The world is getting older. Population is growing rapidly. Comparatively, production is increasing more than the population. Resources are consumed wildly. Products are diversifying. Luxury and comfort are increasing. Life is flowing too fast. Advances in transport and communication have greatly increased the interaction between people and communities. Science and technology advanced. But many people in the world suffer from poverty, wars, terror and many other reasons. More than half of the world's population is not happy.

Islam is a religion built upon guiding principles. Principle of Iman is the most fundamental upon which other principles stand, due to the fact that professes of the Kalimah (to testify that there is no deity worthy of worship except Allah) is expected to manifest in man’s actions through complete submission and obedience to Allah by reflecting in the practical life of a Muslim socially, politically, materially and economically. The central focus of Islam is to make man to have positive attitude towards life, to take what is lawful, engage in a lawful business and earn lawful income as stated in the Glorious Qur’an. But seek, through that which Allah has given you, the home of the Hereafter; and [yet], do not forget your share of the world. And do good as Allah has done good to you. And desire not corruption in the land. Indeed, Allah does not like corrupters (Qur’an, Surah Al-Qasas 28:77). 

Islamic economic system was introduced with the advent of Prophet Muhammad (May the peace and blessings of Allah be upon him) in Arabian Peninsula. The economic system was institutionalized based on Shari’ah Law which advocate justice and equity for the betterment of both the have and have not. Shari’ah in Islam is a manual which Almighty Allah has given to mankind to organise his life. Yaseen, pointed that Obedience to the Laws of Allah serves as a basement for the harmonious life of man with the rest of the world. He stressed that Shari’ah specifies the fundamentals of Islamic economic system. These fundamentals are built on sound moral norms that are practically sustained through Islamic oriented Economic system. Sustainable development is all about development of today without having negative effect on the development of tomorrow. It is the declaration of the United Nations on the 25^th September, 2015 in which its objectives among others includes: 

• To end poverty in all its forms every where 

• To end hunger, achieve food security and improve nutrition, and promote sustainable agriculture

• To ensure healthy living and promote well-being for all at all ages

• To ensure inclusive and equitable quality education and promote life-long learning opportunity for all

• To promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all etc. (United Nations Association of Greater Philadelphia)

It is against this background that this paper studied the notion of sustainable development from both western and Islamic perspective, and Islamic economic system under which notion of Halal, Haram, Riba and Zakat are discussed as well as the implication of Islamic economic system generally on Nigerian society and Muslims in particular.

Conceptualizing Islamic Economic System

The Islamic economic System provides welfare and peace for society. The Islamic economic system has various and lots of definitions, but I have summarized it as thus; Islamic Economic System: There are laws made by Almighty Allah to design individual and society economic relationship and principles of life in a certain and unique system [1].

It is not an imitation of other economic systems. There are some ways in which other economic systems may look alike with Islamic economic system, some terms may be the same but this still cannot spoil the uniqueness of Islamic economic system. It differs from the other systems. Islamic Economic System, it is one within the others in life, and it is a reality. Human character, social life, and Islamic Economic System are compatible with human brain and body. There are sources of Islamic Economic System said by Tusi. Islamic economics is a set of fundamental rules (institutions) structured on the Unity of Creation, as discussed above, that the Almighty has prescribed for those that choose to follow His Path. [2] Islamic Economic System older than Socialism, Capitalism, Mix Economics and their different applications.

Islamic economy has a rich heritage both institutionally and theoretically. A believer is a person who is ready sacrifices his country or he needs to be like that. If his country is in the condition that it cannot pay up its debt, he is ready to give 39% out of his 40%, not one part out of his properties, or he should be ready to give all of it. These are qualitative of a true believer and we have some examples of this in our history.

Muslim economists and scholars have tried as much as possible to define Islamic economics from their own perspectives and understanding. Among the prominent definitions available are the ones from Mannan, which defines Islamic economics as a “social science, which studies the economic problems of a people imbued with the values of Islam”. Similarly, Khan opined that “Islamic economics is aimed at the study of human falah achieved by organizing the resources of the earth on the basis of cooperation and participation”. The definition provided by Chapra [3] seems more elaborate. It stated that it is “that branch of knowledge which helps realize human well-being through an allocation and distribution of scarce resources that is in conformity with Islamic teachings without unduly curbing individual freedom or creating continued macroeconomic and ecological imbalances”. 

