When generosity is not enough, By Isiaq Ajibola

In Nigeria’s elite circles, it is common to meet accomplished Muslims who live carefully structured lives. They plan their finances, children’s education, retirement, household expenses, and pilgrimage months ahead. They save deliberately, invest in various enterprises, and diversify their earnings over time. They also give generously; to family members, people back home, mosque projects, the payment of third-party school fees, medical bills, and emergency needs.

Yet, among this same group, the obligation of giving Zakat,one of the fundamental pillars of Islam remains persistently misunderstood and often unmet.

My interest in this matter did not arise from abstraction or moral inquisition. It grew from my direct involvement as a council member of the NASFAT Agency for Zakat and Sadaqat (NAZAS), an organisation that has collected and distributed close to ₦1 billion through structured Zakat and Sadaqat administration in Nigeria since 2014.

In my interactions with the elites who made this possible, a sobering reality has emerged—confusion about eligibility, uncertainty over who should pay Zakat, and ignorance of how to calculate. In a country with a sizeable Muslim population of middle and upper class comprising accomplished individuals, the pool of compliant contributors remains remarkably thin.

In Nigeria, where about 56 per cent of the population is identified as Muslim (Pew Research Center), Zakat collection remains modest. For example, in 2024, the five leading Zakat agencies in Nigeria disbursed roughly ₦736 million to just over 4,200 beneficiaries—a modest figure when placed against the size and potential of the Muslim population.
Globally, the picture is similar. Studies indicate that while 85 per cent – 95 per cent of Muslims fast during Ramadan and 70%–85% observe daily prayers, only 20 per cent – 40 per cent of eligible Muslims actually pay Zakat. By any objective measure, it is the least observed of Islam’s five pillars.

Part of this weak performance is a deeper problem of a knowledge gap among eligible (Zakatable) Muslims. As earlier noted, Nigerian Muslims are instinctively generous. However sincere, the intention may be, that is not a substitute for the obligation of Zakat. This is when generosity is not enough. Confusing them undermines the deliberate injunction of Allah that places Zakat as the third pillar of Islam, alongside faith (Iman), prayer (Salat), fasting during Ramadan, and pilgrimage (Hajj).

More importantly, the purpose of Zakat goes far beyond charity. It is a moral, social, and economic system designed to purify wealth, uplift society, and strengthen faith.

The obligation of Zakat requires the payment of a fixed rate of 2.5 per cent of one’s net wealth once it reaches the threshold of nisab and has been held for one lunar year.

Using the gold benchmark prescribed by the Prophet Muhammad (SAW), the nisab is measured at 87.5 grams of gold, which today is approximately ₦19.1 million, using the current exchange rate. This means that anyone whose combined eligible assets, held for a lunar year, meet or exceed this figure is obligated to pay Zakat.

The calculation itself must be properly understood. It is not about having this amount sitting idle in a single bank account. Rather, it involves adding up one’s working assets and subtracting immediate liabilities.

It is therefore imperative to understand the calculation.

Firstly, identify what counts as zakatable wealth

Zakatable wealth includes what you own today that represents stored or growing value.
These typically fall into the following categories:
(i) Cash and Cash Equivalents
Cash at home; money in bank accounts; mobile wallets; digital balances; and foreign currencies (converted to naira).
(ii) Business Assets
Goods or stock meant for sale; money owed to you that is likely to be paid (trade receivables).
This does not include fixed assets such as buildings, machinery, or office furniture.
(iii) Gold and Silver
Gold or silver held as savings or investment. Many women hold jewellery partly for this purpose. While scholarly opinions differ on jewellery kept purely for personal adornment, many choose to include it to be safe. Zakat applies to its current market value.
(iv) Shares and Investments

This is where most modern confusion arises.

Shares represent ownership in companies, whether listed on the Nigerian Exchange or held abroad. Investments include equities, mutual funds, Sukuk, bonds, treasury bills, cooperative schemes, and even digital assets such as cryptocurrencies.

Secondly, deduct immediate liabilities you are owing. Deduct short-term obligations like rent due, utility bills, school fees due, salaries due, supplier payments, and loan instalments currently due. (Long-term debts not immediately payable are generally not deducted).

Thirdly, apply the rate of 2.5 per cent to the resulting net amount (or simply divide by 40). This is the same rate applied during the time of the Prophet (SAW).

Once the net amount reaches the nisab (₦19.1 million), then you must Zakat.

Among Muslim elites the question is rarely poverty. It is the way we handle it with levity.

Many assume they are below nisab because they glance at a bank balance and stop there. But Zakat is assessed on accumulated wealth; cash savings, shares, business capital, receivables, retained profits etc. The nisab today of roughly ₦19.1 million sounds imposing until one begins to aggregate properly. ₦8 million in savings, ₦5 million in investments, ₦4 million tied up in business asset, ₦3 million in receivables and one has quietly crossed the threshold.

What disguises eligibility is fragmentation. Wealth sitting in different compartments and not assembled in one place feels smaller than it is.

For many reaching nisab is not extraordinary. The challenge is not capacity but the discipline to calculate what is held personally or within a business.

Zakat is orderly, predictable, and capable of quietly redistributing opportunity in a society where too much wealth often circulates within too few.

Perhaps the time has come for Muslim elites to apply the same rigour to Zakat that they apply to other pillars of Islam.

May Allah grant us clarity, sincerity, and the courage to fulfil this obligation properly. May He accept our obedience and purify our wealth. Ameen.