The Impact of Islamic Philanthropic Mechanisms on Poverty Alleviation and Economic Resilience in the Wake of Fuel Subsidy Removal in Nigeria
DOI:
https://doi.org/10.58764/j.prwkl.2025.3.140Keywords:
economic suffering, fuel subsidy, Islamic charity, mitigating, Nigeria, vulnerableAbstract
This study examine the influence of Islamic philanthropic mechanisms, specifically Zakat and Waqf, on poverty reduction and economic resilience in Nigeria after fuel subsidies were removed. The elimination of fuel subsidies as part of fiscal reform measures has dramatically raised the cost of living and exacerbated socioeconomic vulnerabilities among low-income households. In this framework, Islamic social finance tools provide a faith-based, community-driven approach to social security and economic stability. The research critically investigates how Zakat (obligatory almsgiving) and Waqf (charitable endowment) work as redistributive and developmental instruments to alleviate economic distress and enhance household resilience. The study examines current developments in Islamic philanthropy in Nigeria using qualitative data from scholarly literature, policy papers, media stories, and institutional records, as well as its responsiveness to post-subsidy economic constraints. According to the findings, Islamic philanthropic institutions function as supplementary social safety nets by giving immediate relief, promoting income-generating activities, and fostering long-term communal growth. However, difficulties like as institutional coordination, transparency, and scalability restrict their usefulness. The study suggests that enhancing governance frameworks and incorporating Islamic charity into broader socioeconomic policies could increase its effectiveness in promoting poverty reduction and economic resilience in modern Nigeria.
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Copyright (c) 2025 Usman Jibril Mikail, Adamu Abubakar Muhammad, Bala Babangida, Abdulkareem Ahmad Tijjani, Maryam Adam
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