Utilization of Endowments (Awqaf) in Financing Community Development Programmes In Kano Metropolis

Abstract

Conventional sources for financing community development programmes appear to be inadequate in meeting people’s welfare needs. This inadequacy seems more pronounced given cuts in government spending. Even with reforms in community development finance, in the form of socially responsible investing, Muslim communities still face financial exclusion due to the interest-element in conventional finance instruments. This research examined the utilization of Islamic endowments (awqaf) in financing community development activities in Kano metropolis. Five research questions guided the study. The scope of the research was limited, in part, to exploring the nature, management and availability of awqaf in enhancing community well-being. An ex-post facto design was employed. Primary data were collected using structured interview and complemented with secondary data through documentary analysis. Data analysis involved the use of descriptive statistics and cluster analysis technique. The findings of the study include the disclosure that Islamic philanthropic endowments, especially for the provision of socio-economic facilities, are scarce in Kano metropolis. This contradicts the centuries-old tradition of the participation of Islamic charities in economic and social developmental services. From its findings, the study’s main conclusion was that awareness-creation campaigns and education, through collaborative endeavours, are essential in promoting the setting up of awqaf. Among its recommendations, the study suggested that a dynamic enlightenment drive is necessary to sensitize Muslims to appreciate the contemporary significance of endowments and utilize them as mechanisms for financing community welfare projects in Kano metropolis.