USING DIGITAL ECONOMY IN COLLECTION AND DISBURSEMENT OF ZAKAH PROCEEDS IN NIGERIA

: Islam has laid down certain principles and limits for the economic activity of man so that the entire pattern of production, exchange and distribution of wealth shall be in conformity with the laid principles of Maqasidi-Shar’iah. Zakah is one of the medium through which wealth is distributed among the less privilege members of the society. Its’ collection and disbursement have played major role in mitigating the economic hardship among the beneficiaries. In the past, collection and disbursement of Zakat were done through traditional method of face to face. Nowadays the digital technology provided very potential windows to enhance the collection and disbursement of Zakah. Hence, the dire need to harness the digital technology in reaching out to beneficiaries of zakah. This paper therefore examines the potentiality of using the principles of digital economy in collection and disbursement of Zakah in Nigeria. The data collection involves the use of primary and secondary sources. The findings show that digital economy proves effective means in the collection and disbursement of Zakah. The paper recommends the adoption of digital technology by the various Zakah collectors in the collection and disbursement of Zakah proceeds. The paper concludes that adoption of digital economy will go a long way in addressing the problem of unequal distribution among the beneficiaries of zakah in Nigeria and elsewhere in the globe.


A. Introduction
Islam's concern is that whatever the particular form of economic activity in operation, its underlying principles should always be the same.In Nigeria, since governments do not have the resources or capacity to address all of the economic and social gaps that exist, it is crucial for both government and private sectors to be very cautious in the way and manner resources are distributed for the betterment of their citizens, otherwise the gap between the rich and the poor would continue to be widening day in day out which is very worrisome.
Thus, to ensure a just and equitable distribution of wealth in society, Islam has prescribed several institutions and enjoin Muslim to strictly comply with the instruments so as to easily create wealth and at the same time mitigate the abject poverty seen within our societies and communities, the paper examines the institution of Zakah as an instrument of mutual support for the social communities.
In contemporary period, consumers are influenced by things they see on social media and other popular websites.Digital economy has given rise to many new trends and start-up ideas.It is the worldwide network of economic activities, commercial transactions and professional interactions that are enabled by information and communications technologies (ICT).Digital economy highlights the opportunity and the need for organizations and individuals to use technologies to execute those tasks better, faster and often differently than before.
Zakat means giving part of the property that has been determined by Allah SWT for people who are entitled to receive and need zakat. 1 The definition of zakat based on the mazhab Imam Maliki the expenditure of part of a special property with full ownership within a period of one year which has reached the limit of the amount that must be issued for zakat (nishab) for entitled recipients (mustahik).
The definition of zakat in the mazhab Imam Syafi'i the expenditure of property in a special way for the group of people who are entitled to receive it.The meaning of the special method is the way of taking property, based on its nature, class, and intention on a specified matter.On the Islamic basis for zakat as stated by Allah in Surah At-Taubah verse 103: take Sadaqah (alms) from their wealth In order to purify them and sanctify them with it, and invoke Allâh for them.Verily!Your invocations are a source of security for them, and Allâh is All-Hearer, All-Knower. 2 The verse explains that the expenditure of zakat from a muzakki (person who pays zakat) can clean and purify his heart, as well as peace of mind.This means that the person who pays zakat has a clean heart and soul.Referring to the verse, zakat can be interpreted as clean, growing, blessing.3

