Poverty amidst many Zakah payers

Zakah is one of the five cardinal principles of Islam, listed as third after faith (Imam) and prayer (Salat). Besides the Zakat ul-Fitr which is obligatory on all Muslims without any exemptions, it generally refers to the obligatory dues which a well-off Muslim (male or female, adult or minor) is required to pay to an […]

Zakah is one of the five cardinal principles of Islam, listed as third after faith (Imam) and prayer (Salat). Besides the Zakat ul-Fitr which is obligatory on all Muslims without any exemptions, it generally refers to the obligatory dues which a well-off Muslim (male or female, adult or minor) is required to pay to an appropriate authority as specified in Qur’an 9:60. Islam provides that a Muslim pays Zakah on currencies (such as naira, dollar and pound), livestock and agricultural produce when they reach a minimum taxable amount or quantity called Nisab in Islamic literature.
In terms of cultivated crops, Zakah is paid on cereals, grains, dates, grapes and olives. The Nisab in all cases of agricultural produce is five awsuqs or 1,200 measures of the prophetic bowl (Mudu n-Nabbiy). The Zakah on agricultural produce is paid once in a farming season and at the time of harvesting the crop. Then Zakah that is due on crops is 10 percent or one-tenth if the cultivation was through rainfall. However, five percent (or one-twentieth) is the Zakah that is due on agricultural produce if irrigation was used. As for livestock, Zakah is paid in respect of four species namely; camels for which the Nisab is five camels; cattle for which the Nisab is 30 heads; sheep and goats for which the Nisab is 40 heads.
A person who trades in gold and silver is required by Islamic law to pay Zakah on the commodity if it reaches the Nisab put at 20 pieces of gold (dinar) or 200 pieces of silver (dirham) provided the gold or silver has been in his ownership for a period of not less than 12 lunar months. Local currencies across the world, including the naira, are interchangeable with gold or silver. Therefore, for businesses in local currencies, the Zakah to be paid on the Nisab is one-fortieth of the investment. Thus, when a business attains the equivalent of the gold Nisab, Zakah is required to be paid from its net stock at the rate of 2.5 percent every lunar year. The Nisab, for instance, on which Zakah is payable in a particular investment in the current year 1437AH is put at N664, 944.00 which is the current cost of 20 pieces of dinar.
Regrettably, the widespread poverty, especially in northern parts of Nigeria, does not reflect a region where Zakah is sufficiently paid. A recent media report in the Daily Trust edition of Tuesday October 27, 2015 indicates that Nigeria, a comparatively rich country on the African continent if not the richest in the West African sub-region, is behind Sudan and South Africa in Zakah collection. The report was released by the Islamic Research and Training Institute (IRTI) during a conference on “Awqaf, Zakah and Ethical Microfinance as Tools for Empowerment,” which was organised by the South African National Zakah Fund (SANZAF) in Pretoria, South Africa.
The report, which was the second in the series, estimated the annual Zakah potential in Sudan, Nigeria and South Africa at about $1,843.51 (N362 billion); $8,776.45 million (N1.7 trillion); and $178.87million (N35billion) respectively. Amazingly, the actual collection in 2013 for the three countries was $220 million (N43 billion); $3 million (N591 million); and $100 million (N19.7 billion) respectively. The IRTI report analysed the regulatory environment and practices in six selected countries namely Sudan, Nigeria, Kenya, Mauritius, South Africa and Tanzania.
Findings in the IRTI report show that Sudan, Nigeria and South Africa can easily generate adequate resources for poverty alleviation through Zakah, while Islamic social finance equally has great potential for curbing poverty in the three other countries studied. Key recommendations in the report include enhancing the legal framework for Islamic social finance; institutionalising Zakah collection and distribution; offering unique microfinance products for small-holder farmers; and allowing waqf creation by non-Muslims.
Zakah is an apparent manifestation of the spiritual and humanitarian spirit of responsive interactions between an individual and the society in which he lives. It is a concrete demonstration of the fact that Islam though does not hinder private enterprise or condemns private ownership of property; yet, it does not support or tolerate capitalist tendencies of greed and selfishness. It provides a social platform where the haves and the haves-not meet to share in their respective economic fate.  Zakah is an expression of the general philosophy of Islam which adopts a moderate and modest but effective course between the individual and the society, between capitalism and socialism, and between materialism and spirituality.
Thus, where it is noticed that Zakah is neglected or is not duly paid, rightful authorities from among leaders of Muslim communities have a duty of ensuring that collection and distribution mechanisms of the institution are strengthened and enforced. The Northern States Governors’ Forum (NSGF) should see the administration of Zakah as part of their mandate of reducing poverty in the region. The abysmal poverty rate in the northern part of the country makes a mockery of the Zakah commissions established 15 years ago by most northern states during the days of the popular Shari’ah implementation wave led by the then Governor Ahmad Sani of Zamfara State. Given the tally of potential Zakah payers in the country; many Nigerians (Allah knows best) shouldn’t have been as poor as they are today if Zakah were duly paid on the visible wealth we can see around us.
Poverty would be alleviated to a great extent if Zakah is paid by all those who meet the criteria of paying it and to appropriate recipients. Zakah paid to a person not deserving is no Zakah. The list of beneficiaries mentioned in the Qur’an captures most of those who add up to the number of the underprivileged in the society. They include the poor, the needy, the indebted, the wayfarer, people in bondage, new converts in to Islam, employees of Zakah administration, and in the cause of Allah which may extend to a wide range of initiatives or schemes such as scholarships to indigent students and building schools or hospitals. Poverty would have significantly lessened by the time each of the eight categories of recipients is catered for by Zakah proceeds.
Zakah is not a personal matter or a voluntary contribution. It is, rather, an obligation over which one will directly be questioned by Allah (SWT). Let us strive to reduce poverty through the proper administration of Zakah. May Allah (SWT) guide us to effectively manage the institution of Zakah so that it serves the purpose it is divinely meant for, amin.