The Sultanate Council is advancing plans to establish the Caliphate Islamic Microfinance Bank, an initiative aimed at reducing poverty, creating employment opportunities and promoting sustainable livelihoods across Nigeria and the wider West African region.
The Sultan of Sokoto, Sa’ad Abubakar, announced the development on Sunday in Sokoto during the opening of a three-day training and capacity-building programme for stakeholders on Baitul Mal wat Tamweel (BMT). The programme was organised by the Islamic Development Bank (IsDB) in collaboration with the Sokoto State Zakat and Endowment Agency.
Represented by Jabbi Kilgore, the District Head of Kilgore, the Sultan said the proposed bank would provide small-scale entrepreneurs with access to Shariah-compliant financing to expand their businesses, generate employment and improve their livelihoods. He added that the project had reached an advanced stage, with investors, including international stakeholders, expressing interest in participating.
According to the Sultan, the institution is intended to serve as a model for Islamic microfinance not only in Nigeria but also throughout the West African sub-region.
The initiative also highlights the potential role of Islamic social finance in addressing poverty through the effective collection, management and productive distribution of Zakat and other charitable resources.
Speaking at the event, Lawal Maidoki, Chairman of the Sokoto State Zakat and Endowment Agency, emphasised the need to move beyond dependence on charitable assistance towards economic empowerment initiatives that enable beneficiaries to become self-reliant.
He explained that the Baitul Mal wat Tamweel model integrates social welfare with economic development by providing immediate assistance to vulnerable households while helping them access resources, develop businesses and establish sustainable sources of income.
Maidoki noted that although Zakat and other charitable contributions provide essential support to disadvantaged communities, long-term poverty reduction requires additional opportunities for entrepreneurship and income generation. He also highlighted the limitations of conventional microfinance for individuals who cannot meet its requirements or prefer financing based on Islamic principles.
The BMT framework combines social finance instruments, including Zakat, Sadaqah and Waqf, with Shariah-compliant financial services and business development support. This approach can help connect social protection with productive economic activities, enabling vulnerable households to work towards financial independence.
Earlier, Saat Suharto, an Indonesian social activist and expert in Islamic economics and finance, said the training programme was designed to strengthen stakeholders’ capacity to implement BMT principles in an inclusive, transparent and locally appropriate manner.
He explained that the initiative seeks to help the poorest and most vulnerable members of society establish sustainable livelihoods and eventually achieve sufficient financial stability to contribute Zakat themselves.
The programme also emphasised the importance of strengthening Zakat and Waqf administration, enhancing staff capabilities, simplifying operational procedures and adopting technology to improve transparency, accountability and efficiency.
The proposed Caliphate Islamic Microfinance Bank reflects growing interest in leveraging Islamic finance and social finance instruments to support financial inclusion, entrepreneurship and sustainable poverty alleviation across Nigeria and West Africa.