The financing problems facing the agricultural sector in Nigeria and the prospect of waqf-muzara’ah-supply chain model (WMSCM)

The financing problems facing the agricultural sector in Nigeria and the prospect of waqf-muzara’ah-supply chain model (WMSCM)

Agriculture sector becomes important sector in many developing countries including in Nigeria. The contribution of agricultural sector to the development of Nigeria is considerable. This important sector was the economic backbone upon which the government of the Federal Republic of Nigeria relied fo...

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Main Authors: Oladokun , Nafiu Olaniyi, Mohd Thas Thaker, Mohamed Asmy, Mohd Thas Thaker, Hassanudin, Allah Pitchay, Anwar
Format: Article
Language:English
Published: Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga Yogyakarta 2014
Subjects:
HG Finance
S Agriculture (General)
Online Access:http://irep.iium.edu.my/42907/
http://irep.iium.edu.my/42907/
http://irep.iium.edu.my/42907/1/Olaniyi_et_al._2015.pdf
id iium-42907
recordtype eprints
spelling iium-429072017-06-13T06:11:22Z http://irep.iium.edu.my/42907/ The financing problems facing the agricultural sector in Nigeria and the prospect of waqf-muzara’ah-supply chain model (WMSCM) Oladokun , Nafiu Olaniyi Mohd Thas Thaker, Mohamed Asmy Mohd Thas Thaker, Hassanudin Allah Pitchay, Anwar HG Finance S Agriculture (General) Agriculture sector becomes important sector in many developing countries including in Nigeria. The contribution of agricultural sector to the development of Nigeria is considerable. This important sector was the economic backbone upon which the government of the Federal Republic of Nigeria relied for its foreign exchange and revenue. A country was once a net exporter of agricultural products. However, since the discovery of oil in the early 1960, agricultural productivity has continually decreased due to many problems, especially related to financial aspect. Several programmes and policies have been adopted by various administrations to find solution to the dwindling agricultural productivity but to no avail. These solutions have mainly focused on alleviating the financial problems the farmers face. Usually financial intermediaries including banks would provide micro-financing to the farmers but with high interest rates coupled with collateral requirements. Hence, this mode of financing has not produced any significant result. This study will therefore examine problems facing agricultural sector in Nigeria with special emphasis on its financial aspect and propose a Waqf-Muzara’ah–Supply Chain model (WMSCM). Under this model, Waqf fund will be used for providing financial facility of the farmers. The relationship between farmers and financial institutions is based on partnership where profit and loss will be shared by both parties. This will enhance commitment by and cooperation among both parties to ensure the success of the business. Furthermore, the issues of collateral and high interest rate that constrain the financial ability of the farmers and their agricultural output are inherently solved by the model. Moreover, the model has features of investment and risk diversification for both the financial institutions and the farmers that will lead to high agricultural productivity and employment generation in the economy. Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga Yogyakarta 2014 Article PeerReviewed application/pdf en http://irep.iium.edu.my/42907/1/Olaniyi_et_al._2015.pdf Oladokun , Nafiu Olaniyi and Mohd Thas Thaker, Mohamed Asmy and Mohd Thas Thaker, Hassanudin and Allah Pitchay, Anwar (2014) The financing problems facing the agricultural sector in Nigeria and the prospect of waqf-muzara’ah-supply chain model (WMSCM). Global Review of Islamic Economics and Business, 2 (1). pp. 1-14. ISSN 2338-2619 http://ejournal.uin-suka.ac.id/?journal=grieb&page=index
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG Finance
S Agriculture (General)
spellingShingle HG Finance
S Agriculture (General)
Oladokun , Nafiu Olaniyi
Mohd Thas Thaker, Mohamed Asmy
Mohd Thas Thaker, Hassanudin
Allah Pitchay, Anwar
The financing problems facing the agricultural sector in Nigeria and the prospect of waqf-muzara’ah-supply chain model (WMSCM)
description Agriculture sector becomes important sector in many developing countries including in Nigeria. The contribution of agricultural sector to the development of Nigeria is considerable. This important sector was the economic backbone upon which the government of the Federal Republic of Nigeria relied for its foreign exchange and revenue. A country was once a net exporter of agricultural products. However, since the discovery of oil in the early 1960, agricultural productivity has continually decreased due to many problems, especially related to financial aspect. Several programmes and policies have been adopted by various administrations to find solution to the dwindling agricultural productivity but to no avail. These solutions have mainly focused on alleviating the financial problems the farmers face. Usually financial intermediaries including banks would provide micro-financing to the farmers but with high interest rates coupled with collateral requirements. Hence, this mode of financing has not produced any significant result. This study will therefore examine problems facing agricultural sector in Nigeria with special emphasis on its financial aspect and propose a Waqf-Muzara’ah–Supply Chain model (WMSCM). Under this model, Waqf fund will be used for providing financial facility of the farmers. The relationship between farmers and financial institutions is based on partnership where profit and loss will be shared by both parties. This will enhance commitment by and cooperation among both parties to ensure the success of the business. Furthermore, the issues of collateral and high interest rate that constrain the financial ability of the farmers and their agricultural output are inherently solved by the model. Moreover, the model has features of investment and risk diversification for both the financial institutions and the farmers that will lead to high agricultural productivity and employment generation in the economy.
format Article
author Oladokun , Nafiu Olaniyi
Mohd Thas Thaker, Mohamed Asmy
Mohd Thas Thaker, Hassanudin
Allah Pitchay, Anwar
author_facet Oladokun , Nafiu Olaniyi
Mohd Thas Thaker, Mohamed Asmy
Mohd Thas Thaker, Hassanudin
Allah Pitchay, Anwar
author_sort Oladokun , Nafiu Olaniyi
title The financing problems facing the agricultural sector in Nigeria and the prospect of waqf-muzara’ah-supply chain model (WMSCM)
title_short The financing problems facing the agricultural sector in Nigeria and the prospect of waqf-muzara’ah-supply chain model (WMSCM)
title_full The financing problems facing the agricultural sector in Nigeria and the prospect of waqf-muzara’ah-supply chain model (WMSCM)
title_fullStr The financing problems facing the agricultural sector in Nigeria and the prospect of waqf-muzara’ah-supply chain model (WMSCM)
title_full_unstemmed The financing problems facing the agricultural sector in Nigeria and the prospect of waqf-muzara’ah-supply chain model (WMSCM)
title_sort financing problems facing the agricultural sector in nigeria and the prospect of waqf-muzara’ah-supply chain model (wmscm)
publisher Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga Yogyakarta
publishDate 2014
url http://irep.iium.edu.my/42907/
http://irep.iium.edu.my/42907/
http://irep.iium.edu.my/42907/1/Olaniyi_et_al._2015.pdf
first_indexed 2023-09-18T21:01:08Z
last_indexed 2023-09-18T21:01:08Z
_version_ 1777410631005110272

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