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COVID-19: Dealing With The Economic Implications of The 2020 Eid-al-Adha

Islamic Finance	1517 VIEWS
Islamic Finance
1517 VIEWS

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Friday, June 31 , 2020 / 7:00 PM / Bukola Akinyele for WebTV / Header Image Credit: WebTV

Eid-al-Adha is a time for forgiveness, kindness and compassion which are the qualities and essence of Islam. As the world continues to face the unprecedented circumstances and health challenges caused by the novel COVID-19, the impact can be felt on the socio-economic activities of Muslims observing the 2020 Eid El-Kabir .

The restriction on global movement have limited the number of people performing Hajj, as well as those participating in congregational prayers, parties and other social interactions. Islamic scholars note that the restrictions and bans on social gatherings was for the benefit of all as part of measures to mitigate the risk of the pandemic. WebTV's Islamic Finance anchor Bukola discussed with Dr. Aliyu Dahiru Mohammed, the Deputy Director, Training and Linkages, International Institute of Islamic Banking and Finance, Bayero University Kano, BUK on the economic value chains of Eid-Il-Adha.

He started by highlighting the significance of Eid-Il-Adha, and noted that there are many aspects of the period of Hajj but the most significant was the sacrifice and slaughtering of animals which was an essential requirement for all Muslims adult who can afford it. Dr Mohammed stressed that Eid-il-Kabir has been a long tradition since the time of Prophet Ibrahim , when he was ordered in a dream to slaughter his son Ismail who was later saved by Allah. Angels brought a ram to Prophet Ibrahim which stopped him from sacrificing his son Ismail.

According to the World Health Organization, as at today July 31^st, 2020 globally COVID-19 case figures rose to 17,565,425 and total death figure was 678, 356 , while the total figure of those that recovered was 10, 998, 945.

In Nigeria, the NDDC report on COVID-19 showed that total confirmed cases stood at 42, 689, discharged cases 19,270 and death 19,270 and death cases 878.

Speaking on the economic implication of Eid-il-Kabir, the Islamic finance expert noted that over 100 million Muslims, assuming they will slaughter 1 million large animals (cattles, and camels) at an average price of N150,000 and another 1 million small animals (sheep and rams) at an average price of N50,000 would be N150billion plus N50billion bringing the total potential revenue on animals at N200billion.

The projected revenue is relatively large and mostly additions to rural economic cash flows. Dahiru said, "It is a practical expression of one's gratitude to Allah for His blessings. The Quran says: "Thus have we subjected these (animals) to you so that you may express your gratitude". Dahiru noted that, the practice of sacrificing animals has comprehensive economic implications for livestock raisers in rural and urban communities.

He said "Animal sacrifice involves both value -in- use and value- in exchange. Value- in- use means the intrinsic quality of a commodity to satisfy human wants". Speaking further, he said the multiplier effect was always large during the Eid Adha period. He said, the Eid period would be characterized by exchange of value in use and in exchange through various channels and sectors.

Dahiru stressed the fact that Eid-Il-Kabir is celebrated by 1.8billion Muslims globally, while in Nigeria more than 100 million Muslims celebrate the season.