Towards Harmonizing the Problems Affecting Zakat Management and Practices in Kano by vinay kumar

Towards Harmonizing the Problems Affecting Zakat Management and Practices in Kano Sheriff Muhammad Ibrahim Yobe State University, Niegria Sheriffalmuhajir@gmail.com

Abstract: In recent times, there is a growing concern among the researches and practitioners of Islamic Economics systems regarding the rising poverty condition among the Muslim community despite the sharia mechanisms for poverty alleviation. These financial difficulties does not only stop at Muslim states or communities that did not accept the legislation of zakat but transcends to states with active legislation and established institution of zakat. Many theoretical and empirical research indicates problems affection zakat institutions but scholars have identified that these problems are not identical or replica to one another, each community have their issues affecting their zakat management institutions and practices according to their circumstances. Thus, scholars recommends that studies on zakat management problems should be done independently according to each community. This will researchers make sound and feasible recommendation. This study explores the problems affecting the zakat management and practices in Kano. The aim of the study is to for the zakat management institution, the ulamas, researchers, zakat beneficiaries, zakat payers and general public understand his role and contribution towards a better zakat systems to reduce the widespread poverty among the Kano communities and elsewhere with similar circumstances.

1. INTRODUCTION Zakat is a tool employed by Islam to help in redistribution of wealth and ensuring sustainable development among Muslim societies. Practically, various studies have shown the role of zakat in establishment of welfare, social justice, and poverty alleviation among many Muslim societies. But this situation was not the case in Kano, despite being the most populous Muslim community in Nigeria, and the center of commercial activities in Northern Nigeria, poverty and social welfare loss are some of the most visible phenomena in the state. To address these problems, Kano State government established various programs and institutions including Zakat and Hubusi Commission, the problems are still in existence. Muslim countries and communities across the globe have intensified the quest for institutionalization of zakat management, to help reduce the widespread poverty among the communities. This resulted in practical commitments and efforts towards establishments of zakat institutions. Currently, many Muslim communities engaged in humanitarian activities through collecting zakat from the rich to redistribute to poor. Data on Muslim demographics, shows that the humanitarian assistance mobilized by government and other organizations within the Organization of Islamic Cooperation (OIC) grew from USD 599 million to over USD 2.2 billion. This figure raised the total share of Muslim contribution to humanitarian assistance among the Muslim communities from 4% to 14% (Pew Research Center, 2014; Global Humanitarian Assistance, 2014). However, despite the established role of zakat in poverty reduction and income distribution, some scholars yet argue that zakat alone would not be sufficient to address poverty. Kahf (1989) argues that if zakat proceeds are targets only at redistribution of wealth among the poor, it may only increase consumption of the recipients. This is in contrast with the study by Nur Hafizah and Shafinah (2012) which indicates that the systematic zakat management and its administration have played an immense role in reshaping the economic standards of many Muslim societies. They both maintained that zakat proceeds if properly managed could eradicate poverty, establish social justice and develop healthy ambience.

