Prologue
Islam stands as a natural religion built upon pragmatism. Throughout human history and civilization, challenging times have always emerged. Such times recur like a decimal number. They can arise from divine imposition or result from the consequences of bad governance and the excesses of individuals and leaders. Regardless of the factors triggering difficult times, it becomes imperative to cultivate pragmatic approaches that enable us to endure and thrive in the face of adversity, much like the challenging circumstances Nigerians currently grapple with. Insha Allah, Nigeria will undoubtedly rise again to the satisfaction of its citizens. However, the notion that a utopian El Dorado will emerge within four years of President Bola Ahmed Tinubu’s tenure is illusory and exaggerated. The country’s economic structure heavily relies on oil, and institutional corruption has eroded the effectiveness of governing bodies to quickly deliver the dividends of democratic governance. Urgently, self-help measures are required to complement the interventions initiated by the three levels of government (Federal, State and Local Governments).
Zeroing in on specifics, Islam enjoins its adherents to be pragmatic, proactive, and preemptive amid uncertainties. Rather than succumbing to challenges, Islam’s tenets suggest that cultivating the right mindset empowers individuals to adapt, innovate, and identify opportunities even during trying times. Consequently, concerted efforts to alleviate poverty within Muslim societies during economic downturns must involve individuals, groups, and governments. Addressing the root causes of poverty, whether internal or external, becomes a shared responsibility. As Allah affirms,
“That man can have nothing but what he strives for” (Q53:39).
Similarly, in another verse, He states,
“As for those who struggle in Our cause, We will surely guide them along Our Way. And Allah is certainly with the good doers” (Q29:69).
These verses underscore the significance of diligent effort guided by effective strategies, encompassing both spiritual and material dimensions.
Likewise, each morning, the Prophet (peace be upon him) recited and encouraged Muslims to do the same: “O Allah, I seek refuge with You from disbelief and poverty. O Allah, I seek refuge with You from the punishment of the grave. There is no god but You” (Al-Adab Al-Mufrad 701, Book 31, Hadith 701).
Without a doubt, the economic downturn in Nigeria has exacerbated poverty and material inequality. Al-Imam Jalaluddin bin Abi Bakr As-Suyuthi, al-Jami’ ash-Shaghir, quotes Anas narrating that the Prophet (Peace be upon him) said, “Poverty can lead to infidelity.” In the book “Fahmi Huwaidi, al-Qur’an wa al-Sultan” (Kairo: Dar al-Syurq, 1991) p. 172, Sayyidina Ali, the fourth Caliph after the Prophet, stated, “If poverty were a real man, I would kill him.”
Surviving and Thriving in Tough Times
Coping with tough times demands effective and potent strategies. After all, Allah advises, “But seek, with that which Allah has bestowed on you, the home of the Hereafter, and forget not your portion of lawful enjoyment in this world; and be generous as Allah has been generous to you, and seek not mischief in the land. Verily, Allah likes not the mischief-makers” (Q28:77). The strategies outlined in this article are both prescriptive and recommendatory. They resemble products on a supermarket shelf, allowing buyers to select those that resonate with their socio-economic needs, tastes, and preferences voluntarily.
The initial strategy for surviving and thriving in Nigeria’s economic downturn involves adopting a growth mindset, rather than a fixed one. This means fostering a healthy attitude that embraces challenges, perceives failures as learning opportunities, and believes in personal and professional development potential. Given that economic downturns can contribute to mental issues, psychological stress, and emotional challenges, maintaining a positive outlook and prioritizing self-care and mental well-being becomes imperative. A growth mindset can enhance decision-making and creative problem-solving, especially during economic downturns. Individuals with such a mindset first look within themselves before seeking external interventions, such as luck, familial support, or government assistance, which may be delayed or unavailable. Beyond Allah’s decree, which remains beyond our knowledge and sight, our human attitude plays a significant role in shaping our attitude and approach to evading poverty, economic inequality, and the repercussions of economic downturns. Joan Maya Mazelis, a sociologist, suggests that poverty is a state of mind, and cultivating the right attitude can enable individuals to escape poverty (The Washington Post, 2017). Have you contemplated altering your socially constructed perceptions of self-imposed poverty, economic inequality, and extravagant lifestyles? Have you pondered the possibility of reducing extravagant and unnecessary expenditures on food, clothing, unnecessary gatherings, and accommodations? Who mandates that you must reside in a three-bedroom apartment? Who dictates that your children must attend costly schools similar to your peers or colleagues? Who proclaims that you cannot engage in a partnership business with colleagues while simultaneously working full-time for both the government and private sector? It is vital to break free from mental slavery and socially ingrained notions like “Incompatible with my status and background,” “three square meals,” “elite lifestyle,” and “appropriate footwear and attire,” among others.
