key: cord-0058074-llecxd3f
authors: Zakariyah, Yushau; Zakariyah, Habeebullah; Nor, Azman Mohd
title: Waqf Potentials as a Relief Tool During Covid-19 Lockdown in Lagos, Nigeria
date: 2021-02-01
journal: The Importance of New Technologies and Entrepreneurship in Business Development: In The Context of Economic Diversity in Developing Countries
DOI: 10.1007/978-3-030-69221-6_134
sha: 5671d73e92ee523dc58efba640c950cd2b3b0dcb
doc_id: 58074
cord_uid: llecxd3f

The foundational principle of Islam is Rahman and the beloved Prophet of Islam (peace be upon him) has been sent as rahmatan Lil Alamin, mercy to all mankind. It is upon this principle that Islam incorporates different programs that will make life comfortable for all mankind. These kinds of programs include Sadaqah, Zakat, and by extension Waqf. The latter has been used in many countries such as Malaysia, Turkey, Kuwait, etc. as a way of alleviating poverty, bridging the socio-economic gap, and empower masses especially the vulnerable. As the whole world was unexpectedly sparked by the novel pandemic, COVID 19, every country has been on toe not only to protect her habitants and city but also to render assistance on the basic needs. Some countries like Nigeria have been overwhelmed in successfully carrying out this task. They become “lone wolf” in this situation. This paper assesses how the pandemic affects the livelihood of people in Lagos state in Nigeria and the reliefs provided by the government to help the situation. It is thus revealed that Lagos State has the highest number of coronavirus cases with more than ten thousand cases. The pandemic affected the source of income of people and everyone finds it difficult to meet ends meet. The government has supported people through cash transfer and food distribution. However, it is found that the government alone was on the ‘battlefield’ making the matter complicated and the relief provided insubstantial. It is on this base that this study recommends creation of Waqf institution to provide complementary role in such situation and beyond.

One of the main objectives of waqf according to Islam is to alleviate and lessen the rate of poverty in any society, and provide the basic needs of poor Muslims in order to enable them to be financially independent. In Islam, all charitable activities are considered devotional actions that will be rewarded by Almighty Allah provided they conform to Islamic principles. There are many attempts among classical and contemporary scholar to define the concept of Waqf, based on the previous studies we can conclude that waqf is as the taking some of individual property "mal" and the dedicate its usufruct for benefit This coronal virus has led to recession in Nigeria, though; this is not new in the country. During the 2016 recession, "the monetary authority in Nigeria defended the local currency from forced devaluation against the dollar and adopted a managed float foreign exchange system, which worked well from 2016 to 2019. In the aftermath of the 2016 recession in Nigeria, it was almost widely believed that unexpected and sustained decline in oil price was the most important cause of recessions in Nigeria".

However, in this present situation, the public health crisis triggers the economic crisis in the country. As of the current year 2020, the economic instability and crises is somehow unique in nature, as diverse from other economic challenges and crises. All fear of contacting the Covid-19 disease. Based on this, this article looks at how Waqf can be used as a Relief Tool during Covid-19 Lockdown in the most affected state in the country, Lagos State, Nigeria.

Covid-19 cases are worldwide, and Nigeria is one of those countries affected by the virus. It Nigeria confirmed the 1st case of the virus on February 27, 2020, when it reported by many Nigerian agencies that an Italian citizen was confirmed positive. The Italian landed at Lagos airport on 25th February after that it was reported that he traveled to Ogun state from Lagos state, western Nigeria. Then, he was then referred to IDH Lagos where COVID-19 test was conducted and confirmed on him. "Upon identifying the index case, National Emergency Operations Centres were immediately activated to trace his contacts. By March 9, 2020, 27 suspected cases had been identified across five states (Edo, Lagos, Ogun, Federal Capital Territory, and Kano), of which two were confirmed to be positive (ie, the index case and a contact), with no deaths". (Nigeria Centre for Disease Control. COVID-19 outbreak in Nigeria: situation report). The first death of covid-19 was reported from Abuja in March 23 when 67 years old Suleiman Achimugu has capitulated to the disease he had returned from the United Kingdom "(https://peoplesdispatch.org/ 2020/04/01/3-nigerian-states-are-on-lockdown-amid-suspicions-of-under-testing/)".

