Trust Deficit and Institutional Bypass: How Community-Based Mediation Explains Zakat Underperformance in Kano State, Nigeria

Abstract

Kano State, Nigeria’s largest Muslim-majority region, faces a paradox where substantial private wealth coexists with widespread extreme poverty. In 2003, the state government established the Zakat and Hubusi (Waqf) Commission to mobilize Islamic philanthropic resources for poverty alleviation. However, despite more than two decades of operation, the Commission collects less than 5% of the estimated zakat potential, while poverty levels remain high. This study argues that the problem stems from a lack of institutional trust rather than religious reluctance among zakat payers. Drawing on agency theory and the Islamic concept of amanah (trustworthiness), the research examines how mosque committees and community-based organizations serve as trusted alternatives to formal institutions. Using a sequential mixed-methods approach involving surveys and interviews, the findings show that perceived corruption, political interference, and weak accountability significantly reduce public confidence in the Commission. The study highlights the importance of strengthening transparency, governance, and accountability to improve zakat management and enhance the effectiveness of Islamic social finance in poverty reduction.