B. Literature Review
Digitalization of Zakat is a crowdfunding platform that is used to facilitate donations to zakat institutions in order to provide more efficient and transparent information. 4It is perceived easy to use and has a positive relationship and direct effect with perceived usefulness of integrated Zakat-Crowdfunding model of digital zakat collection. 5ar et al, examines the effect of zakat on poverty alleviation through both theoretical and practical aspects.This study found that through zakat institutions, zakat funds can have a role in poverty alleviation efforts.In addition, the researcher provides a conclusion that zakat institutions can cooperate with other institutions such as microfinance to achieve its effectiveness. 6On his part Abdelbaki found that zakat eliminates poverty and inequality in Islamic countries, but this must also be supported by regulations and laws for collecting zakat from various sectors. 7Kasri in his research also proves that the zakat program in economic empowerment has succeeded in increasing the income and welfare of mustahik. 8e distribution of zakat can be in the form of a program that aims to improve the welfare of mustahik.The program is also accompanied by the distribution of life support, health, housing, and others. 9Johari who studied the topic "Zakat Distribution and Program for Sustaining Muallaf Belief and Thought" with a qualitative approach analysis found that the perception of people who claim that converts to converts to Islam are ignored is not true. 10kewise, there are literature review on digital zakat which rely on qualitative research methods.A study by Hudaefi and Beik examines the use of digital means in the collection and distribution of zakat to enhance the economy. 11The results found that the inclusiveness of digital content is practically significant in campaigning zakat as a religious obligation that contributes to social and financial benefits.An exploratory study by Manara et al, also believed that the digital zakat system could serve as an alternative method to overcoming the potential failure of zakat in Muslim Countries. 12Using a qualitative approach, it proposed that a crowdfunding-zakat model could enlarge the potency of zakat collection and reduce poverty problems in the country.This conclusion is agreed by Hudaefi et al, who also believed that zakat digitalization is an important effort to optimize zakat collection.Most of the studies in digital zakat currently focus on the use of digital zakat and the strategy to increase and boost the economy.13

C. Methodology
This research adopted and employed literature study approach in order to provide the necessary focus for the research.The literature study method is principally the same as research in general, but the research data acquired through the literature study method are secondary data.
Finding and gathering of references that are relevant to the topic of this research is first of the researchers three processes take in preparing this paper.Secondly, in order to fully explain the intersection of the paper, a number of scientific publications that have been gathered are then analysed and elaborated.Thirdly, as the final phase of, the researchers draw a conclusion that precisely addresses title of the paper; the use of digital economy in collection and distribution of zakah proceeds in Nigeria.

Zakah an Instrument for the Promotion of Mutual Assistance
There are five fundamental principles upon which Islam lies.These principles are obligatory on Muslims in line with the conditions attached to each.Among these is the institution of Zakah which is a form of social welfare.Zakah literally means "that which purifies".It is considered a way to purify one's income and wealth from sometimes worldly, impure ways of acquisition."Just as ablutions purify the body and salah purifies the soul (in Islam), so Zakah purifies possessions and makes them pleasing to Allah."Is a form of alms-giving treated in Islam as a religious obligation or tax which is collected from rich person in society and retune to the poor person in the same society.
Hassan 14 notes that Zakah is one of the pillars of Islam.It is a religious duty necessary on those who fulfill the regulations of Islam.It is a mandatory charitable contribution often considered to be a tax rich people.The payment and distribution of Zakah have played major role in the history of Islam.One of the major roles played by Zakah is mitigating hardship and wealth creation in a society most especially at the present period of economic downturn caused by many factors.

Obligation of Zakah
There are numerous verses of the Glorious Qur'an emphasizing on the institution of Zakah.
The following illustrations explain.
And be steadfast in prayer; practice regular charity; and bow down your heads with those who bow down [in worship]. 15n another verse, Allah (SWT) said: And in their wealth and possessions [was remembered] the right of the [needy,] him who asked, and him who [for some reason] was prevented [from asking]. 16َّ And be steadfast in prayer and regular in charity: And whatever good ye send forth for your souls before you, ye shall find it with Allah: for Allah sees Well all that ye do To substantiate the above Qur'anic quotations, the Prophet (SAW) says: Islam is based on (the following) five (principles): To testify that none has the right to be worshipped but Allah and that Muhammad is the Messenger of Allah).Iqamat-as-Salat [to perform the (compulsory congregational) Salat (prayers)].")To pay Zakat to perform Hajj.(i.e.pilgrimage to Makkah).To observe Saum [fasts during the month of Ramadan. 17kah is based on income and the value of all of one's possessions.It is customarily 2.5% (or 1/40) of a Muslim's total savings and wealth above a minimum amount known as nisab.The obligation of al-zakat is mentioned thirty-six times in the Qur'an out of which twenty-one attached to the obligation of Salat (the ritual worship); eight categories of the recipients of Zakah are clearly defined in the following Qur'an verse: Charities are for the poor, and the destitute, and those who administer them, and for reconciling hearts, and for freeing slaves, and for those in debt, and in the path of Allah, and for the traveler in need-an obligation from Allah.Allah is All-Knowing, Most Wise. 18e following can be deduced from the above Qur'an verse which clearly defined the recipients of Zakah in Islam: 1. Eliminate poverty and bridge the gap between the rich and the poor 2.
Ensure fulfillment of the basic needs of every citizen, regardless of their faith or gender

3.
Help those who are at risk of falling into error.

4.
Freeing of slaves and those struggling under loans.

5.
Helping anyone affected by calamity, pandemic or struck by tragedy.If same idea and techniques is applied in Nigerian situation, it shall surely go a long way in providing solutions to the present economic recession caused by pandemic, economic inflation, fuel subsidy removal etc.