To curtail the spread of the virus, the Nigeria Government announced 14 days' lockdown enforced in the commercial Hub Lagos, neighboring Ogun, and the nation's capital Abuja. The government then exempted those who are working in health sectors or those who proving medical aids and essential services to the people during pandemic. "[a]ll citizens in these areas are to stay in indoors. Travel to or from other States should be postponed," and also "All businesses and offices within these locations should be fully closed during this period," except for hospitals, pharmacies and grocery stores (covid-19 situation report Sunday, 28th June 2020).

According NCDC report on 30 July 2020 the total confirmed cases in Nigeria rise to 24,567 (490) places that are affected including FCT 36 (0) cases discharged 9,007 (382) fatalities confirmed 565 (7) -2.3% cfr demographics male -16,322 (66%) female -8,245 (34%) most affected age group 31-40 (24%) ( Table 1) . From the above table, it shows that the Lagos state was most affected by covid-19. The city is considered the major contributor to the Nigerian economy. It contributes 30% of Nigeria's GDP. Lagos is home to 10% of the nation's population. The majority of Nigeria's manufacturing is located in Lagos as well as other services industries and finance.

According to ILO, more than 80% of Nigerians work in the informal sector "includes a wide range of occupations, from street traders, taxi drivers, tradesmen, and artisans to food vendors and hairdressers. Informal workers have lower-incomes, often do not have savings, health insurance, or pensions that provide a basic social safety net, and 72% of them are poor". (ILO 2018) .

The impact of the informal economy cannot be underestimated in Lagos state. The sector employs almost a 5.5 million people-about three-quarters of the state's labor force. "A study released in 2016 revealed that the informal sector made 41% 3 of contributions to Nigeria's national GDP; a few years later, in 2018, this portion had risen to 65%". "https://www.theafricareport.com/28694/coronavirus-effects-of-covid-19-onnigerias-informal-economy/". However, the enforcement of lockdown in Nigeria affected many Nigerians working in the informal sector. It prevents them from going to work or doing their daily activities. Many entrepreneurs have voices out and showed their fear that with the current situation the will not able to feed their house hold and entire families in so far the lockdown is practicing, because most of them are based on their daily earning. The pandemic leads to an increase in the price of essential commodities. The government itself acknowledges this fact while announcing the lockdown, the president Mohammad Buhari said the government would put the measure in place to; "preserve the livelihoods of workers and business owners to ensure their families get through this very difficult time in dignity." And stated that "the most vulnerable in our society would receive conditional cash transfers for the next two months".

In other hand, The Humanitarian Affairs Ministry started that "paying 20,000 Naira (US$ 52) On April 1, to families who registered with the National Social Register of Poor and Vulnerable Households set up by the Buhari administration in 2016 to combat poverty. The government said that each family on the register will receive a monthly cash payment for the four months". "(https://www.hrw.org/news/2020/04/14/nigeria-protectmost-vulnerable-covid-19-response)".

The federal government has identified 3.6 million households (11 Million people) who are eligible to receive assistance. However, given the account of 90 million people living in absolute poverty in Nigeria, it is clear that many vulnerable probably would not benefit "(https://www.theigc.org/blog/when-a-failure-to-diversify-meets-covid-19implications-for-nigeria/)".

The Central Bank of Nigeria (CBN) also provides "N50 billion to firms affected by the virus and is increasing credit to the health sector. Besides, the Bankers Committee pledged to provide N3.5 trillion in support to pharmaceutical companies, assist essential health companies in purchasing raw materials, and encouraging local production of drugs. Whilst these stimulants are necessary to spur economic growth, structural policy changes are required to achieve macro-economic stability and long-term sustainable growth". "(https://nairametrics.com/2020/05/17/from-pandemicto-poverty-nigerias-future-with-covid-19/)".

In continuance the government support, Nigerian government introduces On April 8, a relief 77,000 of metric of food which is meant to be distributed to those are affected by covid-19 pandemic in particularly in various places in Lagos state, Ogun state and Abuja. Meanwhile Lagos state's government also announced on March 27 that "it would provide food packages to 200,000 households during the lockdown". https://peoplesdispatch.org/ 2020/04/01/3-nigerian-states-are-on-lockdown-amid-suspicions-of-under-testing/).