From the foregoing definitions, they revealed the nature of Islamic economics as divine, ethical, humanitarian and promote moderation in the utilization of resources of the world to achieve ultimate goal of human existence. Its study is guided by judicious utilization of resources on the basis of cooperation and participation for the purpose of achieving human well-being (falah) in both worlds. As a result, the scope of IE by various scholars has been regarded to be very comprehensive more than the secular economics. This is in view of the fact that Islamic economics focuses on the totality and integrated viewpoints of human life.

Islamic economic system is a just and balance system or a monetary system which caters for the agricultural and material needs of mankind. It is an economic system established on the Divine rules and regulations. It is in this direction that Islamic economic system set out to address justice, righteousness and morality in the accumulation of wealth. It is a system that is meant to correct excessiveness in profit making as in the capitalist economic system which is devoid of spiritual element in accumulating wealth. The capitalist economic system which promote Riba (usury) deceit and fraud. Its’ features revolve around limitless wealth accumulation by individuals, non-interference by the state in the economic rather than individual controls the economic system. Business system protect the capital rather than morality, interest charges on the debtor by the creditor are immoral and the wealthy dictates the economy of the state and the capitalist economy depends largely on usury (Riba).

Socialism or Communism is another form of economic system which plays down the material nature in man and tried down the economic activities to the state system like the capitalist lacks focus on spiritual needs of man. The features of this economic system empower the state as the owner and sole means of production, and hence controls the economic system, distribute wealth to the citizen and it is a Godless society due to the fact that it failed to establish justice in the classless society. However, the right of individual to accumulate wealth is ignored. However, Islamic economic system comes with reforms which focuses on the protection of both spiritual and material needs of mankind, it encourages the individual to pursue their economic needs with the spectrum of spiritual guide, the fear of Allah (piety) and it creates avenue for the development and improvement in social cohesion among the classes of the society. Islamic economic institutions represent the conscious and deliberate efforts by Muslims to translate Islamic economic ideas and thoughts into reality. In this connection, Khan and Ayub identify Islamic economic institutions to include: Islamic banks, Zakah (compulsory religious levy-tax), Takaful (Islamic insurance), Waqf (Endowment/Foundation) and Hisbah (Market supervision). Wealth accumulation is not prohibited. In Islamic Economic System wealth accumulation and becoming rich is allowed, moreover, it is even encouraged. Almighty Allah says in the Glorious Qur’an: 

• And so, human – when his Lord tries him by bestowing favors on him – says: “my Lord has honored me”. (Qur’an, Surah Al- Fajr 89:15).

Halal and Haram 

In Islamic Economic System, all economic activities are grouped into permissible (Halal) and prohibited (Haram) transaction. Economic goods, food items, inheritance, inheritor’s properties, rights etc., all have their rulings spelt out in the Holy Qur’an.

Utility and Benefit 

IES is making the public to benefit freely from personal or collective events and public’s basic targets are satisfied. We need goods and services to satisfy our wants as defined earlier. However, Islamic scholars tend to confuse needs with wants. They equate the two, and classify needs into three categories, providing linkages between them. To begin with, there are the “daruriyat” or necessities of life like food, clothing, shelter, education, health care and so on. What would improve the quality of the necessities is regarded as “hajiyat” i.e. complements or improvements. Lastly, we have “tahsiniyat” or the needs whose satisfaction accords us social status or recognition. The latter two are seen as a sort of expansion of the necessities of life. The three are thus interlinked and picture a graded improvement in the quality of life. The focus of attention is on goods that satisfy needs falling in each category. The needs remain the same but their satisfaction improves as we move higher up on the scale.

