THE IMPACT OF HALAL AT THAYYIB AND CONSUMPTION ETHICS IMPACT ON ECONOMIC GROWTH: AN ECONOMIC TAFSIR AL-BAQARAH:168

Abstract

This study investigates the contribution of Islamic banks and Islamic windows to thegrowth of the Nigerian economy. Data were obtained using structured questionnaires.379 copies of questionnaires were administered based on the sample size obtainedvia the use of Taro Yamane formula. 367 questionnaires were successfully retrieved.Variables such as deposit activities, loan activities, and perception of bank employeeswere also adopted as explanatory or independent variable and dependent variablerespectively. To support the study hypothesis were also formulated. For the analysis,measures of central tendency (tables, frequency and percentages) and inferentialstatistics (Logit Regression) were used. The result revealed that the variables (i.e.deposit and loan activities) have a positive impact on the growth of Nigeria’s economybecause the probability values of the variables (P=0.003 and 0.019) were less thanalpha (α =0.05) level of significance. In other words, this implies that Islamic banksand windows have largely supported private consumption, business investments of itscustomers, aid government spending via sharia bonds (sukuk) to fund developmentalprojects of its customers. The study concludes that Islamic banks and windows havecontributed towards the growth of the Nigeria’s economy. Furthermore, the studyrecommends that there is need for creating the necessary legal framework to ensureits smooth operations, intensify efforts on creating public awareness, rolling out moresharia compliant products that can take care of the peculiarities that exist in businessenvironment and training and retraining of staff on effective Islamic banking.