A PAPER PRESENTED AT THE MUSLIM SCIENCE STUDENTS' ASSOCIATION (MUSSA) EKITI STATE UNIVERSITY, ADO EKITI

1. 6/19/2016
POVERTY
ALLEVIATION IN
NIGERIA
Our role as Muslims
Oladejo Abdulganiy
Usman Ahmed
FEDERAL UNIVERSITY OYE-EKITI

2. TABLE OF CONTENTS
INTRODUCTION............................................................................ 2
CONCEPTUALIZATION OF POVERTY ................................................. 2
Poverty alleviation measures in nigeria ..................................................... 4
POVERTY ALLEVIATION: THE ROLE OF MUSLIMS ................................ 5
ZAKAT AS MEANS OF POVERTY ALLEVIATION ...................................5
SELF-EMPOWERMENT (entrepreneurship) ..............................................6
WAQF AS MEANS OF ALLEVIATING POVERTY ....................................7
Desisting from usury and corruption as means of eradicating poverty 8
CONCLUSION ............................................................................... 8
REFERENCES ............................................................................... 9

3. INTRODUCTION
One of the most disturbing features of the world, particularly the Third World to which
Nigeria belongs to is poverty (Oriah and Itufe, 2010). It remains the greatest impediment to the
development of most third world countries. Poverty, injustice and lack of development are serious
problems confronting Nigeria today. Poverty is a disease that needs to be eradicated in our society.
Nigeria has one of the world's highest economic growth rates, averaging 7.4% according
to the Nigeria economic report released in July 2014 by the World Bank. Yet, more than 60% live
below poverty line (BBC NEWS, 2012). In fact the country has been tagged with the name rich
country, poor people.
This essay is going to carefully discuss the meaning of the word poverty, strategies and
measures taken both in the past and present to eradicate poverty in Nigeria as well as the roles of
the Muslim Umma in poverty alleviation.
CONCEPTUALIZATION OF POVERTY
Poverty is not a self-defining concept, it is a multi-dimensional phenomenon. Experts and
academics have suggested many definitions over time. For example, Lorenzo Giovanni (2005) said
poverty could be the lack of command over commodities in general; alternatively, it could be the
lack of command over some basic goods (e.g., food and housing). More generally, Sen, 1985,
argued that poverty is the lack of “capability” to function in a given society. All these definitions
point to poverty as a situation in which a reasonable standard of living is not achieved. According
to the World Bank (2001), Poverty is the lack of, or the inability to achieve, a socially acceptable
standard of living. In the above definition given by World Bank, there are three key terms: Lack;

4. this is a situation where an individual lacks command over economic resources. For example, an
individual may be considered poor if he/she lacks the basic needs of life. Inability in the definition
can be refers to as the capability failure to participate in a society and can best be explained with
Sen’s capability approach. Roughly, the idea is that the individual has a space of “functionings”,
where these latter are either what a person is actually able to do (realized functionings) or the set
of alternatives he/she has (real functionings) (Lorenzo, 2005). The space of functionings may be
very basic such as food and shelter or complex such as freedom, self-respect, social inclusion, etc.
The third term which is standard of living refers to the socially accepted standard in a particular
area. The socially acceptable standard may be to own a car, therefore, an individual that makes use
of public transport may be deemed to be poor.
Poverty as a concept may be thought of as either absolute or relative. In the World Summit
on Social Development in Copenhagen in 1995, 117 countries adopted a declaration and
programme of action which included commitments to eradicate “absolute” and reduce “overall”
poverty as noted by Dr David Gordon Professor of Social Justice School for Policy Studies
University of Bristol. At the summit, absolute poverty was defined as "a condition characterized
by severe deprivation of basic human needs, including food, safe drinking water, sanitation
facilities, health, shelter, education and information. It depends not only on income but also on
access to services." Absolute poverty is characterized by a condition where an individual lacks the
indispensable needs to a worthwhile life
Lorenzo, 2005, defined relative poverty as a standard of living defined in relation to the
position of other people in the income/expenditure distribution. In this sense, poverty is basically
a phenomenon of inequality.