Interest, Hoarding, Harmful Products and Services are Forbidden 

Usury (interest), alcohol, gambling, game of chance and other gambling related economic events are forbidden. The Allah in the Glorious Qur’an says: “As to those who consume interest, (even though they seem, for a time, to be making a profit), they turned out like one whom Satan has bewitched and confounded by his touch, (and they will rise up from their graves in the same way before Allah). That is because they say interest is just lie trading, whereas Allah had made trading lawful, and interest unlawful. To whomever an instruction comes from his Lord, and he desist (from interest), he may keep his past gains (legally), and his affair is committed to Allah (if he repents sincerely and never again reverts to taking interest, he may hope that Allah will forgive him). But whomever reverts to it (by judging to be lawful), they are companions of the fire; therein they will abide (Al-Baqara 2/275).” and “Allah deprives interest (which is thought to increase wealth) of any blessing and blights it, but makes alms-giving (which is thought to decrease wealth) productive. Allah does not love any obstinate unbeliever (who regards what Allah has made lawful as unlawful, or vice versa), any obstinate sinner (Al-Baqara 2/276).” And “You who believe! Keep from disobedience to Allah and try to attain piety in due reverence for Him, and give up what remains (due to you) from interest if you are (in truth) believers. – (Al-Baqara 2/278, 279)” and “You who believe! Intoxicants, games of chance, sacrifices to (anything serving the function of) idols (and at places consecrated for offerings to any other than Allah), and (the Pagan practice of) divination by arrows (and similar practices) are a loathsome evil of Satan’s doing; so turn wholly away from it so that you may prosper (in both worlds) – (Al-Ma’ida 5/90, 91). Allah’s messenger (May the peace and blessings of Allah be upon him) has cursed the one who receives interest and the one who pays it, the one who records it and the two witnesses to the transactions and He (May the peace and blessings of Allah be upon him) said: they are all sinners. One another is hadith about hoarding:” Whoever hoarded food for more than forty nights have become for from Allah and Allah is far from him” [4]. 

Free Market and Competition but no Fraud and Corruption 

Competition and free market is allowed in Islamic economic system. However, extreme pricing and unjust competition is prohibited. The interference of monopoly in the prices of food items affects free market therefore, it should be avoided. The Allah says in the Glorious Qur’an:” “But seek, by means of what Allah has granted you, the abode of the hereafter (by spending in alms and other good causes), without forgetting your share (which Allah has appointed) in this world. Do good to others as Allah has done good to you (out of His pure grace) Do not seek corruption and mischief in the land, for Allah does not love those who cause corruption and make mischief.” – (Al- Qasas, 28/77, Al-Baqara 2/60, Al-A’raf 7/74, Hud 11/85 Ash-Shu’ara 26/183, Ankabut 29/36)” and” Oh my people! Give full measures and weight, with perfect equity, and do not wrong people by depriving them of what is rightfully theirs and do not go about acting wickedly in the land, causing disorder and corruption” (Hud 85, Israa 35, and Ash-shu’ara 181). Prophet Muhammad (May the peace and blessings of Allah be upon him) says:” A strong believer is better than a weak one”. And He (May the peace and blessings of Allah be upon him) said:” Whoever cheats us is not one of us,”. The person doing black-market business is doing wrong.” And, “Honest businessman will be resurrected under the shade of Allah when there will be no shade except, He’s”. 

Even Development 

Islam promotes progress and development in all areas. Prophet Muhammad (May the peace and blessings of Allah be upon him) said, "A person who has the equivalent of two days is in losses." This means; your next day should be better than before. The development of a country is determined through social and economic contributions of that country. Development and growth are measured through the adjustment of economics situation in the country. Namely, institutional economic structure is taking important place in Islamic Economics. The availability of resources, technology and the efficiency of their utilization determine the level of economic development and the rate of economic growth. Technological progress is encouraged in Islam since this provides the means by which humans can satisfy their material needs and thus remove the economic barriers on the path to their spiritual progress. Moreover, institutions (rules and norms plus their enforcement) have been found to play a crucial role in determining total factor productivity (TFP). The closer the compliance of actions—in production, exchange, distribution, and redistribution—of society with the governing rules, the higher the total factor productivity, the rate of growth, and the level of economic development. We now turn to important Islamic values, such as abstinence from hoarding of wealth, and summarize the rules for: property rights, market behaviour, exchange and trade, and contracts and trust [2].

According to the Islamic understanding, stasis collapses the social and economic system. Therefore, progress and development should be continuous. 

Legitimate Profit in Islam is Essential 

Islamic economic system will not harm people if there are profits in a particular business and if people’s right, institutional right, and government/state right are properly maintained. Profit must be legitimately minimized without violation, otherwise it will be prohibited. Prophet Muhammad (May the peace and blessings of Allah be upon him) continue at above hadith and says:” An honest businessman will be resurrected among the Prophets, Martyrs and the pious ones’’. Islamic provisional Imam A’zam Abu Hanife decided: If one is fond of cheating between a seller and a buyer, the oppressed must be given his due rights. [5].

