Islamic Construction Contract (Istisna’): An Alternative to the Nigerian Infrastructure Transformation

Abstract

Islamic finance is an alternative system substituted to the colonial-enforced conventional system, which was found to have a lot of cultural and principle mismatches to the order of the Muslim world, divinely directed to run on the analyzed principles of Islam. The system established principles to manage the constructional contract suitably to ensure justice and equitable benefit of both parties of the contract. The paper observed limited application of the instrument in Nigeria despite the potential of the tool in most of the Nigerian infrastructure sectors of Education, Transportation, Health, Agriculture, Mining, Mineral resources, and a host of others meant to ensure the well-being of the citizens. Furthermore, limited awareness and misconception are found among most citizens, which hinder ample investment and smooth operation of the model despite its legality in Nigeria's financial system. These and other problems trigger the work designed on the qualitative research method to shed light and highlight its opportunities in the country. Hence, the paper recommends that a mass awareness campaign should be advanced on the application of the tool to attract the interest of investors from within and abroad of the country; similarly, Federal, state, and municipal government agencies should offer equitable opportunities for alternative tools in their construction contracts when building new Infrastructure, likewise, cooperate and individual entities, are having opportunities to use the tool for advancing their economic standard and execute projects of their choice conveniently.