ANALYSIS OF THE ROLE OF ZAKAT (ALMS TAX) IN CUSHIONING THE EFFECT OF INFLATION ON HOUSEHOLDS IN MAIDUGURI, BORNO STATE

Abstract

With the rising trajectory of inflation across the globe which Nigeria and
Borno state is not an exception. This has attracted the attention of relevant
stakeholders in order to finds ways of how to bring it under control and
cushion its effects especially on households. It is against this backdrop that
this paper seeks to analyze the role of Zakat (alms tax) in cushioning the effect
of inflation on households in Maiduguri, Borno state. To document this study,
Content analysis research technique was employed based secondary data
obtained. Deductive analytical method was further employed to draw
inferences. The study revealed that the effect of inflation on households
include reduction in consumption, value of money, savings, standard of living,
employment, poverty among others and Zakat fits into the peculiarities of the
identified effects. More so, Further findings revealed that the Borno Zakat
potentials stood at a minimum of USD267K and a maximum of and USD640K
and out of the 88.9 percent poor household, each will be entitled to a minimum
of USD3,312 and a maximum of USD7,934 in form of Zakat. The study
concluded that the deployment of Zakat will go a long way in hedging against
the effect of inflation in Maiduguri, Borno state. The study recommends that
a Zakat Commission which is duly backed by legislations should be set-up.
And the welfare of its staff and their condition of service should be given
adequate priority.