Sacred Motivation 

The social and economic activities of people in Islam are hereby guided and directed by the teachings of Islam. In Islamic economic system, one has to act according to the teachings of Islamic faith by doing what he is expected to do and avoiding its prohibitions (that is, Halal and Haram). One is also expected to act according to the rules of the state he lives in. [1]. For believers, their religion is sacred. When they abide by the rules of their religion, they expect their reward only from the god of faith. Muslims also believe that when they obey the rules of Islam, they will be rewarded by Almighty Allah both in the Hereafter and in the world. Therefore, everyone does worship and goodness according to the degree of their faith. 

Income Distribution and Zakat 

In Islamic Economic System, the income distribution is generally arranged in two ways; before production and after the production. Zakat and charities, when given to the poor (law income earners) by the rich people, it reduces the difficulties of the poor people. It closes the gap between the riches and the poor, but in a situation whereby the rich does not give out Zakat, the poor will become poorer and the rich becomes richer. Giving Zakat, charity and foundations should be established in our societies in order to be used as means of alleviating poverty level. The Almighty Allah says in the Glorious Qur’an: “If you dispense your alms openly, it is well, but if you conceal it and you give it to the poor (in secret), this is better for you; and Allah will make it an atonement to block out some of your evil deeds, Allah is fully aware of all that you do”. (Baqara 271, 273, Taubah 60) and says:” … and spend (in Allah’s cause and for the needy) out of whatever we provide for you before death comes to any of you and he says ‘’ My Lord! If only you will grant me respite for a short while, so that I may give alms and be one of the righteous (Al- Munafiqun, 10) and “They established the prayer in conformity with its conditions and paid what is due to the needy out of their belongings and in the hereafter, they have certainty of faith (Suratul Lukman: 4, Suratul Haq 74, Suratul Fusilat 41, Suratul Ahzaab 33, Maa’ida 55, Nur 56, Mujadala 13) these verses have passed through the Glorious Qur’an many times. Also, Prophet Muhammad (May the peace and blessings of Allah be upon him) says:” He is not of us, he who sleeps while his neighbor is hungry.” There is no Muslim or non-Muslim distinction in this hadith. And He (May the peace and blessings of Allah be upon him) says:” There are five (5) Pillars of Islam: 

• Testifying that there is no deity of worship except Allah (cc), and Prophet Muhammad (May the peace and blessings of Allah be upon him) is His messenger

• Observing the five daily Salat

• Giving Zakat

• Performing Pilgrimage for those who are due

• Fasting in the Month of Ramadhaan”

Sources of Income in Islamic Economic System 

The legitimate and accepted sources of income in Islam are:

• Agriculture

• Trade/Business

• Mining

• Labour

• Industrial Works and Vocational Skills 

• Booty

• Ikta

• Hunting

• Zakat (Alms) and Sadaqa (Charity) 

• Others (wakf, Kharaj,Jizya Fai,Rukaz, Luqta, Anwal) 

Theorizing Sustainable Development 

Sustainable development is development which meets present without compromising the ability of future generations to meet theirs. According to Coomer [6], sustainable society is one that lives within the self-perpetuating limits of its environment. That society recognizes the limits of growth and looks for alternative ways of growing. It focuses on improving the quality of life of the earth’s citizens without increasing the use of natural resources beyond the capacity of the environment to supply them indefinitely. By this, one would understand that there is no agreed definition of ‘sustainable development’. For, it is an emerging concept attempting to assimilate the dynamism of a process of change that cannot ignore local concerns, needs, and interests. Being relatively new, it evolves as we learn to grasp its wider implications for different aspects of our lives. The key question here is: what it is that we want to sustain. One comes across three broad answers to the question in the literature. According to Zubair Hasan, Sustainability implies:

• Maintaining the long-run rate of economic growth

• Achieving inter-generational equity in the use of the natural resources

• Restricting as far as possible the increase in pollution for maintaining the present quality of environment

Therefore, the importance of sustainable development is to consider to the future generation without compromising the ability of their needs. Hence, resources must be preserved and protected from pollution, waste, and exploitation in order to pass it on in good shape to the next generation.

