Zakat FAQ

Zakat is the third pillar of Islam: an obligatory annual charitable contribution of 2.5% of qualifying wealth. It purifies wealth and supports those in need. The word 'Zakat' means 'purification' and 'growth' in Arabic.

Every adult Muslim who possesses wealth above the nisab (minimum threshold) for a complete lunar year (hawl). This includes both men and women. Zakat is also due on the wealth of minors, according to most scholars.

Nisab is the minimum amount of wealth that makes Zakat obligatory. It is measured in gold (87.48 grams) or silver (612.36 grams). The naira value changes daily with gold and silver prices, so check current rates or use our calculator.

Once per lunar year (hawl = 354 days). You pick a Zakat date and calculate annually. Many Muslims choose Ramadan for the additional blessings, but any date works.

2.5% (or 1/40th) of your qualifying wealth above nisab. This rate applies to most types of wealth including cash, gold, silver, investments, and business assets. Agricultural produce follows different ushr rates.

Yes. You can pay Zakat in installments throughout the year, and even pay in advance before your Zakat date. However, your total payment for the year should equal 2.5% of your qualifying wealth.

No. There is no automatic Zakat deduction from bank accounts anywhere in Nigeria, whether at conventional banks or non-interest banks like Jaiz and Lotus. Calculating and paying Zakat is entirely your own responsibility.

Several Sharia-implementing northern states, including Kano, Zamfara, and Sokoto, run government Zakat boards or commissions. They collect Zakat from those who choose to pay through them and distribute it to the eight categories of eligible recipients. Contributing through a board is voluntary; it is one valid route alongside direct giving and established Islamic charities.

Yes, provided the board distributes to Zakat-eligible recipients, which is the purpose of these institutions. The religious obligation is to calculate correctly on all your assets and ensure the money reaches eligible recipients; the channel you use is your choice.

Ushr is the Zakat on agricultural produce: one-tenth of the harvest from rain-fed land and one-twentieth from irrigated land, due at harvest time rather than on a lunar-year cycle. Farmers in Nigeria self-assess it or pay through their state's Zakat institution where one exists.

1) Add up all zakatable assets (cash, gold, silver, investments, business inventory). 2) Subtract qualifying debts due within the year. 3) Check if the net total exceeds nisab. 4) If yes, pay 2.5% of the total. Use our free Zakat calculator for an easy step-by-step calculation.

On total zakatable wealth, which includes cash, gold, silver, investments, business inventory, and receivables. Your primary home, car, clothes, and personal items are NOT included.

Yes, most scholars allow deducting debts that are due within the current year (or the coming 12 months). Long-term obligations like home financing instalments are typically only deducted for the current year's payments.

Most scholars recommend using the gold nisab (more conservative, higher threshold). Some allow using silver nisab (lower threshold, meaning more people would pay Zakat). Our calculator uses the gold standard by default.

Calculate Zakat based on your wealth at your Zakat date. If your wealth dropped below nisab at any point during the year, the hawl (year) resets according to many scholars.

No. Your primary residence is exempt from Zakat, regardless of value. However, investment properties held for resale ARE zakatable at market value.

No. Personal vehicles used for transportation are exempt. However, if you're a car dealer, vehicles in your inventory are zakatable as trade goods.

Gold and silver jewelry: scholars differ. The Maliki position, followed by most Nigerian Muslims, allows exemption for jewelry in regular personal use, as do the Shafi'i and Hanbali schools. The Hanafi position treats all gold and silver jewelry as zakatable, including what is worn regularly. Weigh your gold in grams and value it at today's rate, and follow the school you adhere to.

This is debated. For Retirement Savings Account balances, including RSA Fund VI, the conservative view is to pay Zakat annually on the accessible balance. A common alternative view treats locked amounts as non-possessed until withdrawal, since RSA funds cannot be freely accessed before retirement. Consult a scholar you trust.

Yes, most contemporary scholars agree. Calculate 2.5% of current market value of all crypto holdings. See our cryptocurrency Zakat guide for details.

FGN Sukuk holdings count as zakatable wealth at current value, and the rental income they pay is halal. Conventional FGN savings bonds and treasury bills are interest-bearing: the principal is zakatable, but the interest should be given away entirely as purification. The halal alternatives are FGN Sukuk and Shariah-compliant funds.

If you expect to collect the debt, include it in your Zakat calculation. Bad debts or money unlikely to be recovered can be excluded.

The Quran specifies 8 categories (Surah At-Tawbah 9:60): the poor, the needy, Zakat administrators, those whose hearts are to be reconciled, freeing captives, those in debt, in the way of Allah, and travelers in need.

You cannot give Zakat to your parents, grandparents, children, or grandchildren (people you're obligated to support). You CAN give to siblings, aunts, uncles, and more distant relatives if they qualify.

The majority of scholars say Zakat is for Muslims only. However, Sadaqah (voluntary charity) can be given to anyone.

You can give directly to eligible individuals (often the most rewarded route when you know genuine need), through established Islamic charities that maintain Zakat funds with Shariah supervision, through your mosque's Zakat committee, or through a State Zakat Board in Sharia-implementing states. Verify any organization's Zakat policy and Shariah oversight before giving.

Yes. Zakat al-Fitr is a specific charity paid at the end of Ramadan before Eid prayer. It's a fixed amount per person, typically the value of about 2.5 kg of staple food such as wheat or its cash equivalent. Zakat al-Mal (on wealth) is the 2.5% annual obligation discussed throughout this guide.

Yes. You can pay Zakat before your Zakat date arrives. This is especially useful during Ramadan or when you encounter someone in urgent need.