How Non-Interest Finance Can Support Waste Recycling Businesses


Friday, March 19, 2021 / 1:00PM / Bukola Akinyele-Yisau for WebTV / Header Image Credit: WebTV

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On Thursday March 17, 2021, the world marked the 2021 Recycling Day which had as its theme "Recycling Heroes", Mr. Abdullah Abdulrasaq, a lecturer in the department of Islamic Banking, Insurance and Finance, Islamic Finance College, Ilorin, noted that non-interest finance could support waste recycling businesses in Nigeria.


According to Abdulrasaq the waste recycling business in Nigeria, was a fast-growing segment of the economy that could drive sustainability, with the focus of achieving a cleaner environment.


He mentioned "Musawama" which involves the provision of capital for investments in a business, as one of the products that can be accessed for businesses that trash to cash.


Abdulrasaq stressed that in 2018 Lagos state had the highest plastic waste in Nigeria and is currently the state with the fastest growing 'green' industry, or organizations involved in waste recycling.


Speaking further he noted that recycling has become one of the major sources of employment in the state and was also creating wealth for individuals.


He added "Nigeria produces about 10m metric tons of waste material annually".  


The Islamic finance scholar said Nigeria was the largest producer of waste materials on the African continent providing raw material for companies making textile, shoes, and plastic among other products.


Some of the areas he identified as possible ways Non-Interest Finance can uplift Waste Recycling Business include;

1.      Halal Investment: From this investment, investors can come in to invest in the business due to its liquidity and explore how to turn trash into cash, with the enabling environment supporting their activities.


2.     Empowerment: By empowering the youth / individual the rising tide of unemployment is addressed significantly, through the activities of the waste recycling businesses. He said Islamic Finance institutions can use Halal investment to invest in people who are in the waste recycling business value chain, to promote a green environment in the country. Abdulrasaq cited Tanzania as an example of a country in Africa with the largest waste recycling industry supporting a clean environment and sustainable development.



The waste business expert said non-interest finance should support waste recycling because of its value for sustainability and a circular economy.

"In the non-interest financial institution an individual having loan or investment there will be in agreement with the investor to promote the business at large, and to have a green business that create jobs and foster innovation," he said.


He emphasized the need for Non-Interest Finance Association of Nigeria (NIFAN) to give top priority to the promotion of waste recycling businesses in Nigeria.   

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