Opinion

Did Prophet Muhammad (SAW) Permit 100% Interest Rate? A Rejoinder

Published

4 years ago

August 10, 2020

Bello Sani Yahuza,The writer on Interest

By Bello Sani Yahuza

“He who talks on a matter out of his profession comes with surprises” – Ibn Hajar (d. 852AH/1449CE) It has never been an issue for a person to have a keen interest in any field of study. But it is an outlandish the way things are going and the way people quickly assume expertise on a subject matter that are not familiar with.

They instead, come up with a lot of chaos, contradictions and confusion. So, I came across an article, written by one personality called Ali Abubakar Sadiq, a journalist by profession who claims deep knowledge of the Principles of Islamic Jurisprudence where he delves into a delicate and intricate issue of Riba (interest).

Sadiq alleges that the Prophet Muhammad SAW has permitted a 100% interest rate. So, instead of a solution, he brings more confusion to rather known and well define the concept of Riba in the classical juristic theories and its application in the modern banking system.

But, beyond this, the writer creates a world of surprises. In fact, if there is an 8th wonder of the world, I am sure his writing could be the one. I, therefore, write these lines, in order to at least address some of these surprising confusions.

I intend to address some technical questions regarding the subject matter. For instance, is it really the Prophet (PBUH) permitted interest? what really interest is? What and what constitutes interest (al-had)? What is the Dhabid of understanding interest? What is the effective cause of and what is the wisdom/Maqasid of prohibiting interest?

In sha Allah, I will address these questions along the following surprises itemized based on their importance to the subject matter:

The Prophet SAW Accepted Interest: Beyond just surprise, it is rather dangerous to claim that the Prophet (SAW) accepted interest. It can even be sacrilegious. I never read or heard a modernist or an orientalist proclaiming that the Prophet himself accepted and transacted in interest. Had this happen, that could be contradictory, I mean how can Prophet Muhammad SAW prohibits something and practiced it. The legal maxim upholds that, “Prohibition of an issue is by default an enjoinment of its opposite”.
This terminology by jurists fits this context well. Besides, the condemnation of interest in the Qur’anic verses are explicitly clear that, Allah even declare war against devourer of interest (Qur’an 2:179). In another verse He says that the devourers of interest will raise in the day of resurrection in a condition of those beaten by Satan leading him to madness (2:275). Another point is how does the writer reconcile his claim with the verse that says, …and Allah has permitted trade and forbidden interest (riba) “الراب وحرم البيع هللا وأحل .” Qur’an as a legal document and a book of guidance, has unique, distinct, and miraculous style. It is full of laws and principles with a well-defined science of interpretation, in addition to commentaries and exegeses. One cannot interpret it relying upon his weak understanding of the language. Besides, English Qur’anic translated versions like Yusuf Ali and others are not enough to make a person understands the deeper meanings of its verses with their implications. Just as one cannot interpret the constitution of the Federal Republic of Nigeria even if he is what William Shakespeare is to English literature. Only an established court of law can do that.
The only Interest/Riba Prohibited is above 100% Another surprise by the writer is his claim that interest which is not more than 100% is permitted by the Noble Qur’an. The writer builds his novice interpretation of Allah’s saying: “O believers, take not doubled and redoubled interest, and fear Allah so that you may prosper.” (Qur’an 3:130). With this weak, unprecedented interpretation, the writer further exposes his unfamiliarity of what he claims to know. Going by number, how would Qur’an permit 100% interest and forbids something above it? And by volume, does one cup of wine has any difference to two cups, or does stealing ₦100 has any difference to ₦200.
It does not make sense, and that is ridiculous! Simply, the verse prohibited double interest which is 100% and redouble which is more than 100%. Going by the writer’s assertion, how and where does the writer get the permission of 100%? I mean, where does that state in the verse? 3. Riba, Profit, and Gift (Ihsan) Another point the writer seems to lack knowledge of is these three concepts. All of riba, profit, and gift (Ihsan) can come as an increase in repayment, his confusion in understanding the subject matter led him to falsely assume they are the same and equal, and so he messed up with them in his writing. Citing Jabir bin ‘Abdullah’s narration in Sahih al-Bukhari, Vol. 3, No. 579, in which the Prophet repaid him the debt he owed him with an extra amount as evidence for interest.
This is clear misunderstanding of the case. This is not interest, had the writer, instead of assuming knowledge, referred himself to the scholars’ interpretation of the hadith, he would have understood it. The Qur’an says: “But if they had referred it back to the Messenger or to those of authority among them, then the ones who can draw correct conclusions from it would have known about it” (Qur’an 4:83). So, interest is clearly prohibited whereas, the other two are allowed. More so, debt on its own is not, and will never be a mechanism for profit-making in Islam. The trajectories of interest, profit, and gift and how they can interchange in a transaction are dynamic.
Interest is a predetermine unjustified increment which promotes exploitation of the giver upon the receiver of the loan. Giving out loan does not make the money increase. Qur’an says: “That which you give as interest to increase the people’s’ wealth increases not with Allah; but that which you give in charity, seeking the goodwill of Allah, multiplies in manifold.” (Qur’an 30: 39). Paradoxically, profit is a justified return or earning upon which all economic and financial transactions are based. While gift is an act of benevolence (Ihsan). So, in essence, giving loans stipulating an increase in the debt agreement is interest, while selling a commodity with the same increase is profit and any addition of both the two instances without stipulating any condition to it, is a gift (Ihsan). As in hadith he cited, “when he (the Prophet) repaid the loan of a camel giving two back (Muwatta Kitab al-Buyu hadith 1346),
Money and Commodity A very basic knowledge of Islamic finance can help one to know that in Islamic law, there is a world of difference between money and commodity. The writer quoted out of context one tradition in Sahih Muslim of Prophet giving a better-quality camel than the original one.
In Shari’ah, a side of being a recognizable unit of account and means of payment for goods and services, money, has no intrinsic value. Money is only viewed as a mechanism for facilitating trade. A ₦100 notes for instance, a side of being a legal tender in Nigeria, one can hardly draw any benefit from it, and the moment that quality preserved by law is removed it becomes nothing.

