Possibility of Converting ROSCAS to operate on Islamic Principles

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An Empirical Study of Possibility of Converting ROSCAS to Operate on Islamic Principles of Finance in Ilorin, Nigeria; reports a study conducted on Ilorin, a Muslims dominated area, where there was no fully-fledged formal Islamic Financial Institution and the earlier writers on ROSCAS neither conducted their studies in Ilorin nor look at the possibility of converting ROSCAS to operate on Islamic Principle of Finance.

It explains man as a creature of Almighty God, Allah (SWT) who allows him to use His creations in good way (Amalan Salihat) and account to Him on the Day of Judgment.

Qur'an, Sunnah of Prophet Muhammad (SAWS) as in Khan (1994) and Al-Asqalani (1996) were used to back all Islamic Economic Arguments in the work.

Relevant arguments of Non-Islamic scholars are reviewed.

It obtained primary data using purposive sampling method, Participant-Observation, discussion and administered Questionnaire (400 on ROSCAS Members and 100 on ROSCAS Coordinators) and analyzed them by Likert (1932) scaling method and Boone & Boone (2012).

It also invented and applied Proximity-To-One-Test (PTOT), descriptive and inferential statistics to find that ROSCAS can be operated islamically.

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