CAUSES AND EFFECTS OF ECONOMIC HARDSHIP IN NIGERIA AND POSSIBLE SOLUTIONS: ISLAMIC PERSPECTIVES

Abstract

Nigeria is currently grappling with severe economic hardship, intensified by the removal of fuel subsidies in 2023, persistent corruption, and continued dependence on crude oil revenues. These structural and policy-related challenges have resulted in inflation, unemployment, food insecurity, rising suicide rates, and the collapse of small and medium sized businesses, while eroding public trust in governance. This study adopts a qualitative approach, combining historical analysis, phenomenological inquiry, and documentary review of Qur’anic texts, Hadith, and classical and modern Islamic scholarship. Semi-structured interviews with households, business owners, economists, and Islamic scholars further illuminate the lived realities of hardship. Findings reveal that subsidy removal without adequate safety nets, systemic corruption, and oil dependency are central drivers of Nigeria’s crisis, with devastating socio-economic and spiritual consequences. From an Islamic perspective, economic hardship is not only a fiscal problem but also a moral failure of justice, equity, and accountability. The paper highlights Islamic economic principles zakat, prohibition of riba, waqf, hisbah, and diversification as viable solutions for poverty alleviation and social justice. It concludes that Nigeria’s recovery requires both sound economic reforms and an ethical transformation rooted in Islamic teachings, offering a faith-informed roadmap for resilience and sustainable development.