An Appraisal of Mudarabah System of Islamic Investment as a Panacea to Financial Exclusion in Nigeria

Abstract

This paper analyses the expected role of mudarabah system of Islamic investment as a means of tackling the prolonged problem of financial exclusion in Nigeria. The study employs a desk research method to describe the level of financial exclusion in Nigeria and forecasts the future of it, most especially with the coming of Jaiz Bank as a full-fledged Islamic bank that uses mudarabah as one of its investment instruments.  This paper concludes that Jaiz Bank and other conventional banks that offer Islamic window of banking operation should give more emphasis to Mudarabah system of investment as it offers the poor and disadvantaged members of the society with entrepreneual ability to come out from the poverty line and become fully included financially. These poor and disadvantaged people suffer more from the menace of financial exclusion.