An empirical study of the challenges facing zakat and waqf institutions in Northern Nigeria

Abstract

Purpose The purpose of this paper is to unearth the factors inhibiting the development of zakat (the Islamic obligatory alms) and waqf (endowment) institutions in Northern Nigeria, with the aim of proffering appropriate solutions. Design/methodology/approach This paper uses a qualitative research methodology whereby data was sourced from relevant stakeholders in Northern Nigeria. To select the appropriate interviewees, maximum variation and homogenous purposeful sampling techniques were used. Findings The findings of the paper show that zakat and waqf institutions in Northern Nigeria have not achieved their inherent Sharīʿah objectives because members of the public have little or no trust or confidence in the institutions. Also, the potential zakat payers and waqf donors dislike political office holders’ involvement in the appointment of the institutions’ administrators. Finally, the administrators lack adequate managerial and administrative knowledge of the two institutions. Research limitations/implications The current research focusses on causes of low performance of zakat and waqf institutions solely in Northern Nigeria. It is envisaged that subsequent researchers may conduct research on the possibility of having a federal law that will strengthen the overall establishment and development of zakat and waqf in Nigeria. This will affect both Muslim-majority and Muslim-minority communities. Originality/value This paper represents a referenceable work in the field of zakat and waqf in Northern Nigeria, as it uses an approach that sources primary data in the form of participants’ point of view instead of relying on literature or document analysis. It is not a mere theoretical study of the literature but an empirical investigation of the problem.

A Fresh View On Zakah As A Socio-Financial Tool To Promote Ethics, Eliminate Riba And Reduce Poverty

“…However, the lack of adequate control of zakah management in the Islamic world today represents an obstacle towards poverty alleviation. For example, in Nigeria, zakah institutions collect cash, livestock and agricultural products yet the amount is negligible (Ahmad, 2019). Similarly, in Sudan, even though zakah institutions collect a wider range of assets, including, livestock, mining, trade inventory, rented buildings and salaries (Islamic Research and Training Institute, 2015) yet insufficient governance of zakah management does not allow for higher collection of zakah.…”

Issues and Challenges of Waqf Practice in Malaysia: A Review

“…The absence of incentives and tax relief to the waqif resulted in a which they refused to be give more (Mahamood et al, 2018). There are also those who do not want to be waqf because they do not believe in waqf trustees (Ahmad, 2019;Pitchay & Abd Jalil, 2016;Binghaia & Kassim, 2017). Funds on the waqf institution are not sufficient to cover the required costs (Mahmood, Mustaffha, Musafar Hameed, & Johari, 2017).…”

The effects of good governance and fraud prevention on performance of the zakat institutions in Indonesia: a Sharīʿah forensic accounting perspective

“…Previous scholars have discussed several issues related to the governance of Zakat institutions. Lack of trust and low level of confidence are two commons issues, leading to low performance of Zakat institutions (Basir et al, 2017;Ahmad, 2019). It has also been argued that Zakat institutions are considered weak in the governance due to the absence of Zakat accounting standards, lack of knowledge and experiences in administration, management and low compliance behaviours (Saad and Farouk, 2019).…”