5. Finally, Poverty in Islam is defined as a state whereby an individual fails to fulfil any of
the five basic human requirements of life (Religion, Physical self, Knowledge, Offspring and
Wealth.) (Olanipekun et al, 2015).
POVERTY ALLEVIATION MEASURES IN NIGERIA
There had been many poverty alleviation method put in place to reduce poverty in
Nigeria. Practically most of this methods look good, but all ended up in failure, for most of it is
either rooted usury or endangered by corruption. A typical example is the National Poverty
Eradication Programme (NAPEP) as a 2001 program by the Nigerian government addressing
poverty in Nigeria and related issues. It was designed to replace the Poverty Alleviation
Program. Alas! By November 25, 2010 it made the NBF news headline on allegation of
corruption.
More so most of the other poverty alleviation scheme for SMEs (Small and Medium scale
Enterprises) are based on Ribba (usury) which is against the Islamic rulings. For almighty Allah
said in the holy qur’an:
“O you who believe! Eat not riba (usury) doubled and multipled, but fear Allah that you may be
successful.” (Quran 3:130 English –Moshin Khan). Example of such agencies are FIRO (Federal
Institute of industrial Researching Osodi, SMEDAN (Small and Medium Enterprise
Development Agencies of Nigeria) and host of other agencies of such, are based on riba which is
unacceptable in Islam.

6. POVERTY ALLEVIATION: THE ROLE OF MUSLIMS
Islam is a religion that touches every part of human life; social, spiritual, economic,
psychological, demographic and all other aspect of life is already explained through Islam.
Therefore there must be a ready-made means by which poverty could be alleviated or even totally
eradicated through the rulings of the religion. Some of the roles of a Muslim in poverty alleviation
are as follows: Payment of Zakat; Self-Empowerment (entrepreneurship); Giving out Waqf;
Desisting from corruption and usury.
ZAKAT AS MEANS OF POVERTY ALLEVIATION
"True piety is this: to believe in God, and the Last Day, the Angels, the Book, and the
Prophets, to give of one’s substance, however cherished, to kinsmen, and orphans, the needy, the
traveler, beggars, and to ransom the slave, to perform the prayer, to pay the zakat.” (Qur’an
2:177)
Zakat is among the five pillars of Islam. A compulsory act in Islam for all those who are
qualified to pay it, to know how important the issue zakat is, it was talked about 42 times in 22
surahs of the holy Qur’an. In line with brotherhood concept which is emphasized in Islam, the
Holy Prophet (PBUH) in 9AH received obligation on Muslims to pay zakat on wealth. The
institution of zakat is a unique instrument and mechanism in Islam that is used to combat poverty.
Therefore one of the responsibilities of a Muslim in poverty alleviation is the payment of
zakat. Zakat is been paid so that the riches does not circulate among the rich alone but also extends
to the poor. It is a form of income redistribution; another person is empowered from the riches of
others without inflicting pain on the giver. For the rate is an infinitesimal amount, just 2.5% of the

7. wealth, in a whole year. Also the collector of zakat feels safe since he does not need to pay back,
unlike loan which he has to pay back probably within a given period of time.
SELF-EMPOWERMENT (entrepreneurship)
“To be an entrepreneur and be involved in business consists of exerting significant effort
and hard work, which is highly encouraged in Islam” (Obaid. 2015). Many of the early followers
of faith, including our Prophet Muhammad (P.B.U.H) were merchants and traders. In fact, much
of how Islam spread from West Africa to China was through traders. As the country with the
highest Muslim population in the world, Indonesia is said to have embraced Islam by witnessing
the strong ethics and beautiful character of Muslim businessmen and entrepreneurs they came
across, which speaks to the immense power of business that is driven by faith-based values.
Islam as a way of life encourages self-empowerment doesn’t just sit and watch something
being done, stand and do something. Islam does not condone laziness; it encourages us to be
hardworking. Begging is not an attribute of a good Muslim. We need to be creative this is the way
to liberate ourselves from poverty.
Prophet said: “No doubt, it is better for a person to take a rope and proceed in the morning to
the mountains and cut the wood and then sell it, and eat from this income and give alms from it
than to ask others for something.” [BukhariVol. 2, Book 24, Hadith 558]
The present situation of Nigeria’s labour market is quite discouraging you are either
underemployed or unemployed at all. The private sectors are characterised by the bourgeoisies
they want you to work more and pay you less, that even if you’ve got the opportunity to work. The
population of graduates grow day by day, even the population pyramid of Nigeria is a broad based

