WAQF: A CONTRIBUTORY TOOL FOR BRIDGING INFRASTRUCTURAL DEFICIT IN NIGERIA

Abstract

This paper seeks to examine waqf as a tool for bridging infrastructural deficit in Nigeria. Infrastructure has always been the bone of contention in Nigeria due to its inadequacies and couple with its role to economic growth and development. Successive administrations have done their part towards resolving the infrastructural gap but it still persists, coupled with an increasing population. However, plans and strategies such as creating rooms for Public Private Partnership (PPP), Sourcing for funds within and outside country etc have been rolled out. Though, some of these steps have further widened the expenditure profile of the government via debt servicing. Despite all this moves it is yet to fill the infrastructure deficit. Thus, this calls for a waqf system, an aspect of Islamic social finance. This paper revealed the various conceptual definition of waqf, its types, permissibility and how is to be managed. However, a government budget constraint function was introduced to analyze how waqf can contribute in bridging infrastructural deficit which was further supported by adopting a modified revenue function via assumption that it only considers the population statistics of Nigerian citizen within the ages of 15-64yrs, N20 will be contributed per week and 5% level of cash collection error rate will be considered. The study revealed that Nigeria could earned a projected amount of about N1.4b and N5.8b weekly and monthly respectively which will amount to N76b yearly if for instance the cash waqf is adopted. This means that there will be some boast on the government revenue and if such fund is expended on certain components of developmental expenditure, it will go a long way to bridge infrastructural deficit. The study recommends legislation of act setting up waqf, public awareness should be properly done etc.