Implication of Zakat Application in Nigeria

Abstract

The impact of Zakat application in Nigeria has become a growing concern in recent studies due to its impact and implication on building human capital developmental capacity. This capacity building is the bedrock of entrepreneurial development, which encourages both public and private sector partnerships. The Koran, termed as a “holy book,” instructs the contribution of zakat, the amount required, and those who qualify as beneficiaries. As a principle in Islamic culture, its application is not limited to global impact with the encouragement of a legal framework and institutionalization. The aim of this research is to identify the hurdles limiting the efficient application of Zakat in Nigeria despite legalizing sharia law. The methodology used is regression analysis to analyze the collected data. Specifically, multiple regression analysis will be conducted to examine the relationship between the independent variables and dependent variables. In conclusion, this research does empirically prove the positive impact of Zakat on entrepreneurial development and desires to improve on the process of implementation. These findings have significant implications for the management and administration of Zakat funds, suggesting that they are aligned with the intended goals and expectations of the stakeholders involved. Our research provides valuable insights into the effectiveness of Zakat-related initiatives and can inform future policies and strategies aimed at optimizing the impact of Zakat in supporting those in need and fostering human capacity building, economic development, and social welfare.