8. one, which means it is characterised by young population, more reason why we need to empower
ourselves.
WAQF AS MEANS OF ALLEVIATING POVERTY
Ahmed in his book mentioned that Waqf is” a voluntary act of charity” and is under the
same category as sadaqah and infaq. He further defines the word waqf into its linguistic and
technical meaning. Linguistically, “waqf” means to stand still, hold still and not let go”. The
technical meaning of waqf is to hold from consumption or sale and not to let go.
Yumna and Clarke, give the definition of waqf from two perspectives, linguistically and
from the Shariah perspectives. Linguistically, the word waqf means to stop, to contain or to
preserve. Looking from the perspective of Shariah, the term “waqf” is referring to an act of holding
certain physical assets and preserving it to the long term benefit of religious services.
The first waqf to be recorded in the history of Islamic world is the purchase of land and
construction of the Quba’ Mosque by the Prophet S.A.W. (Bello, Doragawa 2010) Though the
first waqf in Islamic history is created for religious purposes, it is important to note that the
objectives of waqf are not restricted to only religious purposes. Among the first waqfs created by
the companions of the Prophet S.A.W are the waqfs by Umar Al-KhattabR.A(d.644) and Uthman
bin Affan R.A.(d.656). Umar al-Khattab bought a land in Khaybar after being advised by the
Prophet S.A.W. He then made it as a sadaqahthat could not be sold or given as a gift to other
parties. In addition to that, the fruits of the cultivation process on the land should be distributed to
the poor. (Omer and Yahya 2010)
As Muslims if we have enough resources we should to empower as much people as
possible, because doing this is one of the best means of poverty eradication.

9. Desisting from usury and corruption as means of eradicating poverty
Nigeria still remains a rich country with poor people, just because the distribution of the
wealth is so disperse, and uneven, many people usurp government fund to take care of thier
private needs an act called corruption.
Corruption itself is a pathogen for poverty, it causes poverty in the first place since it
prevent wealth from circulating. And yet hinders the alleviation of poverty. Fund meant for the
alleviation programmes are being embezzled by the agencies. Therefore this is act a Muslim
must desist from.
Buraidah ibn Al-Husaib (may Allah be pleased with him) narrated that the Prophet (peace and
blessings be upon him) said:
"When we appoint someone to a (public) post and provide him with an allowance, anything
he takes beyond that is an ill-gotten gain.| (Abu Dawud and authenticated by Al-Albani).
Usury on the other hand is seen by the world as means of eradicating poverty, however it
will not eradicate poverty but rather add to it. It is forbidden by Allah, in many verses of the
holy Qur’an: Suratul- Baqarah (2:275-278), Suratul-Aalimran (3:130) and the three chapter after
it. It is the only crime Allah promised war to the offender.
CONCLUSION
From the foregoing, it can be deduces that the main causer organism of poverty and the
driving tool for poverty in our economy is corruption. Let us desist from it and all play our own
roles as Muslim in the eradication of poverty in Nigeria.

10. REFERENCES
1. Oriahi C.I. and Aitufe A .O., 2010. Education for the Eradication of Poverty: Current
Research Journal of Social Sciences 2(6): 306-310, 2010
2. Lorenzo, G. (2005). Impacts of Policies on Poverty: Agricultural Policy Support Service
for the Food and Agriculture Organization of the United Nations, FAO, Policy Assistance
Division, Rome, Italy.
3. Sen A., 1985. Commodities and capabilities, North-Holland, Amsterdam, The Netherlands.
4. Gordon, D. (2005). Indicators of Poverty & Hunger: Expert Group Meeting on Youth
Development Indicators, United Nations Headquarters, New York, 12th– 14th
December
2005.
5. World Bank (2001), Poverty Manual, Washington DC, USA (also available at:
http://web.worldbank.org/WBSITE/EXTERNAL/WBI/WBIPROGRAMS/PGLP/0,,content
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46,00.html
6. Olanipekun, Wahid Damoilola et al( 2015), the role of zakat as a poverty alleviation
strategy and a tool for sustainable development: insights from the perspectives of the holy
prophet (pbuh); Arabian Journal of Business and Management Review (OMAN
Chapter)Vol. 5, No.3; October. 2015
7. Sahih al-Bukhari 1480Vol. 2, Book 24, Hadith 558
8. Obaid Ahmed Reading: [Being Your Own Boss – Part 1] How to Develop an
Entrepreneurial Mindset 2015 http://productivemuslim.com/being-your-own-boss-part1/
9. AimatulYumna and Matthew Clarke. "Integrating Zakat and Islamic Charities with
Microeconomic Initiative in the Purpose of Poverty Alleviation in Indonesia."
International Conference on Islamic Economics and Finance. Qatar.,page.5
10. Bello, Doragawa Ahmad. "Poverty Alleviation Through Zakah and Waqf Institutions: A
Case for the Muslim Ummah in Ghana." Munich Personal RePec Archive Paper. Nigeria:
Ahmadu Bello University, June 10, 2010.,p.10
11. YahyaFidan, Omer Kayadibi Proceeding - Kuala Lumpur International Business,
Economics and Law Conference 4 (KLIBEL4) Vol. 1. 31 May – 1 June 2014. Hotel Putra,
Kuala Lumpur, Malaysia.