Why Does Business Zakat Contribute Insignificantly to Achieving “SDG-1: Ending Poverty” in Nigeria? Evidence from Recordkeeping Practices

Umar, Umar Habibu; Abubakar, Mustapha; Sharifai, Ibrahim Ibrahim

doi:10.1007/978-3-030-65313-2_11

Cited by 6 publications

(7 citation statements)

References 16 publications

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“…Thus, H1 is not supported, which implies that ZAK cannot be used directly to alleviate poverty in Nigeria during the pandemic. This result is in line with a few studies, such as Choiriyah et al (2020) and Umar et al (2021). However, it contradicts the findings of most of the earlier studies, such as Anis and Kassim (2016), Nashir and Nurzaman (2018), Sumai et al (2019), Suprayitno (2020) and Mustafa et al (2018).…”

Section: Robust Regression Results and Hypotheses Testingsupporting

confidence: 79%

“…Similarly, Farouk et al (2017) found the ineffectiveness of administration and unilateral decision as key the challenges of zakat institutions in Nigeria. Besides, Umar et al (2021) established lack of keeping proper and complete records by traders to have contributed to the underpayment of zakat and consequently made it to contribute insignificantly to poverty alleviation in Nigeria.…”

Section: Discussion Of the Key Findingsmentioning

confidence: 99%

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The potential of Islamic social finance to alleviate poverty in the era of COVID-19: the moderating effect of ethical orientation

Umar

Baita

Haron

et al. 2021

IMEFM

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Purpose This paper aims to explore the potential of the awareness and knowledge of Islamic social finance (zakat, waqf and Islamic microfinance) to alleviate poverty during the COVID-19 pandemic with the moderating effect of ethical orientation. Design/methodology/approach The data were collected through the administration of paper-based and electronic questionnaires to 400 respondents out of which only 277 were found valid for analysis. Findings The study showed that by direct relationship, the awareness and knowledge of Islamic social finance instruments have a potentially significant positive contribution to poverty alleviation during the COVID-19 pandemic except for zakat that has an insignificant positive contribution. Ethical oriental has also a significant positive contribution. Contrary to expectation, the moderating effect of ethical orientation has changed zakat and waqf to have significant negative and insignificant positive contributions, respectively. Only Islamic microfinance has endured the moderating effect to continue contributing significantly and positively to the reduction of poverty. Research limitations/implications The study explored only the potential impact of the awareness and knowledge of Islamic social finance to mitigate the extreme poverty caused by the COVID-19 pandemic in Nigeria. Practical implications This study clearly showed the need to create enabling laws and policies to support the operations of zakat and waqf institutions to achieve their objectives effectively and efficiently. These two institutions should be integrated with Islamic microfinance for the possibility of getting better outcomes. Social implications There should be massive campaigns to restore religious, social and political ethics to enhance the socio-economic development of Nigerians based on the principles of brotherhood. Originality/value This study provides unexpected and unusual results showing the inability of zakat and waqf institutions to alleviate poverty due to poor ethical orientation.

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Section: Robust Regression Results and Hypotheses Testingsupporting

confidence: 79%

Section: Discussion Of the Key Findingsmentioning

confidence: 99%

The potential of Islamic social finance to alleviate poverty in the era of COVID-19: the moderating effect of ethical orientation

Umar

Baita

Haron

et al. 2021

IMEFM

Self Cite

View full text Add to dashboard Cite

show abstract

“…It is essential to note that the development and maintenance of accounting records by the Islamic state motivated Muslim traders to ensure that records of their businesses were complete and proper, particularly to measure their profits and capital growth in order to calculate the zakat payable to the bayt al-māl (Zaid, 2000b). This is because keeping incomplete records of zakatable assets would certainly lead to the underpayment of business zakat (Umar et al, 2021a). Briefly, it is compellingly arguable that recordkeeping practices were divinely provided and practiced in Islamic states before Luca Pacioli released the principles of double entry.…”

Section: Literature Review the Importance Of Bookkeeping Practices In...mentioning

confidence: 99%

“…A review of empirical studies on the recordkeeping practices of businesses showed that MSMEs failed to maintain proper and complete records, particularly those that are not registered as companies. Most African MSMEs do not keep proper and complete records (Umar et al, 2021a). For example, Maseko and Manyani (2011) found that most SMEs in Zimbabwe maintained their transactions improperly due to the lack of accounting knowledge and the inefficient application of accounting information in financial performance measurement.…”

Section: Review Of Empirical Studiesmentioning

confidence: 99%

“…Moreover, Ademola et al (2012) discovered that most small enterprises maintained poor records, making it difficult to assess their growth in Kogi State, Nigeria. Besides, Umar et al (2021a) used semi-structured interviews and found zakat to have been underpaid because the traders maintained improper and incomplete records of zakatable assets and deductible liabilities.…”

Section: Review Of Empirical Studiesmentioning

confidence: 99%

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Evaluating the Bookkeeping Practices of Muslim Traders in the Context of Islamic Inheritance

Umar¹,

Haron²

2023

IJIF

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Purpose ― This study evaluates the bookkeeping practices of Muslim traders that carry out their trading activities in Kano State, Nigeria, from an Islamic inheritance perspective. Design/Methodology/Approach ― The major source of data was the administration of questionnaires. Semi-structured interviews were also conducted to support the results. Findings ― The questionnaire results found traders maintaining incomplete and improper records of their assets and liabilities. They also kept very minimal records for waṣiyyah (Islamic will). The findings imply that their inheritable wealth would not be fairly distributed based on the provisions of Islamic inheritance law. This claim was supported by real-life cases obtained through interviews portraying the consequences of incomplete and improper bookkeeping records. Originality/Value ― This paper is a pioneer study that empirically links bookkeeping practices to Islamic inheritance. Research Limitations ― This study is limited to Kano State, which is one of the 36 states of Nigeria. Practical Implications ― Traders are required to maintain proper and complete records of their assets, liabilities and waṣiyyah with a view to ensuring that their wealth is fairly distributed among their claimants when they die. Social Implications ― Keeping proper and complete records by traders could maximise the share to be given to each of their heirs and would save them against exposure to poverty, particularly if the wealth is properly invested.

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The Need for Revitalization of Islamic Social Finance Instruments in the COVID-19 Period in Nigeria: The Role of Digitalization

Umar

Danlami

2022

Artificial Intelligence for Sustainable Finance and Sustainable Technology

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Why Does Business Zakat Contribute Insignificantly to Achieving “SDG-1: Ending Poverty” in Nigeria? Evidence from Recordkeeping Practices

Cited by 6 publications

References 16 publications

The potential of Islamic social finance to alleviate poverty in the era of COVID-19: the moderating effect of ethical orientation

The potential of Islamic social finance to alleviate poverty in the era of COVID-19: the moderating effect of ethical orientation

Evaluating the Bookkeeping Practices of Muslim Traders in the Context of Islamic Inheritance

The Need for Revitalization of Islamic Social Finance Instruments in the COVID-19 Period in Nigeria: The Role of Digitalization

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