All the old paper currencies and coins after they were abolished by law of the land, they are as good as trash. But the commodity on the other hand, has intrinsic value, this means a real economic value. So, naturally one can benefit from food, cloth, shelter by eating, waring, privacy etc.

The implication of that from the jurisprudential perspective is that, one cannot buy and sell money on credit and add anything above the principal. Any increment is interest. The legal maxim says “any loan returns with benefit is interest”. Simply put it, Islam approves Time value in commodity transaction, but prohibits time value of money (TVM).

To really understand the concept of Riba in the Islamic jurisprudence, one must know the difference between money and commodity, it is one major yardstick and fantastic point of difference between Islam and the interest-based systems.

Collateral as Riba Again, another surprise here, the writer claims that taking collateral in giving loans is also an interest. Citing another narration out of context on Prophet’s taking grain from a Jew on credit and giving him collaterally.

The question is how does the collateral in this contract stand as riba? Then, why the Jew had to return back the collateral when the debt was repaid?

A clear contradiction and confusion! Collateral is separate rule in the Islamic commercial transaction.

Let the writer refer to Qur’an 2: 282, to know the rules related to collateral.

The Definition of Riba The writer here claims that the definition of interest is given in the Noble Qur’an when Allah says “Do not devour riba double and redouble” Qur’an 3:130. This verse does not define interest at all. Rather, it explains one scope, an aspect, and a dimension of interest. Why? because, the cultural context and the prevailing economic system in the Arabia during revelation is that, riba is well known by all and sundry.

The known maxim says: “A known matter does not need definition”. Interest is so pervasive that everybody was transacting in it. Perhaps, this is part of the wisdom of its gradual revelation and prohibition. So, let the writer refer to the gradual legislation of interest in the Qur’an.