Significance of Zakah in Islam
Abdullahi 19 establishes a relationship between acts of righteousness and Islamic rituals as evidently mentioned in the following Qur'an verse.
Righteousness does not consist of turning your faces towards the East and the West.But righteous is he who believes in Allah, and the Last Day, and the angels, and the Scripture, and the prophets.Who gives money, though dear, to near relatives, and orphans, and the needy, and the homeless, and the beggars, and for the freeing of slaves; those who perform the prayers, and pay the obligatory charity, and fulfill their promise when they promise, and patiently persevere in the face of persecution, hardship, and in the time of conflict.These are the sincere; these are the pious. 20he above Qur'an verse indicates that zakah and infaq (spending on the needy) are two separate and distinct obligations on Muslims.If zakah collections are enough to meet all the needs of the needy, as was the case in the reign of Umar ibn Abd al-Aziz, then the Muslims are absolved of the obligation of infaq.
Yusuf 21 opined that after the payment of the annual Zakah (poor due), it is not necessary to spend more.But to be accurate, if somebody pays Zakah and yet retains enough money with him, and there are some needy people around him, it would be required of him to spend on them.Imam At-Tirmidhi quoted a tradition in which the Messenger of Allah (SAW) said: "Indeed there is a right (for poor) in the wealth addition to Zakah".Therefore, Zakah could serve as a means of stabilizing the economy of a nation at any given time.
The general public deserved specific social welfare right which is to be fed by those who are well-to do in the society.He supported his position the following verses affirmed that: O you who believe!Give of the good things you have earned, and from what We have produced for you from the earth.And do not pick the inferior things to give away, when you yourselves would not accept it except with eyes closed.And know that Allah is Sufficient and Praiseworthy.Satan promises you poverty, and urges you to immorality; but Allah promises you forgiveness from Himself and grace Allah is Embracing and Knowing. 22he institution of zakah is crucial to the attainment of the socio-economic advancement of a people if efficiently collected and re-distributed.Ahmed 23 (2004) stresses that zakah and waqaf are institutions that are vital in poverty reduction.He however recommends that there should be income support programs for the physically challenged people in order to boost productivity in the society.
Islamic community is conceived as a society where people relates with one another by being supportive to other men, responsible being to the environment, and as wellbeing submissive to the dictates of Allah.
Zakah facilitates productivity of the poor, promotes productive investment, and gives room for financing various development projects such as education, health care, safe water and other social welfare activities, designed utilities for the benefit of the poor.They further proclaim that, Zakah proceeds have a multiplier effect on the national economy if invested in productive venture.
Ahmad explains that Zakah promotes fundamental unity and brotherhood of mankind while Chapra opines that Zakah promotes a balance between individual and social interest and helps to actualize one of the maqasid al-Shari'ah (the goals of the Shari'ah).
The article "An Islamic perspective on human development" also affirms that Zakah does not only enhances the revenue drive of the state for its welfare activities in sectors like education, health and social services, but also enables it to the carrying out of its obligations onto the less privilege such as the poor and the needy.It also promotes decentralization of wealth in the hands of a few.It checks growing income disparities, it fuels productive investment as a way to avoid an inevitable diminishing of one's wealth if left as capital and it bridges the gap between the rich and the poor.
The consequences behind refusal to give Zakah are expressed in the following Qur'anic verses and prophetic traditions: And there are those who bury gold and silver and spend it not in the way of Allah: announce unto them a most grievous penalty.On the Day when heat will be produced out of that [wealth] in the fire of Hell, and with it will be branded their foreheads, their flanks, and their backs, their flanks, and their backs.-"This is the [treasure] which ye buried for yourselves: taste ye, then, the [treasures] ye buried! 24imilarly, the Prophet (SAW) was reported to have said: Whoever is made wealthy by Allah and does not pay the Zakah of his wealth, then on the Day of Resurrection his wealth will be made like a bald-headed poisonous male snake with two black spots over the eyes (or two poisonous glands in its mouth) (').The snake will encircle his neckand bite his cheeks and say, 'I am your wealth, I am your treasure.'"Then the Prophet recited the Qur'anic Verses: …And let not those who covetously withhold of the gifts which Allah Hath given them of His Grace, think that it is good for them: Nay, it will be the worse for them: soon shall the things which they covetously withheld be tied to their necks Like a twisted collar, on the Day of Judgment.To Allah belongs the heritage of the heavens and the earth; and Allah is wellacquainted with all that ye do. 25n another report the Prophet says: (On the Day of Resurrection) camels will come to their owners in the best state of health they have ever had (in the world), and if he had not paid their Zakat (in the world) then they would tread him with their feet; and similarly, sheep will come to their owners in the best state of health they have ever had in the world, and if he had not paid their Zakat, then they would tread him with their hooves and would butt him with their horns."The Prophet added, "One of their rights is that they should be milked while water is kept in front of them."The Prophet added, "I do not want anyone of you to come to me on the Day of Resurrection, carrying over his neck a sheep that will be bleating.Such a person will (then) say, '0 Muhammad!(please intercede for me,)' I will say to him, 'I can't help you, for I conveyed Allah's Message to you.' Similarly, I do not want anyone of you to come to me carrying over his neck a camel that will be grunting.Such a person (then) will say, '0 Muhammad!(please intercede for me).'I will say to him, 'I can't help you for I conveyed Allah's Message to you. 26sed on the above discussions indicating the concept, obligation, recipients of zakah and its significance in social support to mitigate extreme poverty within our communities and create wealth, the paper deemed it fit at this juncture, to study the use of Digital economy as a tool for collection and distribution of zakah.

