The Sultanate Council is advancing plans to launch the Caliphate Islamic Microfinance Bank as part of efforts to combat poverty, create jobs and promote sustainable livelihoods in Nigeria and across West Africa. The Sultan of Sokoto, Alhaji Sa'ad Abubakar, announced the initiative at a three-day training and capacity-building programme held in Sokoto, disclosed by the News Agency of Nigeria. The event was organised by the Islamic Development Bank in partnership with the Sokoto State Zakat and Endowment Agency and focused on Baitul Mal wat Tamweel principles, a model combining social welfare with economic development.
According to the Sultan, the proposed bank has reached an advanced stage of development, with investors both inside and outside Nigeria expressing interest in the project. The bank would provide small-scale entrepreneurs with access to Islamic finance to expand their businesses and create employment. The Sultan said the aim is to establish a model institution that could be replicated not only across Nigeria but also throughout the West African sub-region.
The Chairperson of the Sokoto State Zakat and Endowment Agency, Malam Lawal Maidoki, explained that the Baitul Mal wat Tamweel model addresses a critical gap in financial access. While Zakat and charitable assistance provide essential relief to disadvantaged households, Maidoki said such interventions alone do not create pathways from vulnerability to sustainable livelihoods. Conventional microfinance, he noted, may be inaccessible or unsuitable for people unable to meet standard conditions or those seeking Shariah-compliant financing.
The model mobilises social funds including Zakat, Sadaqah and Waqf to support productive activities through Islamic financial services and business development support. Maidoki said this approach links social protection with economic empowerment, enabling vulnerable households to establish businesses and generate income. Saat Suharto, an Indonesian social activist and Islamic economics expert, said the training programme was designed to strengthen stakeholders' capacity to apply the model in ways that are inclusive, accountable and locally appropriate.
For savers, borrowers and business owners in Nigeria, this initiative could provide access to financing options that align with Islamic principles while supporting poverty reduction and economic empowerment.
Suharto added that the programme identified the need to strengthen Zakat and Waqf administration through improved staff capacity, simplified procedures and technology deployment to enhance transparency and operational efficiency. The ultimate goal, he said, is to support the poorest and most vulnerable individuals in developing sustainable livelihoods and becoming financially capable of contributing Zakat themselves over time.