Analysis of the Effect of Zakat on Poverty Alleviation in Kano State, Nigeria

Authors

  • Maryam Magaji Department of Economics, Ahmadu Bello University Zaria, Kaduna State
  • Duru Mike Department of Economics, Ahmadu Bello University Zaria, Kaduna State
  • Soliu Hamzat Department of Economics, Ahmadu Bello University Zaria, Kaduna State

DOI:

https://doi.org/10.61143/umyu-jafr.3(1)2022.005

Keywords:

Zakat, Poverty, Nisāb, Zakat Beneficiaries, Kano State, Nigeria

Abstract

This study examined the effect of zakat on poverty alleviation in Kano State, Nigeria. Data were obtained from 342 respondents which include 292 and 50 zakat beneficiaries and zakat administrators respectively. The data were collected based on a subsample of respondents among the poor, the needy, the debtors, reconciliation of heart, the zakat administrators, and call to the way of Allah beneficiaries respectively. Foster Greer Thorbecke (FGT) poverty index was used to assess the poverty status of the beneficiaries using conventional poverty line of $1.9 and Islamic general poverty line of ₦165,373.33 per month. Findings of the study revealed higher poverty incidence before receiving zakat than after receiving zakat. Poverty incidence for the core poor and moderate poor among the beneficiaries was 37.9% and 33.2% before receiving zakat, 30.7% and 28.4% after receiving zakat respectively. This situation implied that zakat has reduced the level of poverty of the beneficiaries. Therefore, the study recommends that zakat distribution should be extended to more communities in the state. And the beneficiaries should engage into more productive activities that will make them to become zakat givers in the future

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Published

2022-06-30

How to Cite

Maryam Magaji, Duru Mike, & Soliu Hamzat. (2022). Analysis of the Effect of Zakat on Poverty Alleviation in Kano State, Nigeria. UMYU Journal of Accounting and Finance Research, 3(1), 90–105. https://doi.org/10.61143/umyu-jafr.3(1)2022.005