Riba and Mutual Consent The writer says “There is nothing in the Quran or Hadith that prohibits the pre-fixing of the rate of return, as long as it occurs with the mutual consent of the parties and doesn’t exceed 100%, since the prophet’s payment of two camels for one is 100% interest”. Another glaring misconception! When, where and how the mutual consent of the parties constitutes a source of law in Shari’ah? Or when does it make permitted what is prohibited? I need an answer to this please!

Originality The technical aspect of the writing is another drawback of the writing. Apart from verses and hadith he cited; the writer uses most of the writings which are from the secondary sources. The writer claims ownership as if he is the original writer of the issues. He did not acknowledge his sources which some of them are just copied and paste from online internet sources such as Wikipedia and so on.

The arguments made by the modernists and orientalists like Muhammad Akram Khan, Timur Kuran, Muhammad Omar Faruq who use TVM, inflation, and so on to defend the banking interest.

Other scholars who are moved by political fatwas such as Sheikh Tantawi and other scholars from Egypt, their fatwa is controversial not accepted even in Al-Azhar.

Another aspect I find also, apart from modernists’ argument on interest, the writer’s claim on Jassas as the first to interpret interest as all increase, Ottoman’s dealing with interest and historical narration of legalizing interest, these and many others, are not acknowledged. Most of them are copied from Wikipedia (source – https://en.wikipedia.org/wiki/Riba#Non-orthodox_approach).

You can see, getting access to information source does not make a person knowledgeable of the subject matter.

Warning My advice to the writer is to call his attention that while knowledge is never a monopoly of anybody, but it has its own standard, discipline, and decorum anybody must adhere to. And while, one will never claim to know everything, the jack of all trade will always be a master of none.

Allah The Almighty says: “You have given all of the knowledge but a little”. That is why professionalism is very important and every person should follow his own profession. Nevertheless, no one is denied the benefit of having an interest in any particular field of study.

But that aspect should be handled with maturity and respect of the discipline.

Admonition, In conclusion, the entirety of religion is based on admonition (Nasihah). My first and foremost admonition to the writer is to quickly repent from alleging the Prophet of accepting riba.

It is a grievous sin to falsely attribute something to Allah or to His Messenger. Some scholars rank it equal with the association (shirk) or more grievous than shirk.

I also call him to withdraw his claim and adopt the authentic view accepted by the Muslims ummah. The Prophet says: “My nation will never unite on falsehood” You cannot fault the Ummah in its entirety but, individuals cannot be certain of their personal views.

Bello Sani Yahuza bellokano2000@gmail.com International Islamic University, Gombak, Malaysia. 14/07/2020

Related Topics:Interest Loans Nigeria Riba

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Opinion

Workers’ Day and The Nigerian Workers In Perspective

Published

16 hours ago

May 1, 2024

Nigerian Tracker

By AbdurRaheem Sa’ad Dembo

Every 1st of May workers celebrate their day globally .It is always a day of reflection, celebration and emancipation of workers around the world.

In Nigeria,May Day as a holiday was first declared by the People Redemption Party (PRP) Government of Kano State in 1980.Afterwards it became a national holiday on May 1, 1981

Before venturing to restrict myself to Nigerian workers let me take a broad look at how May Day emerged in the world.Workers’ Day, stemmed in part, from an ancient European Spring festival,but its modern manifestations arise from the organised efforts of socialist and communist groups to establish a time for honouring workers and the working class.To be specific, the holiday was first promoted by the International Workers Association in 1904 to commemorate the slaughter of protesting labourers in Haymarket Square in Chicago ,United States of America in 1886 and it was to be a day to push for the eight-hour work day and other demands.

The date May 1st was chosen because,in the USA, the eighth- hour workday first came into effect on that date in 1886.It was predicated on the demands of the Federation of Organized Trades and Labour Unions.There was a general strike and a riot in Chicago in 1886, and eventually, the eight -hour workday was legally recognised.