Zakah Collection and Disbursement in Historical perspective
During the time of the Prophet Muhammad (SAW), the obligation to pay zakat from those who were wealthy was directly manage by the Prophet (SAW), so that the practice of zakat can run well in accordance with the demands of the Shari'ah, so that the benefits of zakat can be felt directly by the Mustahik right away.Such practices however, underwent some changes after the demise of the Prophet Muhammad (SAW).
The demise of the Prophet (SAW) was considered by some ignorant people as the end of the zakat collection disbursement, as many refused to pay zakat.Caliph Abu Bakr al-Siddiq had to stand against this people and they were forced to pay zakat.
The caliphate of Umar bn Khattab saw wonderful development.The collection and disbursement of Zakah developed in such a way that caliph umar moved from house to house distributing the proceeds of zakah.He did not hesitate to carry a sack of wheat to give to his poor people.Umar bn Khattab gave many fatwas related to zakah, and make lots of innovations about collection and disbursement of Zakah.Umar's Ijtihad deserves to be used as a basis, analyzed, and used as material for comparison by the successors.He formed a Sa'i Committee whom was saddled with the responsibilities of collecting and disbursement of Zakah.The sa'i was responsible for identification, collection and disbursement of Zakah.This legacies and practices were sustained for some time in the history of Islam.
Unfortunately, the practice of collection and disbursement of zakah were abolished by the later generation living it to the mercy of the rich people to collect and disburse.

The absent of official committee responsible for the collection and disbursement of Zakah
Proceed within Muslim communities seriously affect the smooth and the process of collecting and disbursement of Zakah in almost all Muslim societies.
In Nigeria, Muslim calculate the percentage of their resources and select the beneficiaries by themselves, sometimes they include their parents and wives among the beneficiaries which is totally wrong, in some areas, Muslims organizations use to set up committee of Zakah within the adherents of such organizations but at long last it become a mirage due to so many factors ranging from lack of trust on the committee members, failure of the well to do from among the followers of the organizations to actively support the zakah committee, bias and selfish interest while selecting the beneficiaries from the committee of zakah, failure to assess the affluent and the beneficiaries in remote areas do to insecurity challenges etc. to overcome the above mentioned challenges and others, a strong zakah committee has to be set up under a strong Muslim councils in every state including the state that is govern by non-Muslim governor and to use Digital technology in the process of collecting and disbursement of Zakah proceed.