Islam and Sustainable Development

Sustainable development is not a new concept to Muslims. The Qur'an and the Hadithprovide the framework for the spiritual and physical welfare of humanity. There are over five hundred verses in the Qur'an giving Muslims guidance on matters relating to the environment and how to deal with it, and there are numerous examples from the Prophet Mohammed's life (May the peace and blessings of Allah be upon him) and his sayings, which provide a model for justice and equity. Sustainable development from an Islamic perspective is a development that seeks to establish a balance between the environment, economy and social dimensions. It means the balanced of consumer welfare, economic efficiency, achievement of ecological balance in the framework of evolutionary knowledge-based, and socially interactive model defining the social justice, [7].

Sustainable development may also be seen from an Islamic perspective, as a multi-dimensional process that seeks to strike a balance between economic and social development on one side, and the environment on the other. It seeks for humans to use resources in the best possible way, accounting for the environment upon which those resources rely. The goals of sustainable development are along the lines of Islamic goals, which call for avoiding waste and the depletion of resources, environmental pollution, and promoting reforms and rationalization of natural resources. However, from the Islamic view of points, sustainable development is seen human as a representative of Allah, The Almighty on the earth and provided with abundant resources to benefit himself without harming and being selfish in monopolizing them. This has now rooted and becomes the environmental attitude which has brought modern civilization to the brink of disaster. Many have, in one way or the other, are damaging the environment to serve their capricious interest by risking the interest of the future generation all in the name of science and technology. It is quite evident, that the depletion of natural resources and the deterioration of human-environment have let out technological change and is now unable to control the unruly spirit. Human Beings are Allah’s favourite creation which has mind to think. In Islam, the interaction of human environment is directed by nation of human Being as Khulafa on the earth purposely with full of responsibility. 

In Islam therefore, humanity are representatives of Allah on Earth (Khulifa’), they are mere managers and not owners, beneficiaries and not disposers and destroyers. Islamic lifestyle means living in peace and harmony with all creatures, and being active in promoting harmony among individuals and social groups and the environment and to establish social justice in order to ensure sustainable development.

Attaining Lasting Sustainable Economic Development in Nigeria

To attained sustainable economic development, the Nigerian government and other stake holders in the economic sector change the economy policies to reflect practice the model enshrined in the Islamic economy system. The Islamic economic system is the only economic system that is reliable, since it is divinely ordain by Allah. With the economic crisis in Nigeria, the Islamic economic system would be the best model for Nigeria in order to get out of it current economic mess. The Islamic economic policies analyzed above, if practice by individual Muslims and government the Nigerian society would be free from the present security challenges, infrastructure, poverty, food scarcity and unemployment. 

In view of the above, the Islamic economic system has the capacity and addresses wealth distribution base on equitable ground, and it ought to contribute to the growth and development of an individual and the society at large. It can also be used as a vehicle for the reduction of the level poverty, the creation of employment opportunities and the empowerment of the timing youth population irrespective of gender in the society. The Islamic economic system, if properly implemented, it will help in attaining sustainable economic development. Not only that, it is imperative for government at all in the country to as a matter of fact incorporate into its economic policy the Islamic economic system, this is because of it discouragement of usury (Ribah). This system will help in many ways in attaining the sustainable development goals, if adopted and put into practice perfectly, particularly among Muslims since it is an ordain principle of wealth or income distribution formula from Allah the Almighty.

1. Drews, P.D. “Civilization and the Culture of Islam.” 2014, https://my.vanderbilt.edu/robertdrews/files/2014/01/Chapter-TwentyTwo.-Abbasid-Civilization-and-the-Culture-of-Islam.pdf

2. Askari, Hossein, et al. Understanding Islam: Development, Economics and Finance. 2013. SSRN, https://ssrn.com/abstract=2358945. doi:10.2139/ssrn.2358945.

3. Chapra, M.U. What Is Islamic Economics? Islamic Research and Training Institute, Jeddah, 2001.

4. Ahmed Bin Hanbal. Al-Müsnad. Müessesetü Kurtuba, Egypt, n.d.

5. Al-Shaybani, I.M. The Muwatta of Imam Muhammad al-Shaybani. Revised ed., Turath Publishers, 2004.

6. Coomer, J. Quest for a Sustainable Society. Pergamon, Oxford, 1979.

7. Aburounia, H., and M. Sexton. Islam and Sustainable Development.