Islam allows trade or business that is free from usurpation of usury (interest) which usually resulted in evil consequence , exploitation and corruption on the business partners, sellers, buyers or public. Trading is not new in human society as the humans started to buy and sell or exchange goods to make a living. Islam mounted on this and makes some reforms to better the relationship among the sellers, buyers as well as the general public. There is no gainsaying that, people during the period of darkness (ignorance) have said that interest taking on trades or business is the same as trade, that was the picture and practice in the society that the Prophet Muhammad SAW was born, but Allah (SWT) in His Book; al-Qur’an made us realized that both are not the same, it is because trade is different from interest taking on goods or loan.
It’s indeed disgusting today that people are not interested in genuine businesses or trades as encouraged by Islam, but rather look for a quick way of getting money which had already been condemned by Allah in al-Qur’an. Though, there is no list of items of trades by Islam, but Islam guides us to trade in what is lawful, because what is lawful to eat is lawful to sell, while what is not permitted to eat is also unlawful to trade in. On this basis, Islam condemns all usury (interest) based trades or businesses, no matter how profitable it is, because such is a great offence and punishable by Allah in this life and hereafter. Allah replied to those who were confused about interest taking on goods or loan with trade and He stated its devastating result of engaging it in al-Qur’an (Chapter 2: 175-181) thus: “Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, “Trade is [just] like interest.” But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah . But whoever returns to [dealing in interest or usury] – those are the companions of the Fire; they will abide eternally therein. Allah destroys interest and gives increase for charities. And Allah does not like every sinning disbeliever. Indeed, those who believe and do righteous deeds and establish prayer and give zakah will have their reward with their Lord, and there will be no fear concerning them, nor will they grieve. O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal – [thus] you do no wrong, nor are you wronged. And if someone is in hardship, then [let there be] postponement until [a time of] ease. But if you give [from your right as] charity, then it is better for you, if you only knew.
And fear a Day when you will be returned to Allah . Then every soul will be compensated for what it earned, and they will not be treated unjustly”. The implications of these verses are applicable to all kinds of businesses Nigerians and others engaged in today which later ended in shock and doom as we have recently heard of CBEX; a deceptive, greed and unlawful business or trade which negates all the conditions of Islamic trade.
In addition, trade or genuine business in Islam is allowed as it forbids laziness in all its kinds. Therefore, trade is a lawful transaction between the sellers and buyers or partners with clear agreement of what gain or loss looks like, but not exactly. In this regard, Islam sets an ethical standard for a lawful business, to include;
1. Willingness of interest to participate in the business without being coerced or pressured into becoming a member or an agent.
2. Transactions must include products that are of tangible and inherent value
3. The price paid should commensurate with the products transacted or services rendered
4. Transactions must be clearly stated, agreed upon and free from being deceptive or ambiguous (Gharar)
5. Products involved in the business or trade should also be permissible from the legal and Islamic aspects (halal).
6. Bonuses and incentives received by all parties involved in the business should be made known and agreed upon by all members and agents.
7. Islam specifically warns Muslims and business owners and partners to be cautious of the following hints in order not to fall in Ponzi business or scheme if; (a) Business involves promising its members payment or services primarily through enrolling other people into the schemes (networking), rather than supplying any real investment or sale of products or services. (b). Schemes that will collapse in the long-run, hence causing later participants to lose their upfront payments. Those who are most vulnerable are those towards the bottom of the pyramid, where it becomes nearly impossible to recruit new members required to pay off the previous layer of recruiters. (c). When there is a compulsory purchase of goods and services, or required investment whether in the form of a joining fee or buying inventory, as a requirement before one is entitled to the bonuses and benefits offered in the scheme. (d). Business should be devoid of elements of manipulation, exploitation, injustice, unfairness and deceit. (e). Business or trade should be free from elements that contradict the ethical commercial transactions in Sharia’h. (f) Business that is not explicit in nature of what it trades in or not agreement based on sharing formula for profit or loss and where the profit is fixed regardless the outcome and with no specific efforts is considered unlawful business, this is likened to “Ponzi Scheme” similar to Cypro-currency Business Exchange (CBEX) which falls under illegal business in Islam with the consequencial loss on the participants as we can see that many participants in Nigeria recently were hospitalized and devastated in shock when it happened. Indeed, it was researched on by Islamic Finance News (2016) that Ponzi Scheme was named after Charles Ponzi who assured people of supernormal profits from their investments without being involved in any profitable real investments. He was involved with such fraudulent activities in 1920 where he defrauded investors amounting to US$15 million, which is equivalent to more than US$150 million today and he was later caught and sentenced.
Meanwhile, Islam as a religion that guides entire humans’ dealings, condemns businesses that violate the core values of fairness, transparency, and mutual benefit and thus considered it a gambling as Allah warns us clearly in the Qur’an about gambling in Chapter 5: 90, thus: “O you who believe! Intoxicants, gambling, sacrificing to stone alters, and divining arrows are abominations of Satan’s handiwork. So avoid them that you may be successful”.