Many people tend to attend the National May Day celebration in Abuja and other State capitals.The president or State Governors would be there as the case may be to make a speech, and thousand would fill the Eagle Square or state stadium to listen to the President or Governor.Some people attend number of other events that hold across Nigeria on May Day,organized by schools,labour unions,hospitals,and other various institutions.People use the day for relaxation since it is a public holiday.

In Nigeria,some people participate in nationwide marches and rallies on workers’ Day or Labour Day.More often their major concerns are usually to clamour for an increase in the minimum wage,an end to workers being left unpaid for months,the need for government action to address the high unemployment rates of recent years ,and the necessity for government action to address the high unemployment rates of recent years, and the need to move Nigeria off of over dependence on petroleum exports.

On a May Day in Nigeria, politicians and labour leaders will give out speeches on the strength and the challenges of Nigerian economy , and on how to improve it for the general good of the country.

It is significant to say that Nigerian workers both in public and private sectors are facing enormous challenges.The disparity in the salary structure and irregular payments of salary as witnessed before the coming of Buhari’s administration in 2015, where a lot of state Governors could not pay their workers for several months.

The Buhari administration ensured that bailouts were given to states to enable them offset their unpaid salaries to workers.That was a plus for the Daura man administration.

Meanwhile, President Tinubu’s administration has also sustained the legacies of prompt payment of workers salaries in the last one year.It is expected , because even as Lagos State Governor he had no history of owing workers.

In a larger context, welfare of Nigerian workers are not properly taken care of, most especially those in private sectors.There are situations where teachers in private schools are being paid peanuts as salaries,whereas the owners or proprietors charge the parents homongous school fees.This is not a hearsay I was once in that shoe as an English language teacher.

The area where the civil servants in both Federal and States are feeling the heats is the non regular payment of promotion arrears.According to sources some agencies under federal government are being owed promotion arrears since 2018.This is not a healthy practice, though some sources said the federal government has put the payment in batches and it is now being paid bit by bit.In some states the promotions are not even implemented let alone payment of its arrears

As Nigerian workers join others around the world to mark 2024 workers’ Day,it is expected that the ongoing negotiation by the federal government and labour leaders on new minimum wage will yield good results.

It is imperative to say that the Federal Government should fix the economy for the collective good and progress of the country.No minimum wage can ameliorate poverty, if there is consistent economic instability.

The level of inflation ravaging Nigerian economy is worrisome.Any minimum wage that is less than hundred thousand naira today won’t make any appreciable impacts in the lives of average Nigerian workers.

Essentially,Corruption can only be tackled effectively and holistically,if there is a reasonable living wage for the civil servants.You can’t fight corruption in a country where workers welfare and retirement package are relegated to the background.According to the human rights lawyer,Femi Falana ” corruption cannot be meaningfully fought by governments that pay poor wages to workers,owe workers and pensioners arrears.”

To the NLC and TUC leaders, providing sincere leadership is key to the quality ,emancipation and progress of Nigerian workers.Adam Oshiomhole was an example of a good labour leader in the history of Nigeria.He stood for the workers even in the face of oppression.So the current leaders should take a cue from his tireless comradeship for the benefit of Nigerian workers.

Nigeria is a blessed country and a land of prosperity; her workers have no reason for penurious lives.

Happy Workers’ Day

abdurraheemsaaddembo@gmail.com

Opinion

Minimum Wage Increment: Be Proactive My Governor.

Published

2 days ago

April 30, 2024

Nigerian Tracker

Governor Abba Kabir Yusuf

By-Abba Hamisu Sani

1st of May every year is a special day for workers in Nigeria working with the government or with the Private sector.

The main issue ahead of this year’s celebrations is the expectation of the new minimum wage Increment.

President Bola Tinubu is expected to announce the new salary scale as Vice President Senator Kashim Shatima hinted recently that by the 1st of May, the new minimum wage will be ready for implementation.

