HARNESSING THE POTENTIALS OF WAQF USING BLOCKCHAIN TECHNOLOGY IN NIGERIA: SOME LESSONS FROM MALAYSIA

Abstract

Islamic economic system provides veritable solutions to achieving socio-economic justice in the society. One of these instruments is waqf or Islamic endowment which historically was capable of addressing the needs of the Muslims rich and poor. The objective of this paper is to explore the role of blockchain technology in harnessing the potentials of waqf sector as a solution to the issue of transparency and accountability. With the myriad challenges in the Muslims land coupled with the dominance of conventional institutions that are prohibited by the sharia, Muslims faithful that want to follow the teachings of their religion are looking for an alternative solution to their accumulated economic problems that the existing system falls short of amending. Some of these problems in Nigeria include high level of poverty, unemployment, inequality, health and security challenges. Yet, the waqf sector, although not fully develop, faces accountability and transparency issue. The methodology adopted is qualitative in nature which includes focus group discussions, expert interview and critical review of literature. The data collected was transcribed, and analysed thematically. The paper posits that smart contracts via blockchain technology will build public confidence which may lead to unprecedented level of mobilization of waqf resources. The paper also examines Malaysian practices of waqf and blockchain technology and draw some lessons thereon.