Given the impact of the pandemic on the economy and development, government alone cannot solve the problem. There is a need of looking into another instrument to implement as a recovery strategy to stimulate people's demand. Waqf institution has been identified as a tool for social relief. It is also used for socio-economic development. This includes cash transfer to the poor, establishment of investment programs or projects, the establishment of health care, provision of social assistance to the elderly and handicap, development of agricultural programs, provision of a loan to the needy, religious program-building of mosques and school, road construction, digging wells and boreholes and host of others.

Waqf is derived from an Arabic term from "wa qa fa". And to understand what Waqf stands for, it is very necessary to emptily know the meaning of waqf and its objectives. The term "Waqf' is derived from injunctions in the Qur'an and Hadith of the prophet; which enjoin Muslims to spend on worthy programs and projects". (Mohsin 2013a, b; Nasir 2003) . In a study done by (Cizakca 1997; Mohsen 2008; Nasar et al. 2020 ; Al-Afifi 2019; Hassan and Ashraf 2010; Alsuwaigh et al. 2020) . Wafr "literarily means causing something to come to a halt or a stand-still, but technically it means a legal appropriation of privately-owned assets or physical property (Mawquf) by the original owner (Waqif) and dedication of such physical property to charitable purposes which improve the wellness of poor members of the society". Raimi et al. (2014a, b) defined Waqf as "the dedication of valuable assets as an enduring foundation to provide free welfare relief services to the vulnerable members of the society in fulfillment of a religious obligation". We can also conclude that waqf is considered as a "religious endowment, a property giving revenue, as regulated by Islamic law" (Saduman and Aysun 2009: 272) . Also, "Waqf is understood as an endowment set aside by the affluent Muslim to provide free relief services and solace to the vulnerable members of the society". (Ahmed 2007; Zaim 2012) . "The assets dedicated as Waqf could be monetized as leasing facility to earn streams of income, but cannot be sold. It is thus a poverty-reduction mechanism with root from Islamic jurisprudence, created to expand health services, education, social investment, and infrastructural development for improving the social wellbeing of the people and society" (Raimi et al. 2010; Zaim 2012) .

Several studies have been carried out on waqf in Nigeria. According to Muhammad (2010) in his study explored "the intellectual and religious communities on the role of Islamic endowments as viable mechanisms alleviating poverty and boosting public welfare activities". He concluded that poor awareness can be considered as one of the major barriers an effective utilization of Waqf for socio-economic purpose in Kano state of Nigeria.

Similarly, Waqf according to Dogarawa (2010) is "a fiscal instrument for providing Islamic institutions with material infrastructure and streams of revenue for supporting social welfare programs and projects at family, community, and state levels in Nigeria. In another direction" whereas Amuda in his study (2013) "advocated Waqf, Zakat, and other charitable funds as alternative funding options because several Nigerian Muslims contend with abject poverty, that is, they live on less than two dollars a day traceable to insufficient and unsustainable means of income". Furthermore, Dogarawa (2010) "underscored the institution of Waqf as an effective instrument in Islam for combating the challenge of endemic poverty to promote social balance and welfare enhancement in society".

The significance of Waqf is illustrated as a ceaseless charity, in the hadith reported by Abu Huraira,. (May Allah be pleased with him) said that Prophet Muhammad (peace be upon him) said, "When a man dies, his deeds come to an end except for three things: Sadaqah Jariyah (ceaseless charity); a beneficial knowledge, or a virtuous descendant who prays for him" (Nasir 2003).

Based on the above mentioned narration and other literature, we can see that the waqf institution plays significant role in enhancing the wellbeing of people. And it also beneficial not for the people "poor" but for the donor after death. (Mohsin 2013a, b; Raimi et al. 2014a, b) . Similarly, many researchers such as Un-Habitat (2005) admitted the importance of Waqf, because "historically, it has been a potent tool for welfare enhancement, funding channel for civil society NGOs for prosecuting their welfare agenda, wealth distribution tool, and template for improving the status of women in povertyridden societies. Also, Hoexter et al." (2002) noted that Waqf has been "positioned as an effective mechanism for bridging the urban gap between the rich and the poor in Muslim countries where several public institutions owe their origin to the Waqf system of the classical era. The importance of Waqf is linked to the delivery of public goods, which are non-excludable, non-rival, and without prejudice to the directives of the dedicator or Waqif" (Kuran 2001) .

