Impact of Zakat and other Socio-Economic Factors on Poverty Alleviation in Kano State, Nigeria

Abstract

This study examined the impact of zakat on poverty with specific interest on some selected zakah communities. 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. Logit regression was employed to measure the determinants of poverty among the beneficiaries. Findings from the logit regression revealed that beneficiaries with larger family size, beneficiaries that uses Zakat proceed for investment not for consumption and beneficiaries that reinvested their capital reduced the likelihood of the beneficiaries to be poor while access to formal education, affordability of at least three square meals a day, higher number of dependents in school, increases the likelihood of a beneficiary being poor. Therefore, the study concludes that Zakat had impacted positively on poverty status of the beneficiaries. The study recommends that the Zakat distribution should be replicated in more communities across the state. There is need to educate the Zakat beneficiaries on how to use their proceeds efficiently.