Sultanate Moves To Establish Islamic Microfinance Bank To Fight Poverty

The Sultan of Sokoto, Alhaji Muhammad Sa’ad Abubakar III, has said the Sultanate Council is working to establish the Caliphate Islamic Microfinance Bank to tackle poverty, support small-scale businesses and promote sustainable livelihoods.

The Sultan disclosed this on Monday in Sokoto at the opening of a three-day training and capacity-building programme on Baitul Mal wat Tamweel (BMT) for stakeholders, organised by the Islamic Development Bank (IsDB) in collaboration with the Sokoto State Zakat and Endowment Agency.

Represented by the District Head of Kilgore, Alhaji Jabbi Kilgore, the Sultan said the proposed bank would provide small-scale entrepreneurs with access to Islamic financing to expand their businesses and create employment opportunities.

He said the initiative was at an advanced stage, with investors, including those from outside Nigeria, expressing interest in partnering with the project.

“The aim is to establish a bank that will serve as a model not only for Nigeria but also for the West African sub-region,” he said.

The Sultan said the proposed institution was expected to support efforts to reduce poverty by expanding access to financing for entrepreneurs and helping them build sustainable businesses.

Speaking at the event, Chairman of the Sokoto State Zakat and Endowment Agency, Malam Lawal Maidoki, said the BMT model combines social welfare with economic development by providing immediate assistance to vulnerable people while helping them achieve sustainable livelihoods.

Maidoki explained that the model mobilises and distributes social funds, including Zakat, Sadaqah and Waqf, to eligible beneficiaries while supporting productive economic activities through financial services that comply with Islamic principles.

He said the approach could help connect social assistance with long-term economic empowerment by enabling beneficiaries to improve their livelihoods.

Earlier, an Indonesian Islamic economics expert and resource person, Saat Suharto, said the training programme was designed to strengthen stakeholders’ capacity to apply BMT principles in an inclusive manner suited to local needs.

The programme brought stakeholders together to build their understanding of the model and its potential application in supporting vulnerable groups and promoting economic development.