Usury Prohibition (Riba) and Islamic Finance in Nigerian Commercial Practice: Evidence from Plateau State

The Quranic prohibition of riba (usury or interest) is a foundational principle of Islamic commercial law that creates distinct obligations for Muslim business owners and financial institutions seeking to conduct commerce consistent with their religious obligations. In Plateau State, a religiously mixed North Central state, Muslim business owners navigate the intersection between mainstream Nigerian commercial banking practice and the Islamic prohibition on interest-bearing transactions. This study examines awareness of riba prohibition and the strategies adopted by Muslim traders and business owners in Plateau State to manage compliance with Islamic financial principles. A descriptive survey methodology is applied to 200 Muslim business owners across Jos metropolis and Shendam, using structured questionnaires assessing awareness of riba prohibition, use of Islamic financial instruments, engagement with conventional banking, and attitudes toward Islamic finance. Descriptive statistics and chi-square analysis are computed in SPSS. Existing literature from North Central Nigeria identifies the limited availability of Islamic banking products outside major urban centres as the primary compliance barrier for rural Muslim business owners. The classical Fiqh prohibition on riba al-Fadl (surplus riba) and riba al-Nasiya (deferred riba) provides the doctrinal framework. Findings are expected to reveal high awareness alongside low formal compliance due to limited alternatives. Recommendations address expansion of Islamic banking access, awareness of riba-compliant alternatives, and Sharia scholar engagement with business communities in Plateau State. Keywords: riba, usury, Islamic finance, Plateau State, Muslim business owners.