Zakat: A Living Tool for Human Capital and Economic Development

Abstract

Islam offers its own social, political, and economic approaches that, if applied, will contribute positively to poverty reduction and income inequality, and thus results in improved human capital and economic development. zakat means worshiping Allah by giving that which He has enjoined of various sorts of zakat to those that are entitled to them, consistent with the rules approved in Sharia. This study examines the socio-economic impact of zakat on human capital and economic development. Data for the study was primary data drawn from Fagge, Nassarawa, Tarauni, and Kumbotso Local Government Areas, Kano, Nigeria. The collection of data was through interviews with one four hundred respondents using random sampling techniques. In the end, three hundred and eighty-eight respondents were reached. It, therefore, serves as 100% of the interview. The data were analyzed using simple percentage analysis. The findings of the study show that improved payment and appropriate distribution of zakat in Kano, Nigeria shall promote human capital development. Thus, the paper concludes that zakat has a direct effect on human capital and economic development. The study, therefore, recommends integrating zakat into the overall development strategy and strengthen zakat institutions.