The Arthur Group Ramadan Programme recently featured an insightful discussion on the role of Zakat and Sadaqah in promoting sustainable wealth distribution and social justice, with Dr. Adnan Opeyemi Salaudeen, Associate Professor at the University of Bolton, sharing expert perspectives on the Islamic financial principles of charity and economic equity.
Speaking during the programme, Dr. Salaudeen explained that Zakat is one of the five pillars of Islam and serves as a structured mechanism for redistributing wealth within society. He noted that the term “Zakat” originates from an Arabic root meaning purification, growth, and blessing, emphasizing that the practice purifies wealth while fostering spiritual development among believers.
According to him, Zakat requires eligible Muslims to give 2.5 percent of their accumulated wealth annually to qualified beneficiaries, helping to address poverty and inequality within communities. The obligation is rooted in the Qur’an and the teachings of Prophet Muhammad (peace be upon him), which encourage believers to support the less privileged and strengthen social bonds.
Dr. Salaudeen explained that Zakat becomes obligatory for Muslims who meet specific conditions, including possessing wealth above the minimum threshold known as Nisab. This threshold is traditionally based on the value of 85 grams of gold or 612 grams of silver, and the wealth must remain above this level for one lunar year before Zakat becomes due.
He further outlined how Muslims can calculate their Zakat by identifying eligible assets such as cash, gold, business inventory, and investments, deducting outstanding liabilities, and applying the 2.5 percent Zakat rate to the remaining amount.
During the session, Dr. Salaudeen also highlighted the categories of people eligible to receive Zakat. These include the poor, the needy, Zakat administrators, individuals burdened by debt, travelers in distress, and others identified in Islamic teachings. The system, he said, ensures that wealth circulates within society and supports those most in need.
The discussion also explored the difference between Zakat and Sadaqah, two important forms of charity in Islam. While Zakat is a mandatory obligation for eligible Muslims, Sadaqah is voluntary and can be given at any time and in any amount. Sadaqah may also extend beyond financial assistance to include acts of kindness and community support.
Dr. Salaudeen emphasized that both Zakat and Sadaqah play critical roles in strengthening communities and addressing social challenges. When effectively managed, Zakat can serve as a powerful economic tool for poverty alleviation and wealth redistribution.
Citing global examples, he noted that organized Zakat systems in countries such as Malaysia and Indonesia have demonstrated measurable success in improving the welfare of beneficiaries and reducing income inequality. Globally, the potential value of Zakat contributions has been estimated at hundreds of billions of dollars annually, underscoring its significance in the Islamic economic framework.
The discussion also touched on the growing role of technology in modern Zakat management, including the use of digital platforms, mobile applications, and financial technology tools that improve transparency, efficiency, and accessibility in charitable giving.
Addressing the Nigerian context, Dr. Salaudeen noted that the country faces significant poverty challenges, with millions living in multidimensional poverty. However, he said effective Zakat systems could help address these challenges by mobilizing resources for social welfare and economic empowerment.
He encouraged greater awareness, institutional support, and collaboration among stakeholders to strengthen Zakat collection and distribution systems in Nigeria.
The Arthur Group Ramadan Programme continues to provide a platform for meaningful discussions on faith, finance, and social development, bringing together scholars and professionals to explore how Islamic principles can contribute to building more equitable and sustainable societies.