It is imperative to know that, Waqf unlike zakat, is not compulsory upon donors rather it is an act of worship which is recommended by the lawgiver, Mohsin (2008) in his study drawn some basic conditions that must be fulfilled by the waqif (dedicators). "Firstly, legal ownership of the physical asset/property (Mawquf) that is endowed must be ascertained, as individuals cannot give out what does not belong to them. When such is done, it is null and void. Secondly, Waqf is valid only when the intention (Niyyah) of the dedicator is clear and unambiguous. Thirdly, the Waqf contract is based on the Islamic principle of the proposal (Ijab) and an acceptance (Qaboul). The dedicators propose and the foundation in charge of its management (Mawquf 'alaih) makes the acceptance. The maturity (Bulugh) and sound intellect (Aql) conditions are critical to the validity of the Waqf contract. A property owner must be mature and has the right frame of mind when giving out the property for endowment Waqf contract is not for a definite period; it is an irrevocable renunciation of ownership".

However, waqf in a theoretical and practical sense, can be categorized according to Raimi et al. (2013) into two major types namely: "Waqf al-Ahli and Waqf al-Khayri". The first type of waqf is a donation which related to "Ahl" means family of the donor. Whereas the second one is "Waqf al-Khayri", a donation set aside for the general well-being of the people.

Beside using Waqf to promote the welfare of the less-privileged, proceeds from it are also used as seeds capital for SMEs business, especially for the poor people. (Cizakca 2004) . Moreover, waqf also can be utilized for Qard hasan to support Islamic micro finance sectors for empowering business (Elgari 2004; Kahf 2004; Ahmed 2007) . Amuda and Embi (2013) suggested that there is a need "for impactful collaboration among OIC nations to refocus Waqf properties, Sadaqat proceeds, and public funding as fiscal instruments for poverty alleviation for Muslims suffering from abject poverty, unemployment, and destitution across the Muslim nations".

In a similar vein, Waqf can be in form of money donation, or any other immovable assets such as houses etc. The donation can also be in form of a "leasing facility to earn sustainable income but cannot be sold". However, agricultural produce and crops harvested from a field held as Waqf could be sold and the proceeds distributed as a charity, while the field itself is held intact as the original investment (Raimi et al. 2010) . Imam Shafi'i and Imam Malik viewed Waqf "as the extinction of the appropriator's ownership in a property/asset dedicated and the detention of the property/asset in the ownership of Allah, in such a manner that its profits should be made use of for good of mankind from beginning to the end" (Raimi et al. 2010: 132) . The jurists' viewpoint above presupposed that once assets are dedicated as Waqf, the contract is irrevocable and the utilization of the assets would be strict as proposed by the dedicators (Rassool 2007) .

According to (Amiru F. O. 20 July 2016) and his co-writers focused on cash waqf in Malaysia as a case study. They described cash waqf as a means of movable property that has been properly established with liquid money or on the other hand through the use of money. The establishment of cash waqf has tremendous merits to the populace which gives a lot of benefits to the people involved, for instance, the financial institutions, investors, and the society at large. The main focus of waqf is on the landed property or building, but some people who do not have movable property see cash waqf as an alternative as many people wanted to do a charity as ordained by Allah (s.w.t).

Nevertheless, the awareness and understanding of cash waqf are at a lower degree and the amount of money collected was not sufficient enough to carry out laudable programs for the welfare of the people compare to Singapore that has collected and displayed a significant sufficient amount of money through a rule by a secular government.

However, despite the economic recession that confronted the whole world in this twentieth century, and the increase in the world population between 2010 and 2011. Out of the 20 World Giving Index top countries all over the world, the United State of America (USA) is considered as the most charitable globally with a world giving index score of 60% (according to the World Giving Index 2011). Malaysia ranked 87 with 29% consist of 37% of giving money, 20% of volunteers while 30% are for helping strangers in terms of giving money. Equally, Thailand, (according to the World Giving Index of 2011) ranked as the top country for giving behavior at 85% of scores.