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ISSN 2348-3156 (Print) International Journal of Social Science and Humanities Research ISSN 2348-3164 (online) Vol. 8, Issue 3, pp: (90-94), Month: July - September 2020, Available at: www.researchpublish.com 2. PROBLEMS AFFECTING ZAKAT MANAGEMENT AND PRACTICES IN KANO Muhammad (2006) discovers that Kano State Zakat and Hubusi Commission needs to improve its services by ensuring adequate awareness and sensitization as this will consolidate the ties between the zakat givers and its managers. In order to deal with the issues related to zakat management, the institution must consider a suitable approach to convince the society through proper administration; a slower response by the institution will only have a negative impact on the development of zakat institutions. Stirk (2015) address two important barriers slows the improvement in zakat management to achieve its objectives; ideological and logistical barriers. Ideological barriers are conflicting views on the traditional concepts of zakat, especially the concept of zakat distribution to non-Muslim beneficiaries. Although, zakat distribution to non-Muslims has been a subject of debate in zakat management, the ideological issues exceeds to include all aspects of zakat management, including payment of zakat through official systems, collection and distribution methods, and jurisprudential differences among the various schools of fiqh. Most arguments emerged in respect to identification of zakat payers, the ratio of zakatable amount, what to give and how to give zakat. The concepts of zakat beneficiaries and the criteria for zakat recipients are also debatable among Islamic jurists. Logistic issues are identified in explaining the way to streamline and formalize the zakat collections, management, and distribution in line with the contemporary practices of financial institutions. Stirk (2015) further suggests continued intellectual discussions with professionals including; academicians, Islamic scholars, theologians and practitioners to share learning and experiences on zakat management and its contemporary applications. The modernization of zakat management to meet the standards and requirements of financial institutions, and the involvement of non-governmental organization in zakat management are emphasized. Many scholars identify ideological and logistical problems as major problems affecting zakat institutions. Muhammad (2014) maintained that despite the fact that zakat is among the five principles of Islamic faith, zakat systems still suffer from definitional misconceptions, a situation that is seen as a major factor contributing to problems in zakat management. He stressed that problems in the concept of professionalism versus traditionalism need to be studied to achieve a common goal. This shows that to propose a best practice for zakat management, there is absolute need to re-examine the theories and practices of zakat in both classical and contemporary age, this will help bridge the gap between professionalism and traditionalism and pave way to suggest a more effective zakat services that could earn public confidence. Problems in zakat management systems have been discussed in other studies that include; Shahir and Adibah (2010); Zainal Abidin (2006); Nur Fadilah et al.( 2006); Nur Bazirah et al. (2006); Kamil (2005) ; Jamaliah (2004) and Ismail (2006. These studies have concluded that zakat institutions are yet to meet the standard of effective managements especially with regards to collection and distribution. Kamil, (2005) for instance, insisted that a big population of zakat payers are doubtful about either the sincerity or ability of zakat institutions in management of zakat funds. Similarly, Shahir and Adibah (2010) indicate that many zakat payers questioned the credibility of zakat institutions management systems, making it difficult for them to make their payments through such organizations, but pay directly to the recipients. Shahir (2007) found that only about 10%-15% of zakat payers in Selangor state of Malaysia pay their zakat through the zakat institution. However, some studies indicate that there are efforts to enhance the management systems of zakat by some zakat institutions to encourage zakat payers. This is done through the introduction of professional financial services, accounting practices, and strategic planning and performance management systems (Shahir & Adibah, 2010). In the same vein, Jamaliah (2004) questioned the extent of the implementation of the performance management of the organizations, while Azizah (2005) faults some zakat organizations for not understanding the purpose of budgeting before presentation if the budgets which led to failure in achieving the budgets. In another study conducted by National Board of Zakat of Republic of Indonesia (BAZNAS) (2014), zakat management problems are related to lack of collaboration among the various zakat institutions to share knowledge and expertise since a united zakat platform is difficult to be established. Lack of cohesion among various zakat institutions are seen as a major factor leading to inefficiency in zakat management. Generally, three major problems affecting the zakat institutions are identified; ideological, logistical and lack of collaboration between zakat institutions. Zakat management is one of the efforts established by the Kano State Government in 2003 under its program, Kano State Economic Empowerment and Development Strategy (K-SEEDS). This program aims to reduce the prevalence of poverty in the state. Thus, the state government established its first and only zakat institution named “Zakat and Hubusi

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ISSN 2348-3156 (Print) International Journal of Social Science and Humanities Research ISSN 2348-3164 (online) Vol. 8, Issue 3, pp: (90-94), Month: July - September 2020, Available at: www.researchpublish.com Commission” (Kano Gazette, 2003). The establishment of zakat commission replaced the former zakat organization that used to serve the state as a non-governmental body. In short, the Zakat and Hubusi Commission now serves as the official body charged with zakat collection, management and distribution which was once a voluntary work of a Zakat institution (Ostien, 2008). Astonishingly, despite these efforts, poverty is clearly a witnessing fact in Kano. This situation has attracted the attention of many researchers and has raised many questions regarding the programs and the methods adopted in these implementations. The presumed issues associated with zakat management practices in Kano includes; conflicting views related to ideological concepts of zakat that requires a comprehensive study to address issues from both contemporary and traditional practices (Wambai, 1991). Disorganized application of zakat management causes difficulties in understanding and establishing relationships between the zakat payers and the zakat managers (Muhammad, 2010). Kurawa (2008) also discovered that inefficient collection and distribution of zakat is one of the focal reasons that contribute in prevalence of poverty among the people of Kano. This study observed that the above-mentioned problems are the same issues found as predicaments for the inefficiency of zakat institution in Kano. For instance, Wambai (1991) states that ideological problems resulting from the conflicting views and limited awareness of definitional concepts of zakat are among the reasons that contribute to inefficient zakat management in Kano. This problem is in line with Muhammad (2014) that contradictory views on the traditional concepts of zakat are among the major problems affecting its management. Stirk (2015) insists that unless ideological issues are solved zakat institutions will continue to face problems. Second major problem of zakat management in Kano is disorganized zakat management system as Muhammad (2010) observes. This coincides with the findings of Stirk (2015) who argues that disorganization is major logistical problem affecting the zakat management. This problem is also stressed in (Ahmad Shahir & Adibah, 2010; Zainal Abidin, 2006; Nur Fadilah et al., 2006; Nur Barizah et al., 2006). The third problem identified in Kano is ineffective system of zakat collection and distribution methods that discourage the zakat payers to pay through the zakat institution (Kurawa, 2005). This is similar to a problem mentioned in National Board of Zakat of the Republic of Indonesia (2014) which suggests collaborative exercises between the various zakat institutions to mend the gap.

