Murat Cizakca’s research while affiliated with KTO Karatay University and other places

The Nigerian state is the most populous African nation with a sizeable number of Muslims. While other countries with a significantly fewer number of Muslims benefit from the visible dividends of a thriving waqf institution, the same cannot be said of Nigeria. The institution of waqfs in the country is almost non-existent or, at best, described as comatose. Therefore, this study attempts to formulate workable prescriptions for waqf development in Nigeria. Data were gathered from relevant documents, such as related local regulations and the result of previous studies. Considering the normative characteristics for the functionality of waqf institution, the data were analysed using documentary enquiry, legal reasoning, descriptions, narratives, and critical studies on the waqf system in Nigeria. The findings indicate a dire need for dedicated legislation for waqf operations in the country that will expedite establishing a sound and well-functioning waqf system. This future law should incorporate the policy briefs contained in this paper. ==================================================================================================== ABSTRAK – Menghilangkan Hambatan Perputaran Wakaf: Formulasi Kebijakan untuk Nigeria. Nigeria adalah negara di Afrika yang terpadat dengan jumlah Muslim yang cukup besar. Tidak seperti negara-negara lain yang bahkan jumlah penduduk Muslimnya jauh lebih sedikit, Nigeria hampir tidak bisa mendapatkan keuntungan apapun dari adanya sistem wakaf dalam Islam. Eksistensi lembaga wakaf hampir tidak terlihat di negara ini, atau, dapat dikatakan sedang mati suri. Oleh karena itu, kajian ini berupaya untuk menghilangkan hambatan-hambatan operasionalisasi wakaf dengan merumuskan formulasi yang dapat diimplementasikan untuk Nigeria. Data penelitian dikumpulkan dari studi dokumentasi seperti undang-undang dan peraturan terkait serta hasil-hasil kajian yang relevan. Dengan pertimbangan karakteristik normatif fungsi lembaga wakaf, analisis dokumen dilakukan dengan penalaran hukum, telaah deskriptif, naratif, dan studi kritis terhadap fungsi wakaf di Nigeria. Hasil kajian menyimpulkan bahwa ada kebutuhan mendesak bagi Nigeria untuk membentuk undang-undang khusus wakaf yang dapat mempercepat pembentukan sistem wakaf yang sehat dan fungsional. Formulasi policy brief dari kajian ini dapat digunakan sebagai bahan pembentukan aturan dimaksud.

While it is true that more often than not, constitutional democracies might enshrine freedom of religion and thus provide for equal treatment of all religions within a given state, the Islamic characterization of the waqf institution transcends the subsisting limits allowed for in the not-for profit legal infrastructure including their taxation exemption provisions in the Nigerian state. According to modest statistics, Nigeria is home to about 100 million Muslims but her governing laws are at best described as secular. The objective of this research is therefore to harmonize the Islamic law of waqf institution and the extant not-for-profit laws in Nigeria such that the institution can function within the Nigerian state without infringing on the Islamic Shariah whilst at the same time complying with the constitutional dictates of the country. The merits of such an exercise are numerous. It could readily be replicated in other non-Muslim jurisdiction across the world. Nigeria being the largest economy in Africa, the dividends of such an exercise would cascade across the continent consisting mainly so called developing countries.

Bu makale İslam dünyasında vakıfların ortaya çıkısından günümüzdeki en son gelişmelere kadar bu çok önemli kurumun geçirmiş olduğu evreleri incelemektedir. Ayrıca Bati dünyasındaki son durumlar da ele alınmakta ve sonuç olarak vakıfların hem ülkemizde hem de tüm İslam dünyasında ciddi bir reform surecine tabi tutulmaları gereği ortaya çıkmaktadır.

During the early period of the Islamic civilization, the role of the institution of waqf covered almost all service sectors, such as health, education, basic infrastructures, business and commercial activities, job creation, food provision for the hungry and the animals, shelter provision for the poor and needy, in addition to supporting the agricultural and industrial sectors without any cost to the government. However, this role has deteriorated since the beginning of the nineteenth century up to the present time. Such that the situation of all waqf properties is that of idleness, neglect and unproductiveness in almost all Muslim societies. This situation forced individuals, governments and companies to revive this institution. The beginning of the twenty-first century thus witnessed a revival of all Islamic financial institutions, including the institution of waqf.

Waqf is a financial charitable institution established by withholding immovable and movable properties to perpetually spend its revenue on fulfilling public or family needs, depending on the preferences of and conditions set by the founder. Once the property is created as waqf, it can never be given as gift, inherited or sold. It belongs to Allah (swt), and the waqf property always remains intact. Only its generated revenue is channelled to the beneficiaries. The main motivation for a founder to create waqf is clearly stated in both the Quran and the Sunnah.

This chapter addresses a range of topics starting by giving a historical review of the role of waqf in the Muslim society, the status of waqf today, waqf organisations and their contribution to the economy. The chapter also focuses on issues that are relevant for the integration of waqf into the mainstream of the Islamic financial industry. It also addresses matters of concern to regulatory authorities and all stakeholders.

The study at hand showcases classical as well as innovative modes of finance that have been practiced successfully in 11 countries. The cases presented reflect a transformation of old and unproductive waqf properties into modern waqf buildings, which have become not only income-generating properties but also properties having direct impact on the socio economic development of the countries under study.

Recently the development of the old and idle waqf properties has been advanced by individuals, foundations and government in the various Muslim majority as well as Muslim minority countries. By adopting three classical and 11 innovating modes of individual finance, the Islamic Religious Council, Islamic Endowment Corporation, Ministry of Awqaf, Foundations and Trust Foundations have successfully managed to develop the old waqf properties. This development was not only in terms of multiplying their generated revenues but also in terms of coming up with modern waqf buildings, which not only replace the old waqf properties but also have a direct impact on the socio-economic development of the countries examined. The beauty of this new development is in providing many facilities for the masses, at the same time as meeting the founders’ conditions. For example, the newly developed waqf buildings provide many jobs for the people working there, providing shelter for the residents staying in the modern waqf buildings or providing shelter for the visitors staying in waqf hotels. In addition, education has been provided for the majority of the students who are studying in the waqf schools and waqf universities, healthcare has been provided for the majority of people going to waqf clinics and waqf hospitals and many goods and services have been provided through commercial waqf buildings. All these are provided by developing the old waqf buildings, while the generated income from these properties will go direct to the beneficiaries according to the founders’ conditions.

This chapter provides various data on the current law and administration of waqf in Turkey, Malaysia, Singapore, Sudan, Indonesia, Iran, New Zealand, Kuwait, India, Pakistan, and Bangladesh. It also shows the classical and innovative modes of financing the development of waqf properties. Ninety five cases are presented showing how using the 13 classical and innovative modes of finance managed to transform the idle and the unproductive waqf properties into income-generating properties while having impact on the socio economic development of these countries. Among these modes of finance are al-istibdal/substitutions, hikr/long leases, al-istisna‘a/construction financing, Musharakah Mutanaqisah/Diminishing Partnerships, Build-Operate-Transfers (BOTs), Build-Lease-Transfers (BLTs), Joint Ventures, Sukuk al-Musharakah/Partnership Bonds, Musharkah/Partnerships, Internal Funds/Self-Finance/Donations, Waqf Shares, Corporate Waqf and Sukuk al-Musharakah/Partnership Bonds. For the new Waqf Entrepreneurship mode as in the case of Turkey, we believe it is a new mode worth attention and further research.