* Figures increased by 28.2% despite economic downturn
Five leading Zakat agencies in Nigeria disbursed an estimated sum of 736 million naira to 4,234 beneficiaries in the outgone year 2024, according to a data analysis conducted by Muslim News Nigeria.
The figure, our analysis showed further, represented a 28.2 per cent increment compared to last year’s disbursement by the same Zakat agencies.
Records show that the sum of 574 million naira was disbursed by the five leading zakat agencies in 2023.
The sharp increment was witnessed in 2024 despite the economic downturn ravaging the country.
The agencies involved in the disbursement include the Zakat & Sadaqat Foundation, Lekki Muslim Ummah (LEMU) Zakat Committee, Nasrullahi-Fatih Agency for Zakat and Sadaqat (NAZAS), Jaiz Charity and Development Foundation, and The Companion.
Muslim News reports that zakat is the third pillar of Islam. Wealthy Muslims who have reached the threshold (nisab) are to pay zakat annually as mandated by the religion.
This religious obligation dates back to the reign of Prophet Muhammad (SAW) and has continued to the current generation of Muslims.
Our findings revealed that there are several institutions established for zakat mobilisation, most of whom are non-governmental. However, state governments in the northern part of Nigeria form committees to mobilise and disburse zakat to their citizens who are predominantly Muslims.
The five leading zakat agencies under review in this report disbursed their zakat proceeds to the needy and less privileged members of the society following a series of processes.
Their disbursements went into different categories, including economic empowerment, education, health, and debt settlement, among others.
Z&S Foundation
Founded in the year 2000, the Zakat and Sadaqat Foundation was a result of creative ideas to revive zakat considered the most neglected pillar of Islam. It was floated by The Muslim Congress (TMC), one of the leading faith-based organisations in Nigeria.
The Zakat and Sadaqat Foundation was inaugurated as a not-for-profit organisation with the primary objective of delivering quality zakat assessment, collection and distribution services to both private and public individuals as well as corporate organisations as provided in the Qur’an.
Out of the N736m disbursed by these leading agencies in 2024, Zakat and Sadaqat Foundation accounted for 52.3 per cent, having disbursed N385m in the outgone year.
No less than 2,897 persons benefited from Z&S Foundation’s disbursement across 27 states of the country.
According to the Executive Director of the Foundation, Prince Sulaiman Olagunju, “the 2024 zakat disbursement exercise began in June with the distribution of N30 million to 300 widows and indigent students.
He also noted that there was 31 per cent increase in this year’s zakat disbursement over last year’s.
NAZAS
They were followed by the NASFAT Agency for Zakat and Sadaqat (NAZAS), which is the zakat arm of another leading Muslim group, Nasrullah-l-Fatih Society (NASFAT).
Created in 2014, NAZAS is responsible for the collection and distribution of zakat, as it disbursed the sum of 130 million naira among 300 beneficiaries as Zakat in the year under review. This figure accounts for 17.7 per cent of the aggregate disbursement.
Transition Chairman of NAZAS, Alhaji Abdulwahab Abdulrahman, expressed satisfaction that the disbursement went well, noting beneficiaries are not limited to members of NASFAT alone.
He said NAZAS has zonal branches across Nigeria, including in Kaduna, Kano, Abuja, and even beyond the shores of the country in Côte d’Ivoire.
LEMU
The Lekki Muslim Ummah (LEMU) Zakat Committee accounted for 14.8 per cent of the total disbursement, sharing the sum of N109m as Zakat among 360 beneficiaries during the year.
Muslim News gathered that the 2024 zakat collection witnessed a significant rise of about 24 per cent over last year’s despite the country’s harsh economic realities.
Alhaja Ronke Akinlusi, both members, Zakat Committee of LEMU during Lekki Muslim Ummah (LEMU) annual Zakat Disbursement programme held at Lekki Central Mosque, Lekki, Lagos.
“I’m pleased to report a modest increase in our zakat collection for the year, a remarkable achievement considering the current harsh socio-economic environment. Alhamdulillah!
“With the support of LEMU members and all generous zakat givers the amount collected went up from N85 million last year to about N105 million in the current year, a significant increase of about 24%,” Chairman of LEMU Zakat Committee, Alhaji Olalekan Saliu said in his remarks at the event.
Jaiz Foundation
They were followed closely by the Jaiz Charity and Development Foundation, which is the zakat and sadaqat arm of the first Islamic and ethical bank in Nigeria, Jaiz Bank Plc.
Jaiz Foundation disbursed a total sum of N70m to 507 beneficiaries in 2024. This figure represents 9.5 per cent of the total disbursement by the five leading agencies for the year.
Established in 2012, Jaiz is charged with the mandate of managing certain types of income not recognized by the bank (non-permissible incomes) or the ones classified as doubtful by the bank’s Advisory Council of Experts (ACE).
Muslim News, however, gathered that other sources of income for the foundation include zakat obligations, endowments, donations, income from investments and grants, among others.
The Companion Zakat & Sadaqat Fund
Also among the zakat agencies that contributed to the N736m disbursement in 2024 was The Companion, an association of Muslim men in business and the professions.
The Companion’s zakat committee distributed the sum of 42 million naira among 179 beneficiaries for the outgone year.
The Companion’s disbursement represented 5.7 per cent of the total disbursement.
In his remarks, the chairman of the Zakat Committee, Imam Nojeem Jimoh expressed delight that despite the economic meltdown in the country, payment of zakat to The Companion has increased continually over the years.
“Despite the economic meltdown and the challenges in the country, the amount that Muslims paid in zakat has increased on a continual basis. From N25 million four years ago, to N32 million year after, and N36 million last year. This year, we are distributing N42 million.
