The Relevance of Islamic Financing Instruments on COVID 19 Recession in Nigeria

This study examined the relevance of Islamic financing Instruments on COVID 19 Recession as it affects different sectors of the economy in Nigeria. A comparative analyses of the Islamic Finance Instruments such as Musharakah, (Equity Sharing) ,Mudarabah, (Silent partnership),Murabahah(Cost Plus),Salam, (Forward Sale) , Istisna (Manufacturing Financing), Ijarah (Leasing), Partnership) Al-Musaqat, (Contract of Irrigation) Qard Hassan (Beneficence Loans) ,Wakalah, (Agency contract) funds for various sectors of the Economy. This paper relies heavily on secondary data through literature reviews and research works of authors and researchers on Islamic Finance and Economic Recession; and concluded that Sukuk, Ijarah, Al-Musaqat, Salam, Qard Hassan, Istisna, Musharakah, Mudarabah, Wakalah,and Kafalah financing modes were essential to providing alternative sources of financing the Economy during recession. We recommended that Islamic Banks should be aggressive in promoting the usefulness of the Islamic Financing instruments to Governments, Manufacturing Companies, firms an d Small Business owners in order to cushion the negative effects of POST COVID 19 Recession on the Economy.