Here I want to salute the courage exhibited by the Edo State governor Godwin Obaseki who has increased the minimum wage for workers in the state from 40,000 naira to 70,000 naira ahead of the 2024 Workers Day celebrations.

This prompted my attention to urge my state governor Abba Yusuf to follow the suit of Edo State governor in this direction.

Kano workers suffered a lot in the hands of the immediate past administration, ranging from different kinds of deductions which causes uncertainty on the amount to be collected by a worker and even pensioners every month.

Governor Abba if you do the same as Obasaki, the Kano people will be happy with you as it will boost the state economy and currency circulation.

It is very imperative at this time to be proactive and not wait for the Federal government announcement before taking your step in making Kano workers happy.

Infrastructural development is quite needed but at this time social security is the most critical as it has been said “A hungry man is an angry man”.

Workers’ salaries are too low to cater to their basic needs, such as food, rent, transportation, and school fees for their children while they see politicians cruising in jeeps and other expensive cars.

Finally, Governor Yusuf remember that these workers have sacrificed a lot during the 2023 elections to see that you emerged as Kano governor.

Is very important to consider their plight at this moment of critical economic hardship.

I urged all comrades in different forms of struggle including civil society Forum to join me in pushing the Kano State government to implement a new minimum wage in a dignified manner as the Edo State governor did.

Abba Hamisu Sani is a
Media Consultant /CEO Time Base TvAfrica & Africa Press.
Can be reached via timebasetv@gmail.com

Opinion

As Prominent Nigerians Pour Encomiums on the Late Sidi Ali-Dembo

Published

3 days ago

April 28, 2024

Nigerian Tracker

Late Sidi Ali

By AbdurRaheem Sa’ad Dembo

I was not in my regular station in Minna as I took a brief trip to Abuja for an all important matter. In the night of Thursday, 25th April, 2024, I was reading in the news that Alhaji Sidi Ali had passed on. Innalillahi waiina ilaihi rajiun

He was the father of the current Spokesperson of Central Bank of Nigeria CBN, Hakama Sidi Ali (Mrs). According to the news, he was among second Republic Parliamentarians.

Many mourners have trooped to his residence at the NNDC Quarters,Hotoro GRA, Tarauni local government area of Kano State for condolences. He was buried on Friday 26th April, 2024.

Kano State Governor, Abba Kabir Yusuf in a condolence message signed by his spokesperson, Sanusi Bature Dawakin Tofa described late Ali as a trusted public servant who made sacrifices to ensuring that Nigeria remains a united and indivisible country. The Governor acknowledged the positive contributions of the deceased as a Senator in the Second Republic in shaping the Parliament and the overall development of democracy in the country. He extended condolences to his families and prayed for those he left behind to have the courage to bear the loss.

Former President Muhammadu Buhari has mourned the late author describing him as a creative writer. Part of his condolences reads: “I am pained by the demise of the noted journalist, author, and politician, Sidi H. Ali, who won my heart and that of many through his critical writings and the two books he wrote about me.” The former President equally expressed his condolences to his family and admirers.

Deputy President of the Senate, Senator Barau Jibrin has extolled the virtues of the deceased, saying he contributed immensely to the development of the country in both political and media spheres.

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According to a statement from his Adviser on Media and Publicity, Ismail Mudashir the deputy Senate President describes Ali thus: ” The death of our late elder statesman,Alhaji Sidi Ali,is not a loss to his immediate family alone, but a monumental loss to the country as a whole.He served our country meritoriously in different capacities and displayed his wealth of talent for the unity and growth of the nation.”

Barau was at their Hotoro GRA residence in Kano to commiserate with his family and urged them to remain united, and emulate the good virtues of their late father.