The need for Digital technology in the collection and disbursement of Zakah proceed in Nigeria
Many factors call for the need to use Digital technology for the smooth collection and disbursement of Zakah proceeds in Nigeria, among which the following: 1. Insecurity: Insecurity simply means: state of not being safe or protected.In a broader or wider perspective, insecurity presupposes a state of general breakdown of law and order, or a situation where the citizens of a country are exposed to an uncontrollable dangereveryone lives in fear of whatever might happen the next moment.Insecurity, therefore, suggests a situation where a state of anarchy is unleashed on a general populace and the human life becomes 'nasty.The issue of insecurity in Nigeria has become something of grave concern to all well-meaning citizens most of who continue to wonder how the country arrived at such a dastardly situation where no one is safe; and worse still, rather than abate, the problem is escalating and now totally out of control perspective, Now a number of other non-state armed groups are spreading the violence all over Nigeria.The south-eastern region of the country has been engulfed by separatist violence and criminal opportunism crippling businesses in major trading centres like Onitsha, Anambra State.Take the activities of the "unknown gunmen" "unknown gunmen", criminals who often disguise as Biafra separatists to perpetrate gang violence, especially kidnapping for ransom and armed robbery.
Meanwhile, the north-western part of Nigeria has been enmeshed in crime and terror: kidnappings, mass abductions, enforced disappearances, cattle rustling and localized raids.
Communities in the region have been displaced and some are essentially held captive in their own homes by bandits and Islamist insurgents.
The north-central region, meanwhile, is still grappling with the farmer-herder crisis, which became rife from around 1999.The crisis is often complicated by a mix of herder militancy and jihadi-style banditry, especially in parts of Niger State.
The south-west, including places like Lagos, has witnessed an upsurge of gang, cult and ritual violence.This is in addition to the piracy and oil theft prevailing in the Niger Delta area.
The victims of these crises in different parts of Nigeria need to be assisted through the proceeds of zakah.Using digital technology in the process of collecting and disbursement of Zakah in the present situation of insecurity could surely help to secure both the committee of Zakah and the process all together.

Lack of trusted and reliable Zakah Committee:
This is yet another challenge facing the process of collecting and disbursement of Zakah in Nigeria.Al-amanah (trustworthiness) and al-mas'uliyyah (responsibility) are obligatory for every Muslim.Both of these noble qualities show a character that will determine good morals in a person in daily affairs.Islam demands its Ummah to be characterized by the nature of trust that is mentioned in the Qur'anic verses and also the hadith of the Prophet Muhammad (SAW). 27In addition, to determine the future of society, it is also a determinant of the sustainability of management in an organization.Administrative affairs of a business must be handled with care so as not to be contaminated with the treacherous elements of the members of the organization.This is because institutional management activities are an important component that is directly related to elements of Islamic law.Often we see so many cases of breaking the trust into the headlines in the press. 28e corruption phenomenon in politics and economy is one of the consequences of lack of integrity (include al-amanah and al-mas'uliyyah).There are countries that are seen to be in close proximity to bribery in their jobs until such practices become common in their lives.Bribery threats exist in various sectors and areas such as social, economic, political and administrative affairs of a country.It has become a problem not only for a country but it is a problem internationally 29 .It is based on the above discussion, the need to make of use of Digital technology in the process of collection and disbursement of Zakah proceed in Nigeria become necessary so as to create sanity in the system and allow integrity play its role.Digital technology will enable easy collection and disbursement of the proceeds of zakah through the account of the beneficiaries.Similarly, the collection will be accomplished through a central account created by the council.

Significance of Using Digital Economy in Contemporary
The need to employ digital technology in the collection and distribution of Zakah in Nigeria should not be overemphasis.The following are some of the significance of digital economy today in people's life: 1. Promotes Use of the Internet It is a well-known fact that, most of the daily work can today be done on the internet.The massive growth of technology and the internet that began in the USA is now a worldwide network.So there is a dramatic rise in the investment on all things relatedhardware, technological research, software, services, digital communication etc.And so this economy has ensured that the internet is here to stay and so are web-based businesses.