The second strategy for surviving and thriving during an economic downturn is to cultivate an interest in financial literacy. Financial literacy encompasses fundamental knowledge, understanding, and skills that every Muslim requires regarding financial concepts, tools, and practices. This knowledge enables informed and effective decision-making related to personal and family finances, covering aspects such as money management, budgeting, saving, investing, borrowing, and planning. Ask yourself the following questions: Do you formulate budgets for yourself and your family? Do you rigorously adhere to your monthly budget? Do you plan your expenses or spend impulsively based on social influence? Concerning how we allocate our personal monthly income—whether as family providers or individuals—three categories emerge: those who earn income and spend it all (Y=C, where income equals consumption); those who allocate income between consumption and savings (Y=C, where income equals consumption plus savings); and those who allocate income among consumption, savings, and investment (Y=C, where income equals consumption plus savings and investment). The third category fares well and navigates economic downturns successfully because they possess backup savings and investments. From the second strategy above, two key takeaways involve cultivating a savings culture and an investment culture. The savings culture involves setting funds aside in a dedicated bank account over time, providing a safety net during emergencies, even if only for a brief period. The investment culture entails directing saved funds (savings) into relatively low-risk income-generating opportunities, ensuring financial security during economic crises, and sustaining prosperity, including retirement.
The third strategy for surviving and thriving during an economic downturn involves paying oneself first (PYF). PYF serves as a personal savings enhancer and wealth-building mindset, facilitating the creation of personal investments to weather economic downturns, emergencies, and establish viable retirement plans. This approach necessitates deducting a predetermined savings contribution from your salary or part-time earning immediately after payment, before addressing other monthly living expenses and discretionary expenditures. PYF builds a financial cushion, securing your future, providing a safety net for unforeseen circumstances, supporting investment initiatives, and offering a startup fund. This strategy aligns with the second strategy mentioned earlier.
The fourth strategy for navigating the ongoing economic downturn involves generating multiple streams of income through flexible secondary employment, self-employment, and participation in projects and portfolios of investment groups or clubs. Multiple income sources (a) facilitate the fulfillment of family obligations and work commitments, (b) elevates the standard of living, (c) counter rising inflation, (d) foster wealth accumulation for financial independence, (e) bolster financial liquidity to manage taxes, levies, and duties, (f) pave the way for a secure retirement, and (g) enables the discharge of religious and social responsibilities, including extended family obligations. In 1991, Professor Henry Samueli and his doctoral student, Henry Nicholas, embarked on Broadcom Corporation with an initial investment of $5,000 each. Today, the startup has evolved into a Fortune 500 company with over 14,000 employees and a market capitalization of $100 billion. This narrative highlights the potential of building multiple income streams through entrepreneurial initiatives to grow from humble beginnings to prominent players in the corporate world. The starting point is to gain knowledge about different revenue streams, start-ups and financial independence through reading and attending enriching training programs and capacity-building seminars on entrepreneurship and investment prospects.
The fifth strategy for surviving an economic downturn centres on problem-solving. The reward for resolving problems is financial gain. Reflect on the COVID-19 pandemic: individuals who addressed the socioeconomic and environmental challenges stemming from the pandemic found financial success in the production and sale of face masks, face shields, disinfectants, handwash soaps, vaccines, and immune-boosting dietary supplements. Similarly, your professional expertise and vocational skills can be monetized through consultancy roles, partnerships in consulting firms, and expert advisory services within your field of proficiency. According to Desh Deshpande, an American social entrepreneur, the world comprises three types of people: those who are unaware, those who recognize a problem and complain, and those who identify a problem and work to solve it. The third category represents entrepreneurs, as they discern opportunities where others see ambiguities and crises.
Conclusion
The article offers insights into a growth mentality and entrepreneurship that can enable Muslims not only to survive but also to thrive during an economic downturn in Nigeria. Learn to create, deliver, and reclaim value in both times of economic prosperity and economic downturn. The great sociologist and historian Imam Ibn Khaldun wrote in his famous book, al-Muqaddima, that the main reason for the poverty of Islamic scholars is that the masses do not appreciate what they offer. Few people truly appreciate their worth and are therefore not paid appropriately. Understanding how to leverage timing to advance your economic fortune is also important. As Hassan al-Basri once said, “The world consists of three days: yesterday, tomorrow, and today.” Yesterday disappeared along with everything that was in it. As for tomorrow, you may never see it. Today is yours, so work on it.
Dr Lukman Raimi, is the Programme Coordinator for Entrepreneurship Major, Universiti Brunei Darussalam
Quite apt and practical approach to addressing the current trend of economic doldrums globally and at all times. I have no doubt in its efficacy.
Thanks for this piece of scholarly packaged contribution from the lenses of Islam.
You are right sir
A very educative write up. May Allah SWT bless the writer, the readers and the Muslim ummah with beneficial knowledge, wealth and health. Ameen.