The Minister of Information and National Orientation, Mohammed Idris in a statement described late Sidi Ali as a respected veteran journalist, prolific writer, and a politician whose contributions to the field of journalism, literature, and politics have left an indelible mark. He added that Alhaji Sidi Ali, throughout his career, exemplified high standards of professionalism and integrity and provided invaluable insights with historical references into the pressing issues of time.

The minister said that as the nation mourns the loss of Alhaji Sidi Ali, his wisdom, compassion, and dedication to his craft would continue to inspire generations to come.

In the words of Senator Shehu Sani, the mournful message reads:
“I received the sad news of the demise of a renowned Elder statesman, author, journalist, politician and historian, Alhaji SIDI ALI. Apart from Tafawa Balewa and Sardauna of Sokoto, no other Northerner was closely known by historic figures and World leaders in the 60s and 70s like the late SIDI. The late Elderstateman was personally known by President JF Kennedy, Martin Luther King, Jr. Malcom X, Muhammad Ali, Kwame Nkrumah and many others.
The late Sidi Ali was a human library and a prolific writer. He was one man who could recall every event that happened in Nigeria’s history from independence till date. A great loss. My condolences to his family and the good people of Kano State.
May Allah grant him Aljanna firdausi, Amin.”

In the same vein, Lauretta Onochie, the Former Personal Assistant to Former President Muhammadu Buhari on Social Media, on her Facebook post also mourned honourable Sidi Ali. According to her, he was a great journalist, a great writer and a father to her.

One of his daughters said “Baba was a people’s person , he loved people generally across all strata. A humanitarian to the core.
A true Nigerian.
We grew up wearing clothes from MKO Abiola, Oloye Olusola Saraki, and many others”

According to a family source”The late Senator Joseph Tarka family and the people of Benue state were at the deceased residence on a condolence call. The Sidi Ali family and the Tarka Family have a long standing decades of close relationship. Senator Joseph Tarka is the father of the SGF”.

The former Registrar/Chief Executive National Examinations Council NECO, and the current Vice Chancellor, Khalifah Isyaku Rabiu University,Kano Professor Abdulrashid Garba also paid a condolence visit to the family.

Professor Hannatu Sabo, the Jigawa State Commissioner for finance, budget and planing also visited personally to sympathize with the family. Alhaji Sule Lamido, the former Jigawa State Governor,
Former Minister of State for works and Housing, Hon Umar Ibrahim El-Yakub , Senator Gumel,
A member of Federal House Representatives, Alhassan Ado Doguwa and others in the National Assembly from Kano State,Former Senator Aminu Inuwa, Professor Dandago,Kano Commercials ,traders and Academic communities were also fully represented during the condolence visit.

The elder statesman spent years serving the Nigerian International Press Centre, Ministry of Information and National Broadcasting Commission, among other critical institutions.

He travelled wide and his vast experience influenced his affection for journalism and communication. Ali authored 19 books, one of which is “Corruption in High Society”

According to Daily Trust Newspaper (27th April, 2023) “Ali was born in Kano but travelled to Ghana, where he met the country’s political leader, Kwame Nkrumah, who arranged for him to travel to London, and later, the United States to further his education”

In his 2018 birthday message, Former President Muhammadu Buhari established that Ali spent most of his life serving the country as a public affairs officer, “most remarkably for ensuring accurate and balanced information on government activities during and after the civil war.” (PR Nigeria news)

Personally, based on what I have read about late Sidi Ali, one can conclude that he was a fearless and pragmatic writer. It was reported that he was arrested by the regime of General Yakubu Gowon for writing an article against the Federal Government. A good writer is always sensitive and can’t look away when things are not properly done. To me, a coward can’t be a writer. The responsibility of an average writer is to use his pen to draw the attention of leaders to social anomalies in the society with a view to correcting them.

Honourable Sidi Ali was an APC Stalwart and a member of party’s Elders Committee in Kano State. He died at the age of 86 and was survived by children and grandchildren. May Allah forgive his shortcomings and grant him aljannah firdaus.Ameen

abdurraheemsaaddembo@gmail.com

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