A lecturer at the department of Arabic and Islamic Studies, University of Ibadan, Dr Muritala Kareem, has identified Islamic banking as a tool for  eradication of poverty in the country.

He stated this at the biennial conference of the Obafemi Awolowo University Muslim Graduates’ Association (UNIFEMGA), recently in Ibadan.

Dr. Kareem said the interest-free nature of Islamic banking would pave the way for small scale business men to get loan which would enhance stability and progress of their businesses.

The don explained that despite series of programmes initiated by successive administrations towards alleviation of suffering of the masses, poverty continued to grow in geometric proportion.

He said, “In 1972, under the regime of General Yakubu Gowon, there was the National Accelerated Food Production Programme. Operation Feed The Nation was introduced by Olusegun  Obasanjo in 1976 while  Shehu Shagari initiated Green Revolution, all to no avail.”

He explained that apart from creating wealth, Islamic banking would also play a major role in reducing unemployment which had become a social problem in the country.

Dr. Kareem noted that the banking system would curb inflationary trend in the country stressing that a nations where Islami c banking was in operation had witnessed little economic problems. The university lecturer, who is also a chartered accountant, emphasized that Islamic banking products could assist in the provision of infrastructural developments.

He maintained that the key to success of Malaysia’s infrastructural developments was its use of the Islamic financial products stressing that as at 2010, Malaysia had generated 25,258 megawatt of electricity when Nigeria was yet to generate 6,000 megawatt.

He added,  “Malaysia was one time nowhere to be found. Today, it has about 115 airports with one of them, the Kuala Lumpur International Airport, established in 1998 with a capacity of 25 Million passengers,  rated world’s best  for three consecutive years.”

Earlier, the Chairman Biennial Conference Committee of the Association, Alhaji Luqman Fasasi said the practicability of Islamic banking had showed that it had the potential to enhance economic development of the country and act as panacea to poverty alleviation.