Ramadan2021: The Role of Zakat in Poverty Alleviation
According to the World Bank Organization, Nigeria poverty rate is project to increase from 40.1% in 2019 to 42.9% in 2022, implying that 95.7 million Nigerians will be living below the poverty line by 2022.
In combating poverty in Nigeria, Zakat one of the five pillars of Islam has been described as a veritable tool for deepening financial inclusion and achieving economic empowerment in Nigeria.
This edition of the Islamic Finance Weekly anchored by Bukola Akinyele-Yisau features the Deputy Director, Training and Linkages of the International Institute of Islamic Banking and Finance, Bayero University Kano, Dr. Aliyu Dahiru.
Zakat is an obligatory payment for Muslims based on income and the value of possessions. The common minimum amount for those who qualify is 2.5% of a Muslim's total savings and wealth.
He said Zakat facilitates the transfer of wealth from the rich to the poor people. It is the third pillar of Islam and to have a sound economy it must be collected and distributed accordingly.
In terms of benefits, Zakat establishes good human relationship among people, and ensures wealth circulation in the society. He believed that any society that gives Zakat to the poor will experience reduction in poverty.