Managing social inequality risk in Lagos State: The role of Zakat NGOs

Tajudeen Olalekan Yusuf; Saheed Abdullahi Busari; Abdulfatai Ismail Olohunfunmi; Habeebah Simisola Fa-Yusuf

doi:10.33102/jmifr.v18i1.479

Authors

Tajudeen Olalekan Yusuf Department of Actuarial Science and Insurance, Faculty of Management Sciences University of Lagos University Road Lagos Mainland Akoka, Yaba, Lagos, Nigeria
Saheed Abdullahi Busari Department of Fiqh & Usul al-Fiqh, Kulliyyah of Islamic Revealed Knowledge and Human Sciences , International Islamic University Malaysia 53100 Jalan Gombak, Selangor , Malaysia
Abdulfatai Ismail Olohunfunmi Institute of Islamic Finance Professionals Plot 105, Kunle Akinosi Street Apapa Expressway, Oshodi Lagos State, Nigeria
Habeebah Simisola Fa-Yusuf Department of Finance Faculty of Management Sciences University of Lagos University Road Lagos Mainland Akoka, Yaba, Lagos, Nigeria

DOI:

https://doi.org/10.33102/jmifr.v18i1.479

Keywords:

Social inequality risk, role of government, Zakat NGOs, poverty alleviation

Abstract

Several socio-economic policies initiated by various governments in Nigeria have failed to curb the evil effects of social equality risks (SIR). Lagos State being the country's commercial capital city, is worse hit by virtue of its huge population. Zakat, the third pillar of Islam, is ordained to bridge this gap that SIR creates by redistributing income among the citizenry. This study is intended to explore how zakat institutions have been effective in complementing Government's initiatives at combating social inequality risks in Lagos-Nigeria. The study utilized data gathered from 500 middle-class respondents randomly selected in Lagos's middle-class location via an online survey channel by identifying five SIR dimensions. The data were analyzed using Statistical Package for Social Sciences (SPSS) version 25, while descriptive and Multiple Regression analysis were used as tools for the data analysis. Findings suggest that SIR is still endemic in the study area which mirrored the near ineffectiveness of zakat institutions. In addition, the available zakat institutions were found to be ineffective and overwhelmed to meet the demands of their patrons. Also, zakat institutions were found to be beset by inaccessibility and dwindling resources. It is suggested that the Government utilize the zakat institutions to reach the grassroots for a more significant impact on reducing the SIR incidences.

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