Admittedly, Islam warns business partners to stay away from deception as the Prophet Muhammad (SAW) indicated it in his Hadith, thus: ‘Abdullah b. Dinar narrated that he heard Ibn ‘Umar (Allah be pleased with them) saying : A man mentioned to the Messenger of Allah (may peace be upon him) that he was deceived in a business transaction, whereupon Allah’s Messenger (may peace be upon him) said : When you enter into a transaction, say : There should be no attempt to deceive” (Sahih Muslim 1533a). The Hadith emphasizes the importance of honesty and truthfulness when engaging in business transactions and also encourages the strive for honesty and truthfulness when conducting any kind of business or financial dealings with others.
It would be incompetent if I fail to stress that CBEX is not the first Ponzi Scheme in Nigeria, there were several others, but unfortunately Nigerians turned deaf ears to the warnings and disheartening results of those schemes, if not, Nigerians wouldn’t have fallen into CBEX again in the guise that it takes after a similar international online business (China-Beijing Equity Exchange) which had already banned unknowingly to investors a year ago, though Islam doesn’t condemn online business, but it cautions on how to go about and set ethical standard for its involvement. Whereas, notably among the previous Ponzi schemes in Nigeria include:
1. MMM (2016)
2. Smart City Investment (2017)
3. Hedonmark Investment (2017)
4. Plexus (2017)
5. Bitconnect (2018)
6. Tradebulls (2018)
7. Twin Power Investment (2018)
8. Halal Invest (2018)
9. Credent Investment (2019)
10. CBEX 2025 (2024)
11. GrowFunder (2020)
12. ArisePays (2020)
13. Royale Masion (2021)
14. Unity Life Global (2022)
15. CashFX (2022)
16. Swift Network (2022)
17. Globax (2022)
18. Skypay (2023)
19. Regsmart (2023)
20. Opay/Palmpay investment schemes (2023)
21. WiseVest (2023)
22. Bundle (2023)
23. Truelancer (2020)
24. Paga investment schemes
25. Flutterwave investment schemes
26. Getro (2022)
27. Fast Cash Loans (2022)
28. Cash Mart (2022)
29. Payme (2023)
30. NowNow (2023)
31. Cambria Invest (2022)
32. HomesinLand (2022)
33. Life style Entrepreneur (2023)
34. Easyfimoney (2023)
More importantly, Nigerians by this piece are also warned from scam syndrome signs, SMS or alerts, to include the following:
1. Paying money to get more money? Likely a scam.
2. Asked to share a code sent to your phone? Be cautious.
3. Promised instant wealth with no effort? Red flag.
4. A deal that sounds too good to be true? It probably is.
5. Pressured to act fast without time to think? Be wary.
6. Unnecessary requests for personal info? Think twice.
7. A “secret millionaire” offering you money? Unlikely.
8. Something “free” but requires payment first? Scam alert.
9. Won a prize but need to pay to claim it? It’s fake.
10. Inheritance from an unknown relative? Highly suspicious.
11. A job offer with no interview or documents? Not legit.
12. Urgent emails requesting money? Ignore them.
13. Guaranteed profits with no risk? No such thing.
14. Payment only via gift cards or crypto? Walk away.
15. A shady-looking website? Don’t trust it.
16. Asked to transfer money abroad for business? Big risk.
17. The sender won’t provide verifiable contact info? Scam.
18. The deal is too secretive? Watch out.
19. Told to keep money matters “confidential”? Be skeptical.
20. High-pressure tactics, threats, or guilt trips? Say no.
21. Fees or taxes required upfront for a prize or loan? Scam tactic.
22. No time to verify details before deciding? Not a good sign.
23. A random business opportunity out of nowhere? Likely fake.
24. Someone claims to be an expert but lacks proof? Don’t believe them.
25. Need to send money to receive a loan? Not legit.
26. A “miracle” cure or investment? Highly doubtful.
27. Told to avoid legal channels? It’s illegal.
28. Overly complicated deal with no clear answers? Be suspicious.
29. Asked to use an unfamiliar payment method? Think again.
30. Overly friendly but avoids discussing business clearly? Walk away.
In conclusion, Islam encourages Muslims and the general public to stay away from “quick money syndrome” because it often leads to regret. It also encourages the investment only in halal, ethical business opportunities where your risk, effort, and returns are clear and justifiable.
Islam further encourages business investors to have trust in slow, consistent effort, and remember that true Barakaat (blessings) comes from Allah, not from hype (Abu Hafs Lukgaf, 2025).
Imam Yusuf Mashood Dagbo, Chief Imam, GGDSS Central Mosque, Okesuna; Anchor, At-Tibyān on SBS FM & Director, YUMAD Consults, specializes in educational consultancy, Cultural Orientation, Marriage Counselling, Event Organization, Public Presentation etc. Contact: dagbomashood@gmail.com (08035215264).
About Author
