Academia
Volume 6, Numéro 3, Pages 66-74

Potentials Of A Waqf-bank Towards Poverty Alleviation In The Muslim Communities Of Nigeria

Authors : Muhammad Shehu Nasiru .

Abstract

A Waqf creates and preserves long term assets that generate income flows, or indirectly helps the process of production and creation of wealth. A (Waqf) is one of the major financial hubs and source of finance of Muslim economy. Being it (Waqf) a bank however, can pave a way to reaching its maximum capacity utilization. Therefore, a Waqf when sophisticatedly structured as a bank offering micro-financing service could definitely help towards reducing poverty within Muslim communities in Nigeria. Hence, a cherished dream of Muslim ummah to have an interest-free economy became reality in Nigeria. Thus; a Waqf can be a bank. Remarkably then, a Waqf-bank will not only grow the Waqf fund, but equally uplift the entrepreneurial enthusiasm of the poor to income generation and consequently poverty reduction. This is clear as the poverty incident became part and parcel of Muslim communities, which trend is likely to continue unless an appropriate alternative measures such as Waqf are employed. Therefore, with the viable and veritable products and services offered by Islamic Micro-finance bank, a Waqf-bank as a similar institution could by appreciating and adopting the model, support the economy of the poor’s, and effectively sustain the life of it. Notwithstanding, the paper is to explore the potentials for Waqf as a microfinance bank in Nigeria.

Keywords

Waqf, Poverty, Bank and Nigeria.