The Sultanate Council has announced plans to establish the Caliphate Islamic Microfinance Bank to tackle poverty, reduce unemployment, and promote sustainable livelihoods across Nigeria and the West African subregion.
The Sultan of Sokoto, Alhaji Sa’ad Abubakar III, disclosed the initiative on Sunday in Sokoto during the opening of a three-day training and capacity-building programme for stakeholders on Baitul Mal wat Tamweel (BMT), an Islamic social finance model.
The programme was organized by the Islamic Development Bank 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, create jobs, and improve their livelihoods.
He disclosed that the initiative had reached an advanced stage, with investors, including those from outside Nigeria, expressing interest in partnering with the project.
The Sultan said the proposed institution was expected to serve as a model for Nigeria and other countries in the West African subregion.
He also described the collaboration between the Islamic Development Bank and the Sokoto State Zakat and Endowment Agency as an important step toward reducing poverty through effective collection, management, and productive use of charitable resources.
The Sultan urged participants and resource persons at the training to translate the knowledge gained into practical measures that would improve the welfare of vulnerable people and strengthen poverty-reduction efforts.
Speaking at the event, the Chairman of the Sokoto State Zakat and Endowment Agency, Malam Lawal Maidoki, called for a shift from excessive dependence on Zakat and other charitable assistance toward productive activities that would enable beneficiaries to become self-reliant.
Maidoki explained that the BMT model combines social welfare with economic empowerment by providing immediate assistance to vulnerable people while equipping them with resources and opportunities to establish businesses and generate sustainable income.
He noted that although Zakat and other charitable contributions provide essential relief to disadvantaged households, they should be complemented by initiatives that help beneficiaries achieve long-term financial independence.
According to him, the BMT model mobilizes and distributes social funds, including Zakat, Sadaqah, and Waqf, to eligible beneficiaries while supporting productive activities through Sharia-compliant financial services and business development.
Earlier, an Indonesian social activist and Islamic economics and finance expert, Saat Suharto, said the training was designed to strengthen stakeholders’ capacity to implement the BMT model in an inclusive, accountable, and locally appropriate manner.
Suharto said the initiative would help the poorest and most vulnerable members of society develop sustainable livelihoods and eventually become financially capable of contributing Zakat themselves.
He added that improving the administration of Zakat and Waqf, strengthening staff capacity, simplifying procedures, and adopting technology would enhance transparency, accountability, and operational efficiency.