Rise in E-Commerce:
The businesses that adapted the internet and embraced online business in the last decade have flourished.The digital economy has pushed the e-commerce sector into overdrive.Not just direct selling but buying, distribution, marketing, creating, selling has all become easier due to the digital economy.
3. Digital Goods and Services: Gone are the days of Movie DVD and CD's or records.Now, these goods are available to people digitally.There is no need for any tangible products anymore.Same is true for services like banking, insurance etc.There is no need to visit your bank if you can do every transaction online.So certain goods and services have been completely digitized in this digital economy.
We have neglected nothing in the Book. 33formation Technology (IT) serves as Allah's bounty on earth to mankind (Muslims to be specific), and as well as wisdom to them, a sound Prophetic tradition was reported from the messenger of Allah saying: Wisdom is a lost property of a believer wherever he fines it he grasps it 34 The above discussions augment the validity of using digital technology as far as Islam is concern for positive purposes.Using Digital economy in the collection and disbursement of Zakah proceed is surely the best way of sanitizing the sector for poverty reduction and wealth creation among populace in Nigeria.

Using Digital Economy in Collection and Disbursement of Zakah Proceed
The development in technology has ease people's economic activities, with digitizing the financial sector, many financial institutions have migrated from traditional to digital system in their activities.By their nature the technological facilities are neutral and can be used for different purposes.Therefore, applications used by these financial institutions can also be used in zakah collection and disbursement.As the concept applied in the running the financial institutions is similar to zakah management by zakah institutions.In this regard, the zakat institutions can safely and conveniently use the same technological software in collection and disbursement of Zakah.
Rachman & Salam 35 .Mentions research related to the application of financial technologies has been carried out in line with the development of digital technology in strengthening zakah management through a financial technology system.Other researches show major role in improving the quality and efficiency of financial services.However, the management of zakah through e-technology required some innovations which include aspects of legal compliance, shari'ah compliance, accountability, and security structures.This can be realized through institutional integrity, technology development systems, standardization, certification and education.
management institutions due to more structured management.A more accurate reporting and distribution system will also increase the effectiveness of the management and distribution of zakat to the broader community.
However, designing the online-based zakah system must also pay attention to Maqasidi Shari'ah such as property ownership and determining the calculation of the amount according to fiqh science.
More researches show the effectiveness and viability digital Zakah management in collection and distribution during the Covid-19 pandemic.This is due to the community's increasing online activity amid the pandemic, which has encouraged various sectors to adapt to the digital system.
Inspite of the technological breakthrough in technology, there are however some threats accompanying the use of e-technology in the collection and disbursement of Zakah, 39 , mention that the use of technology and information facilitates zakat institutions in managing zakat effectively, but on the other hand the technology has a potentially serious threat where the ease of accessing information online related to zakat becomes a way for users who are not responsible for cybercrime or crime through the internet network The more sophisticated security technology along with the increasingly sophisticated technology of theft in the digital realm.In addition, with the development of the flow of information and technology today has become a double-edged sword, because in addition to providing a good / positive contribution to society, on the other hand it has negative impacts.

Recommendations:
1. Muslim council under a strong and active chairman should Review and harmonize all frameworks, standards and guidelines in order to create a dynamic environment for the development of a digital technology through collection and disbursement of Zakah proceed.

E. Conclusion
Zakah is a form of alms-giving treated in Islam as a religious obligation or tax which is collected from rich person in society and retune to the poor person in the same society, it has a multiplier effect on the national economy, it promotes fundamental unity and brotherhood of mankind that help to balance between individual and social interest and helps to actualize one of the maqasid al-Shari'ah (the goals of the shari'ah).
Digital economy can be used according to scholars of Islamic jurisprudence to accelerate the digitalization of collection and disbursement of Zakah processes and improve service delivery, transparency and accountability; by developing digital education and support digital literacy of Muslims in both urban and rural areas on the importance of using digital technology in an attempt to migrate from the traditional method of face to face collection and disbursement of zakah proceeds so as to improve trust, confidence and security around digital processes and activities.
Should Enact new requisite on how to collect and disburse Zakah items from Muzakky (those legible to pay Zakah) to the beneficiaries Digitally 3.An enabling environment should be created to sensitize the general public on the current development in the field of collecting and distribution of Zakah through the Digital technology for the smooth running of the system effectively.4. A special training should be sketched to train the Zakah committee