SEMI-FORMAL ISLAMIC MICROFINANCE INSTITUTIONS IN NIGERIA: THE EXPERIENCE OF AL-HAYAT RELIEF FOUNDATION

Al-Hayat Relief Foundation was established as a non-governmental organization (NGO) about seventeen years ago purposely to alleviate poverty among Nigerian Muslims. The organization claims to have adopted Islamic framework of financing. This paper assessed the economic and social impacts of the foundation on its members. It also examined the extent by which the foundation complies with the principles of Islamic economic system. Three hypotheses were designed to assess the variables and the Shariah compliance programmes of the foundation. The paper adopted a descriptive research survey method. A self-developed questionnaire was the instrument used for data collection. Descriptive analysis was used to analyze the data collected from the responses to the questionnaire. Using SPSS 2011 version package, Pearson’s correlation analysis was used for the verification of null hypotheses. The findings revealed that the foundation contributes meaningfully to the economic and social well being of the people and that the programmes carried out by the foundation are shariah compliant to a reasonable level.