Zakat and waqf : towards a comprehensive framework for poverty reduction in Kano, Nigeria

Abstract

Kano State is the most populous Muslim state in Nigeria and a major commercial and industrial center in the West African sub-region. Ironically, it is also the state with the largest number of absolute poor in Nigeria. There is great need and potential to develop and to promote distributive justice through Islamic philanthropic tools such as zakat and waqf. To help and achieve this, the State government established the Zakat and Hubusi (Waqf) Commission Law in 2003 and regulated them in accordance with the dictates of Sharia to promote effective collection, distribution, and investment specifically for poverty reduction. However, after twenty years, the Commission has failed to pool the zakat and waqf resources needed to reduce increasing poverty levels in the State. This study aimed and developed a comprehensive framework based on empirical investigation of the challenges militating against effectiveness of these institutions. A constructivist qualitative method using grounded theory design was employed in which qualitative data was obtained in two stages. In the first stage, interviews were administered to eleven participants comprised of eight officials of the Commission and three officials from community based and professional philanthropic organizations. Codes and themes developed after transcriptions of the interviews were used to develop the questionnaire for data collection in the second stage of the study. This second stage aimed to strengthen the findings of the first phase and allowed for the generalisation of the result. Findings from the first stage analyses showed that the existing legal and administrative structure is inimical to effective operation of zakat and waqf institutions in Kano State due to general mistrust attached to government owned establishments and officials. Additional evidence showed that localizing administration through community-based organizations (CBOs) are the major trust drivers and would ease identification of donors and beneficiaries for effective collection and distribution respectively. It would also provide a structure that would instil trust and promote compliance for the system as donors could easily evaluate the transparency and effectiveness of the institutions through achievements of their local CBOs. The findings suggested that promoting accountability, indirect enforcement of compliance, favourable condition of service, employment of digital technology, employment and training of competent officials, building databases for donors and beneficiaries, education and awareness by clerics, empowerment programs, de-politicization of administration and more importantly building trust through legal engagement and partnership with community-based organizations were needed. Findings from the second stage analyses supported the above result and recommendations, and especially recognized a strong positive relationship between donor’s trust, partnership with stakeholders and performance of the zakat and waqf institution. The weaker the government institutions, the lower the level of trust and support from stakeholders. Further findings supported the role of community organization in promoting the role of zakat and waqf for effective poverty reduction in Kano, Nigeria. Generally, the framework suggested localizing collection and distribution based on effective regulation and partnership with other local organizations and international actors on capacity building, resilience in local response to poverty, building trust, and community education.