3. CONCLUSION This study explores the limited empirical researches done in order to examine factors leading to the inefficiency of zakat management, collection, and distribution in Kano, Nigeria. This work if utilized may be significant in improving the zakat systems in the following ways: Policy Making: Considering the efforts made by many Muslim communities especially the Kano State Government in reviving the zakat management system by establishing the zakat law 2003, it becomes clear that the government may welcome further researches focusing on improving the zakat management in the state. Although, most studies that aimed at reviewing government policies are mostly considered if the government initiated them. However, personal efforts may be given consideration to a limited extent. This work can be an aid to the policy makers in their efforts to establish suitable policies for the zakat management, and will contribute in improving the services of Zakat and Hubusi Commission, and any other zakat organization. Muslim Scholars: This study might be of immense importance to the Muslim scholars in Kano and elsewhere. In the State, there are high profile Islamic scholars and the state is a center of Islamic knowledge in Northern Nigeria; these scholars engaged in Islamic preaching in mosques and at other congregational occasions. Using this study may direct them in guiding the public to the best models of zakat management and elevate the level of their knowledge on the obligation of zakat. Zakat givers: Rich Muslims in Kano have begun to realize the obligation of zakat and its importance in the religion, therefore the quest on zakat and its application becomes inevitable. This research will enlighten the zakat givers on the aspects of percentages and time due for zakat. It may also be used to convince the zakat givers to recognize the Zakat and Hubusi Commissions as the official bodies charged with zakat services in the state. Zakat recipients: Problems related to multiple collections of zakat, collection of zakat funds by people not legible for zakat and inefficient use of zakat funds by the zakat recipients have become widespread. This study puts light on assisting

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ISSN 2348-3156 (Print) International Journal of Social Science and Humanities Research ISSN 2348-3164 (online) Vol. 8, Issue 3, pp: (90-94), Month: July - September 2020, Available at: www.researchpublish.com the policy makers to design better ways of collecting zakat; avoiding multiple collections; restricting illegal allocation of the funds to people not entitled for zakat; and guiding the recipients on better ways to manage the collected funds. Public: This research also demonstrates the relevance of Islamic economic systems through the adoption of systematic zakat management as a corporate social responsibility set to help in bringing sustainable developments among the communities. Economic situation: The significance of this study supports the hypothesis that zakat could be used as important determinant for economic growth in Kano. Therefore, the study suggests that Kano state and all Muslim countries must improve the efficiency of zakat collection and spend it prudently.

4. RECOMMENDATION This is only a conceptual study curved out of a larger ongoing study on the practices of zakat institutionalization and management in Kano, thus the study recommends a thorough and elaborative work that will be able to provide answers on current issues related to the zakat institutionalization among Muslim communities, the best practices of zakat institutions management in other Muslim countries, the current practices of zakat management among Muslim communities in Kano and identify the practices of zakat management suitable for adoption by Kano state zakat institution. Such study will help to comprehend issues related to institutionalization of the zakat among Muslim communities, explore various models of zakat management including government institution model practiced in different Muslim counties, examine the current practice of government institution model of zakat management in Kano and make a relevant recommendation for zakat management in Kano, with a view to reach a more efficient and equitable distribution of wealth and income in the society. REFERENCES [1]

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ISSN 2348-3156 (Print) International Journal of Social Science and Humanities Research ISSN 2348-3164 (online) Vol. 8, Issue 3, pp: (90-94), Month: July - September 2020, Available at: www.researchpublish.com [12] Nur Hafizah, Mohamad and Shafinah, Rahim. 2012. “Role of Zakat in Reducing Poverty in Sarawak” Faculty of Economics and Business (UNIMAS) Sarawak. [13] Nur Bazirah, Abu Bakar, Hafiz, Majdi Abdul Rashid. 2010. Motivations of Paying Zakat on Income: Evidence from Malaysia. International Journal of Economics and Finance Vol. 2, No. 3; August [14] National Board of Zakat of the Republic of Indonesia (BAZNAS) and the Central Bank of the Republic of Indonesia, 2014. Towards an Establishment of an Efficient and Sound Zakat System. Presented at the Working Group of Zakat Core Principles. www.zakat-chamber. gov.sd/english/files/zakah_core_principles.pdf [15] Ostien, Philip 2008. Sharia Implementation in Northern Nigeria 1999-2006: A Sourcebook [16] Stirk, Chloe. 2015. An Act of Faith Humatarian Financing and Zakat. Global Humanitarian Assistance, Uk Office. [17] Wambai, A. I. K. 1991. Islamic Endowments and their Situation in Kano State Unpublished M.A. Thesis, Islamic Studies Department, Bayero University, Kano. [18] Zainal Abidin, J. 2006. Pengurusan Agihan Zakat: Pengalaman Baitulmal Wilayah Persekutuan Kuala Lumpur: Universiti Kebangsaan Malaysia.

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