Disbursement cuts across states of federation
The data also revealed that the disbursements by the five leading zakat agencies cut across states of the federation and were not limited to a state or geopolitical zone.
Lagos, Abuja, Kwara, and Oyo were, however, states that featured prominently in the analysis.
Muslim News gathered that the disbursement went into various categories, including empowerment of artisans, traders and small-scale businesses, house rent payment support, education support, and health-related challenges support, among others.
Put the zakat proceeds to beneficial use, Prince Olagunju urges beneficiaries
“Alhamdulillah, through this noble charitable deed, we were able to provide access to medical treatments for several less-privileged people who have regained good health while some are still in the process of receiving treatments. We pray Allah grants them speedy recovery,” the Executive Director said.
Prince Olagunju, while speaking at the disbursement ceremony held on Saturday, 14th September at the Lagos Chamber of Commerce and Industry (LCCI), Ikeja, charged the beneficiaries in the economic empowerment category to put the zakat funds to good use in order to be self-reliant in the coming years.
“It is pertinent to admonish the zakat beneficiaries to make the best use of the zakat allocated to them so that in the coming days, they will be self-reliant and financially independent during this harsh and difficult times and beyond.”
Zakat is pillar of Islam – LEMU President
LEMU President, Dr. AbdulGaniy Olusola Labinjo, in his welcome address said zakat is a pillar of Islam that is obligatory for all Muslims whose wealth has attained the nisab (threshold to pay zakat).
Speaking at the disbursement held on Saturday, June 8, 2024 at the Lekki Central Mosque, Lekki, Lagos, Dr. Labinjo noted that LEMU applies the shari’ah strictly in its zakat administration.
“We continue to fine-tune our mode of processing the applications to ensure that they are carefully scrutinised by men and women of integrity who see the assignment as amana (trust) without fear or favour. We do not apply favouritism or any undue manipulation or influence.
“Our strategy is to achieve poverty alleviation in practical terms with the expectation that in the not too distant future, some of these beneficiaries shall in turn become zakat payers, in shaa Allah.”
We will continue to use Islamic social finance to alleviate poverty: Dr. Shuaib
Dr. Abdullah Shuaib, while speaking at the zakat disbursement held in July 2024 at the Abuja National Mosque Conference Hall, stated that Jaiz Foundation would continue to deploy its Islamic social finance instruments to alleviate the hardship of under privileged Nigerians.
According to him, “We will also continue to soothe their pains and provide an enabling environment to accomplish the sustainable development goals of the United Nations such as no poverty, zero hunger, good health and well-being, quality education, clean water and sanitation, and decent work and economic growth among others.
“It is no longer news that the hard times are here. The resilience of Nigerians is second to none. Permit me to reiterate our commitment to wipe the tears of the less privileged and put smile on their faces. We are inspired by the words of our Prophet Muhammad (PBUH):
“Whoever relieves a Muslim of a burden from the burdens of the world, Allah will relieve him of a burden from the burdens on the Day of Judgement. And whoever helps to ease a difficulty in the world, Allah will grant him ease from a difficulty in the world and in the Hereafter’. (Jami’ at-Tirmidhi 1930)”, he added.
The disbursement marked the exit of Dr. Shuab as the Chief Executive Officer after eight years of meritorious service in making Jaiz Foundation a leading Islamic charity and development organisation in Nigeria.
Current economic downturn not an excuse to evade zakat: Onike
The National Missioner of NASFAT, Sheikh Onike who spoke at the disbursement ceremony held on Sunday, 21st July at the CIPM House, Ikeja, Lagos admonished that the current economic downturn in the country should not be an excuse for Muslims to stop paying zakat once they can afford it.
“Allah has never promised us that everything will go on smoothly all the time. It is even now that some people are making money. Everybody is complaining that there is no money, but some people are smiling to the bank.
“Regardless of the economic situation, the Muslim community should continue to give zakat to the vulnerable. It is a religious duty. There will always be people who can afford to pay zakat, and they must pay it.”
The Islamic scholar lamented that wealthy people lavish resources on insignificant things, noting they need to share their resources with other people in the society.
Prioritise training of beneficiaries on entrepreneurship: Ex-NAHCON boss
The former Chairman/CEO of the National Hajj Commission of Nigeria (NAHCON), Alhaji Zikrullah Kunle Hassan, called on zakat institutions to prioritise the training of beneficiaries on entrepreneurship and business ideas.
He said this is important to eliminate the situation where people become perennial receivers of zakat after failing to utilise previous zakat funds judiciously.
The former NAHCON boss made this statement on Sunday, 26th May at the 2024 zakat fund distribution ceremony of The Companion, an association of Muslim men in business and the professions, where he was the guest lecturer.
In his lecture, Alhaji Hassan said zakat collection should be seen by beneficiaries as a way to either ease a temporary difficulty or establish a business that will take them out of poverty.
He urged zakat institutions to embrace training on entrepreneurship for beneficiaries, especially those who fall in the business category.
“Importantly, we need to sensitise our people that zakat is not what you get year in year out. You are supposed to see zakat collection as a way to either temporarily ease your difficulty or for you to use the opportunity to engage in businesses that can take you out of the poverty line. So, the receivers need to understand that they are not supposed to be perennial receivers,” he said.
“We also need to up the knowledge of entrepreneurship. When people get money and they don’t know how to use it to get more money, it could be a problem. So, we need to be engaging the would-be receivers of zakat, particularly those into business, on entrepreneurship and how best to utilise the money for business.
“The volume of money you need to do business in Nigeria today is much considering the current situation. But against the amount available and the need to ensure that it gets to as many people as possible, we just have to manage,” he added.
Great report. More power to your elbows Muslim News
May Allah SWT increase the wealth of those who paid the obligatory Zakkah and those intending to participate whenever the amount in their possession reach the limit.