- Says foreign investors have shown interest
The Sultan of Sokoto, Alhaji Sa’ad Abubakar, has explained why the Sultanate Council is working to establish the Caliphate Islamic Microfinance Bank, saying the initiative is aimed at combating poverty, creating jobs and promoting sustainable livelihoods across Nigeria and the West African sub-region.
The Sultan disclosed this on Sunday in Sokoto during the opening of a three-day training and capacity-building programme for stakeholders on Baitul Mal wat Tamweel (BMT).
The programme was organised by the Islamic Development Bank (IsDB) in collaboration with the Sokoto State Zakat and Endowment Agency.
Represented by the District Head of Kilgore, Alhaji Jabbi Kilgore, the Sultan said the proposed Islamic Microfinance Bank would provide small-scale entrepreneurs with access to Islamic finance to expand their businesses, create employment and improve their livelihoods.
He said the initiative has reached an advanced stage, with investors, including those from outside Nigeria, expressing interest in partnering with the project.
“The aim is to establish a bank that will serve as a model not only for Nigeria but also for the West African sub-region,” he said.
The Sultan described the IsDB’s collaboration with the Sokoto State Zakat and Endowment Agency as a significant step towards poverty reduction through effective Zakat collection, sustainable administration and the productive use of charitable resources.
He urged participants and resource persons to ensure that the training translated into practical measures to improve the welfare of vulnerable people and strengthen poverty alleviation efforts.
Speaking at the event, the Chairman of the Sokoto State Zakat and Endowment Agency, Malam Lawal Maidoki, called for a shift from excessive dependence on Zakat and other charitable assistance to productive activities that would enable beneficiaries to become self-reliant.
Maidoki said the BMT model combined social welfare with economic development by providing immediate assistance to vulnerable people while helping them access resources and build capabilities for sustainable livelihoods.
He noted that although Zakat and other charitable contributions provided essential relief to disadvantaged households, such interventions needed to be complemented by opportunities for beneficiaries to establish businesses, generate income, and gradually escape poverty.
“In many communities, Zakat and other charitable resources provide essential relief, but relief alone may not create a clear, supported pathway from vulnerability to sustainable livelihoods.
“At the same time, conventional microfinance may be inaccessible or unsuitable for people who cannot meet its conditions or who seek financing consistent with Islamic principles,” he said.
Maidoki explained that BMT mobilised and distributed social funds, including Zakat, Sadaqah and Waqf, to eligible beneficiaries while supporting productive activities through Shariah-compliant financial services and business development assistance.
He said the approach could strengthen poverty reduction efforts by linking social protection with economic empowerment and creating opportunities for vulnerable households to become financially independent.
Earlier, one of the resource persons, Saat Suharto, an Indonesian social activist and expert in Islamic economics and finance, said the programme was designed to strengthen stakeholders’ capacity to apply BMT principles in an inclusive, accountable and locally appropriate manner.
Suharto said the initiative would support the poorest and most vulnerable people in developing sustainable livelihoods and, over time, becoming financially capable of contributing Zakat themselves.
He added that the programme highlighted the need to strengthen Zakat and Waqf administration, improve staff capacity, simplify procedures and deploy technology to enhance transparency, accountability and operational efficiency.
-NAN