Zakah Institution and Poverty Alleviation Nexus in Kano State, Nigeria: A Structural Equation Model Approach

Abstract

This study empirically examines the impacts of Zakah institution on poverty alleviation using Structural Equation Model approach. This is in view of the socio-economic and spiritual significance of Zakah institution in Muslim societies like Kano state, Nigeria. Kano state is the most populated state in Nigeria with over 15 million people and poverty rate of over 70%. Therefore, in order to achieve the objectives of this study, primary data through questionnaire method was utilized and 1,230 copies of questionnaires were administered but only 899 were considered usable. Basically, the findings emanating from this study support Zakah effectiveness hypothesis. In this connection, Zakah payment has positive impact on poverty alleviation. Also, Zakah awareness and perceptions have positive effect on poverty alleviation. Similarly, effective and efficient management of Zakah positively affects poverty alleviation. As a matter of fact, this study recommends that Zakah institution should be adopted as a core fiscal measure for poverty alleviation in Muslim societies like Kano state with necessary and required legal and political supports. Also, more awareness and public advocacy should be intensified to mobilize and motivate especially high ability Zakah payers like the business class, for enhanced Zakah revenue. More importantly, trustworthy, sincere and competent people should be assigned to operate and manage Zakah institution, so as to optimize its revenue potentials in Kano state.