Zakat is an Islamic finance term referring to the obligation that an individual has to donate a certain proportion of wealth each year to charitable causes. Zakat is a mandatory process for Muslims and is one of the Five Pillars of Islam, the others being a declaration of faith, prayer, fasting during Ramadan, and the Hajj pilgrimage. It is a compulsory procedure for Muslims to earn above a certain threshold. Giving away money to the poor is said to purify yearly earnings that are over and above what is required to provide for the essential needs of a person or family.

 

Allah Said in the Qur’an;

 

 

 

“Indeed, [prescribed] charitable offerings are only [to be given] to the poor and the indigent, and to those who work on [administering] it, and to those whose hearts are to be reconciled, and to [free] those in bondage, and to the debt-ridden, and for the cause of God, and to the wayfarer. [This is] an obligation from God. And God is all-knowing, all-wise.”

– Al-Tawbah, 9:6

The recipients of Zakat are those eligible to collect Zakat revealed in the Holy Qur’an. Allah said in the Qur’an:

Indeed, [prescribed] charitable offerings are only [to be given] to the poor and the indigent, and to those who work on [administering] it, and to those whose hearts are to be reconciled, and to [free] those in bondage, and to the debt-ridden, and for the cause of God, and to the wayfarer. [This is] an obligation from God. And God is all-knowing, all-wise.” – Al-Tawbah, 9:60

 

The recipient of Zakat is revealed in the verse above:

  1. The poor (al-fuqarâ’), meaning low-income or indigent.
  2. The needy (al-masâkîn), meaning someone who is in difficulty.
  3. Zakat administrators.
  4. Those whose hearts are to be reconciled, meaning new Muslims and friends of the Muslim community.
  5. Those in bondage (slaves and captives).
  6. The debt-ridden.
  7. In the cause of God.
  8. The wayfarer, meaning those who are stranded or travelling with few resources.

Muslims past the age of puberty and are of sound mind are eligible to pay Zakat as long as they meet the required Nisab threshold. In order to be eligible to pay Zakat, your level of excess wealth must remain higher than the Nisab value for a full year. This is when your Zakat payment will be due.

THE NISAB

Nisab is a term that often appears alongside zakat. It is a threshold, referring to the minimum amount of wealth and possessions that a Muslim must own before being obligated to pay zakat. In other words, if personal wealth is below the nisab during one lunar year, no zakat is owed for that period.

  • 87.48g of gold, 612.36g silver

The nisab can be based on either the gold or silver amount. This is usually the equivalent value in your local currency. Most scholars favor the lower value (silver at present) as it means that more people can pay Zakat and therefore more people can benefit. Whichever one a person decides to follow; silver or gold, the Zakat will be 2.5% of additional grams above the nisab

The paper currency must be equivalent to either the silver nisab or the gold nisab whichever one the person’s country bases their Zakat on. For Nigeria, the Zakat is based on the gold nisab; 48g which is equivalent to ₦2,000,000. Zakat is 2.5% of the amount owned above the nisab.

Zakat on camels should be paid in kind according to a detailed schedule below.

1. CAMELS:

NISAB ZAKAT
1-4 0
5-9 1 Goat or sheep (1 year old)
10-14 2 Goat or sheep (1 year old)
15-19 3 Goat or sheep (1 year old)
20-24 4 Goat or sheep (1 year old)
25-35 1 One-year-old she-camel
36-45 1 Two-year-old she-camel
46-60 1 Three-year-old she-camel
61-75 1 Four-year-old she-camel
76-90 2 Two-year-old she-camel
91-120 2 Three-year-old she-camel
121-129 3 three-year-old she-camels
130-139 2 Two-year-old she-camel + Three-year-old she-camel
140-149 1 Two-year-old she-camel + 2 Three-year-old she-camel
150-159 3 Three-year-old she-camel
160-169 4 Two-year-old she-camel
170-179 1 Three-year-old she-camel +3 Two-year-old she-camel
180-189 2 Three-year-old she-camel +2 Two-year-old she-camel
190-199 3 Three-year-old she-camel +1 Two-year-old she-camel
200-209 4 Three-year-old she-camel or 5 Two-year-old she-camel

 

Zakat on cows should be paid in kind according to a detailed schedule below.

2. COWS:

NISAB ZAKAT
1-29 0
30-39 1- One-year-old Bull-Calf (Male)
40-59 1- Two-year-old Cow-Calf (Female)
60-69 2- One-year-old calf (Male or Female)
70-79 1- Two-year-old Cow-Calf (Female) + 1- One-year-old Bull-Calf (Male)
80-89 2- Two-year-old Cow-Calf (Female)
90-99 3- One-year-old Cow-Calf (Female)
100-109 1- Two-year-old Cow-Calf (Female) + 2- One-year-old Bull-Calf (Male)
110-119 2- Two-year-old Cow-Calf (Female) + 2- One-year-old Bull-Calf (Male)
120-129 3- Two-year-old Cow-Calf (Female) or 4- One-year-old Bull-Calf (Male)

Zakat on sheep and goats should be paid in kind according to a detailed schedule below.

There is no zakat on sheep and goats until their number reaches forty. [Neither male nor female is specified.

NISAB ZAKAT
1-39 0
40-120 1- Goat or sheep (not less than 1 year old)
121-200 2- Goat or sheep (not less than 1 year old)
201-299 3- Goat or sheep (not less than 1 year old)
300-399 4- Goat or sheep (not less than 1 year old)
400-499 5- Goat or sheep (not less than 1 year old)

Fulfill the third pillar of Islam

 

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Donation Total: ₦ 50,000.00