The role of Islamic social finance instruments towards poverty alleviation in Nigeria: a juristic analysis

• Main Authors: Busari, Saheed Abdullahi, Salaudeen, Adnan Opeyemi
• Format: Article
• Language: English
• Published: IIUM Press 2024
• Subjects: BPH104 Islam and poverty
• Online Access: http://irep.iium.edu.my/113658/7/113658_%20The%20role%20of%20Islamic%20social%20finance.pdf; http://irep.iium.edu.my/113658/
• Institution: Universiti Islam Antarabangsa Malaysia

Nigeria is one of the West African countries that have abundant natural resources. It is also a member of the Organization of Petroleum Exporting Countries (OPEC). According to World Bank statistics, Nigeria’s poverty rate is alarming, ranking next after India. Despite the numerous natural resources in Nigeria, poor economic management and governance are considered factors responsible for the current standard of living in the country. This study examines the potential opportunities and challenges in employing the Islamic social instruments of Zakah, Sadaqah, and Waqf in wealth redistribution to alleviate poverty in Nigeria. This study uses data obtained through library search to explicate the achievements and challenges of wealth redistribution in Nigeria and the role of Islamic social financing in eradicating poverty. It adopts a descriptive and juristic analysis approach to the roles and potential contributions of existing Islamic social finance platforms in the sustainable redistribution of wealth in Nigeria. This study reviews existing social finance platforms in Nigeria through an analysis of the Qur’an, Hadith, and Islamic economic worldview interpretations. The study explores the socio-economic potential of Nigeria’s multi-ethnic, cultural, and religious society. This study finds that Islamic social finance institutions in Nigeria face corporate governance, effective records, database management, and regulatory challenges impeding public and private institutions’ initiatives to address wealth redistribution and eradicating poverty through Islamic social financing use of Zakah, Sadaqah, and Waqf in Nigeria.