Bismillah Ar-Rahman Ar-Rahim
Human circle keeps going based on various events among men such as economic, political and social interactions an integral part of which is business transaction. Buying and selling as desirable catalyst for economic development offers rob-my-back I rob-your-back approach in mutually beneficial way. The parties involved are duty-bound to exhibit conscience-ridden disposition in order to attract divine benevolence into their wealth. The reward of Hereafter appears ore paramount as a product of fairness compared with the material reward. To Almighty Allah (SWT) is the best praise at all time and moment and may His peace and blessings be upon the noble Messenger Muhammad (SAW), and all deserving loyalists till the Day of Reckoning.
Allah (SWT) categorically warns in the Glorious Qur'an: "O you who believe! Eat not up your property among yourselves in vanities: but let there be among you traffic and trade by natural good-will: Nor kill or destroy yourselves: for verily Allah has been to you Most Merciful." It is in the same vein that the noble Messenger (SAW) corroborates that: "The buyer and seller have the rights of option as long as they do not part from one another. If they were honest and clear, they would be blessed in their transaction. If they concealed facts and lied, the blessings of their transaction would be destroyed." Taking the context of the Hadith with the China Business Exchange (CBEX) and other Ponzi-like business formations, ethical and moral consciousness come to mind and this is the central theme of another Tradition which proffers: and "May Allah have mercy on the one who is easy-going and generous while buying and selling and when demanding his right."
The concept of business transaction in Islam takes toll apart from most conventional formations as obtainable in recent time. The likes of Bernie Madoff, The DC Solar, The George Santos, The 'Texas Preacher', The One Coin Cryptocurrency Ponzi Schemes and the likes offers a scenario of 'Rob Peter to Pay Paul'. This is a situation whereby Shady Stock Brokers invest customers' money on imaginary companies in order to steal it. He finds new investors to use their money to pay 'returns' to previous investors, while continuing to steal in pretence. Criminally recruiting individuals to invest in non-existing companies for a keep while using new prospective customers' fund to pay dividends to which is done until no investor is no longer found.
Ponzi, Pyramid and the likes tend to camouflage but run on red flag by craving for big returns with little or no risk, delivery of unusual consistent returns and operating as unregistered and unlicensed outfits. They can be easily identified with secretive and overly complex investment strategies, restriction of access to, or include error in, paperwork, and making receiving or divesting money difficult. Other features of Ponzi include attracting huge amount Investor, trigger participant's greed. First set of participants are well-rewarded. Not only that, Investors' money often trapped in hands of Ponzi 30 days as a window period as in the practice on Money Making Machine (MMM), and 40 days for CBEX. It is all about profit and no loss.
With promise of salacious monthly bonuses touted on day-to-day Telegram and WhatsApp. Fake identity is also a main characteristics features of unwholesome business of Ponzi even though Mavrodi's tactics of revealing his real identity was trickish to swindle investors of their wealth.
It is against this background that Islam offers an array of viable means of livelihood which include lawful and perfect deals like buying and selling. This takes departure from risky business practices, especially those involving uncertainty or deception which are generally better discouraged and prohibited. This is because Islam emphasizes fairness, transparency, and avoiding the exploitation of others. The main concept in this context is 'Gharar' which refers to uncertainty, deception, or risk.
By extension, however, Ghara connotes excessive uncertainty or where buyer or seller is unclear
of the full details or potential outcomes. Riba (Interest) transactions are generally prohibited, with alternative financial instruments like profit-sharing (Murabahah) being favoured. Another instance is fairness transparency. Business dealings should be conducted with honesty avoiding all manners of deception and exploitation. Avoiding speculation and possibility of future gains are generally discouraged. Gambling and Lottery is haram due to inherent uncertainty and potentiality for exploitation. Unclear contracts agreement with ambiguous terms or conditions that could lead to disputes are discouraged.
Also, Short Selling involving betting on the price of a stock to decline, is generally considered risky and may not be permvissible under Islamic finance principle. More importantly, Uncertain goods or service sales which place the buyer in dark condition of knowledge about the state of the product or without clear understanding of of the qualities of the products is considered 'Gharar' and it is discouraged.
In essence, Islamic business principles makes priority ethical conduct, fairness and transparency. Contrarily, risk-taking is acceptable as long as it does not involve exploitation, uncertainty, or the violation of core Islamic principles. This goes in line with the central theme of the Prophetic Hadith which says: "The wealth of a Muslim is not permissible except through willing consent."
The recent hues and cries over the eventual and catastrophic collapse of CBEX shoddy business that left most investors utterly devastated signals warning to future future business dreamers. Little drops making ocean is preferred to big time risk resulting in multiple loss on the long run. A stitch in time prevents many calamitous and unnecessary eventuality. Whereas Allah (SWT) fervently warns Believers against all manners of too risk-bearing all in favour of commendable and reliable ventures. It is high time Believers are wary of brandings, concepts and products that serve the interest of no other person than the bearer.
Till we meet again in the next edition, wishing you happy reading.
DR RAZAQ BOLAWAYE UTHMAN, IMAM & MISSIONER ANSAR-UD-DEEN SOCIETY OF NIGERIA, IPAJA BRANCH LAGOS STATE NIGERIA. ©2025
STATE NIGERIA. © 2025
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