Determinants of sustainability of waqf institutions for poverty alleviation : a case study of Zamfara State, Nigeria

Abstract

Notwithstanding Nigeria’s abundant human and material resources, the majority of its population, particularly Muslims from both the northern and southern parts apparently live in abject poverty. This is rather ironical given the distributive justice philosophy of Islam achievable through numerous prescribed mechanisms such as Waqf. The study therefore investigates the antecedent factors that promote the sustainability of Waqf in Zamfara State, Nigeria being the first state to embrace shari’ah and institutionalize Waqf in 1999. The present study based on the ethical and legitimacy theories investigates the interrelationships among ethics, investment, efficiency, accountability, transparency and beneficiary participation factors and what influence these variables directly have both in aggregation and isolation or indirectly via the mediation of governance on the sustainability of Waqf institution in Zamfara State, Nigeria. Based on a self-developed questionnaire survey and interview protocols, data were elicited from 370 officials of Waqf institution while qualitative data were obtained from five stakeholders as well as documents from Zamfara State, Nigeria. Data were subjected to both quantitative-based analyses using multiple regression and qualitative analyses based on transcript interpretation. The results show that there were strong indirect relationships between accountability, transparency and beneficiary participation via governance on the sustainability of Waqf institution in Zamfara state, Nigeria. However, a partial mediating effect was noted for beneficiary participation which recorded the strongest direct and indirect relationships compared to the other two variables (accountability and transparency) on sustainability of Waqf institution in Zamfara State of Nigeria. Further results show that direct relationships between accountability and transparency on sustainability seemed statistically and practically stronger compared to the relationship with governance. However, ethics showed no effect either through direct or indirect pathways. The findings of qualitative analyses support investment and accountability towards poverty alleviation. It is therefore, suggested that ethics especially, should be practically taken with intense interest in order to forestall the potential long run effects on the sustainability of the institution. Similarly, effective governance of the Waqf institution on efficiency and transparency should be encouraged. Also, it is hoped that the findings would help policy makers in Waqf institutions and the Nigerian government to reformulate their policies and strategies towards poverty alleviation programmes.