthcoming due to high interest rate and uncertainty involved. The paper critically examines contribution of these loans to attainment of sustainable development among Muslim women in Lafia town, the capital city of Nasarawa State. It employs qualitative and quantitative techniques for its analysis. It gathers its data through a review of existing literature, oral interviews, focus group and a random survey of beneficiaries of the loans in the study area. The findings reveal that Microfinance loans has not
averagely achieved its goals of making positive impact on poverty alleviation, improved livelihood and general well-being of Muslim women in the study area. The study concludes by recommending the introduction of Islamic Microfinance loans by the Muslim Philanthropists, Islamic
Organizations and the State Government for it is would be a viable instrument for sustainable development and perform better in the areas of poverty alleviation and women empowerment than the conventional loan scheme in the study area. It further recommends positive collaboration
between policy makers in Islamic Banking and financial institutions, experts in Islamic Banking and Finance industry, Islamic Scholars and Organization, conventional microfinance institutions and Islamic Development Bank (IDB) to promote Islamic microfinance bank as a tool for sustainable development among Muslim women in Lafia town. Nigeria and across the globe.