THE ROLE OF ISLAMIC FINANCIAL INSTITUTIONS IN PROMOTING PHILANTHROPY IN NIGERIA: A CRITICAL ASSESSMENT OF PRACTICES, IMPACT, AND REGULATORY FRAMEWORKS

Abstract

This study critically examines the role of Islamic financial institutions (IFIs) in fostering philanthropic activities within Nigeria's socio-economic landscape. Drawing upon both theoretical frameworks and empirical findings, the research explores the scope, mechanisms, and effectiveness of philanthropic interventions facilitated by IFIs, with particular attention to zakat (obligatory almsgiving), waqf (endowments), and sadaqah (voluntary charity). Utilizing a mixed-methods approach—including structured interviews, surveys, and content analysis of financial disclosures—the study evaluates the extent of institutional involvement in sectors such as education, healthcare, poverty alleviation, and community development. The findings reveal that while Islamic financial institutions play a significant and multifaceted role in philanthropy, their efforts are constrained by regulatory ambiguities, limited public engagement, and insufficient institutional coordination. This paper offers strategic recommendations aimed at strengthening the operational frameworks, regulatory support, and public awareness initiatives necessary to enhance the social impact of Islamic financial institutions. The study contributes to global discourses on ethical finance and faith-based philanthropy, with particular relevance to policymakers, scholars, and development practitioners in emerging Islamic finance markets.