From a historical point of view, the institution of waqf has contributed immensely to the society. Even though the waqf in present before the time of Prophet Muhammad (S.A.W) however, Islam did not reject waqf rather. Islam encouraged Muslim to participate in this noble act, moreover, Islam developed the concept and legal framework of waqf institution.

The institution became one of the tools employed by the Muslims to fulfil many important needs in various sectors that are today financed by the state/the government. This can be found in almost all sectors of Islamic heritage but the most pronounced examples are; education, health care, national security, commercial and business activities, transportation facilities, shelter and food for the poor and needy, creating jobs for many people, besides supporting the agricultural and industrial sectors without indict any cost on the government (Md Husin and Ab Rahman 2013).

According to the authors, the main objective of waqf is poverty alleviation and enhancing the general welfare of the people. Various types of awqaf are established for public utilities, education, and healthcare (Ahmed 2007) . Similarly, there is also provision for supporting the religious activities, social, cultural, and economic wellbeing of the people, (Alina 2011). However, according to Islah (1996) , he said that "the scope, effect, magnitude, and validity of waqf were much greater than any other voluntary institution in Islam such as sadaqah, hibah, wasiya, qard and cooperative association".

Ismail (2009) was of the view that cash waqf has a lot of advantages that benefit each party including financial institutions and investors. Originally, waqf deals with the landed property but not many people have the asset. Therefore, cash waqf came as an alternative for individuals who have the cash to do it. Hence everyone can do a charity of cash waqf as long as they want to do it voluntarily for the sake of Allah (Antonio Shafii 2002).

According to him, cash waqf does not require a lot of money and is, therefore, suitable for the poor as it can generate more funds for the development of other assets.

In Singapore, cash waqf is under the rule of the Islamic Religious Council of Singapore. Under this rule, they have the responsibility of collecting about 6 million Dollars in a year through the salary deductions of Muslim citizens in the country (Karim 2007) . Indonesia which is the largest Muslim population in the world has a huge potential for waqf. The administration is under the Tabung Waqf Indonesia. According to Nasution (2005) , "cash waqf in Indonesia could reach three trillion per year and has been implemented since 2004".

In Malaysia, some states under their Islamic council have executed the cash waqf, notable among them are: In Perak, cash waqf was regulated under section 18 (2) 

Nigeria, like most other developed and developing countries in the world, has responded to the challenges of the COVID-19 pandemic. First, the government tried to curtail the spread of the pandemic. Second, different strategies are put forward to provide relief for the people in the country. However, the lockdown measures provided are insufficient. First, there are a lot of people in need. Second, the pandemic took a longer time than expected.

Thus, there appear both socio and economic challenges. Poverty pervaded the whole nation. Some people resulted in kidnapping, vandalizing of government properties, daylight robbery, and all sorts of criminal and devilish activities. In a true sense, the lockdown restrictions in movement in Abuja, Lagos and Ogun, and other States in the federation paralyzed the whole economy, both formal and informal sectors.

The palliatives supplied by the Federal government and some state government are nothing to write home about considering the number of households living from hand to mouth. Based on this, it clearly shows that there is a need for an alternative intervention program for such occurrence or to tame the rate of poverty.

From a historical point of view and practical situation in different countries, the waqf institution has been used to solve poverty and other socio-economic problems. It has been used to calm and urgent situation to upgrade the economic condition of people.

Based on the situation in Nigeria, there is a need for creating and establishing a waqf institution that will serve as an intervention program to support the effort of the government. This can be rightly done with the participation of critical stakeholders, such as organized labor, employers' association, and civil society organizations.

Considering the potential role of waqf institution for social-economic development and growth, the effective administration of Waqf will help in addressing the extreme poverty in the country and most especially Lagos. It will also help in empowering the vulnerable people and the poor among the society for greater economic prosperity. It will assist in ensuring the financial inclusion of small scale businesses. This will help to boost their financial capacity. In other to maximize the potential role of cash waqf, a standard institution needs to be established with proper legislative backings. This will be an alternative way of solving the economic crisis facing Lagos state in this precarious situation.

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