NIGERIA: NISAB FOR THE PERIOD ENDING 1st RAMADAN

NIGERIA: NISAB FOR THE PERIOD ENDING 1^st RAMADAN

1.    Zakkah Nisab (Gold):N1,704,880

2.    Haddin sata/ Sadaki/ Dowry/ Theft: N21,311

3.    Diyyar rai / Blood Money: N85,224,000

 Source: Islamic timing and research org. [08033140010 or 07032558231]

HOW TO WORK OUT ZAKAT?

Giving Zakat is obligatory for all eligible Muslims and is based on the current Nisab values. 

These can vary year to year, which makes knowing how much to pay quite difficult. To simplify the rules around paying zakat, use the Nisab values for any year (1441/2020) below then enter your personal values into the calculator to determine your zakat contribution.

HOW MUCH IS NISAB FOR ZAKAT 1441/2020

(Silver) 612.36g equating to £238.82 (Calculate Naira equivalent)

(Gold) 87.48g equating to £3,753.77 (Calculate Naira equivalent)

Zakat 1441/2020 (NIGERIAN Naira equivalent)

NISAB VALUE: 

(Silver) 612.36g equating to £238.82 (Calculate Naira equivalent)

(Gold) 87.48g equating to £3753.77 (Calculate Naira equivalent)

BASE NISAB VALUE OF:

1.    Silver 

2.    Silver Gold 

Enter all assets that have been in your possession over a lunar year:

1.    Value of Gold NXXX

2.    Value of Silver NXXX

CASH:

3.    In hand and in bank accounts NXXXX

4.    Deposited for some future purpose, e.g. Hajj, marriage/wedding, purchase of car/house NXXXX

5.    Given out in loans NXXXX

6.    Business investments, rent income, shares, saving certificates, pensions funded by money in one’s possession NXXXX

TRADE GOODS:

7.    Value of Stock NXXX

LESS LIABILITIES:

8.    Borrowed money, goods bought on credit NXXX

9.    Wages due to employees NXXX

10. Taxes, rent, utility bills due immediately NXXX

Now CALCULATE

RESET

Total Assets NYYY

Zakat Payable NZZZ

DONATE ZAKAT in accordance with chapter 9.60 of the Hoy Quran

WHAT IS THE MEANING OF ZAKAT?

One of the Five Pillars of Islam, Zakat is a fundamental part of being a Muslim. Meaning purification, Zakat is the act of giving a set percentage of your total wealth to charity each lunar year and is required of every sane, adult Muslim whose accumulated wealth exceeds the current Zakat Nisab value.

Zakat is so much more than just giving to those in need; paying Zakat is an act of worship. At Muslim thinking, we understand this wholeheartedly, which is why we strive to ensure that your Zakat payment reaches the most vulnerable and needy communities in the world, quickly and effectively.

Considering all the different items and details that must be kept in mind when calculating Zakat, understanding the Zakat Nisab value, when to pay Zakat and who we can give it to, the whole process can be complicated.

WHAT IS NISAB?

Firstly - what is the Nisab threshold?

The Zakat Nisab value is the minimum threshold required for an individual to be eligible to pay Zakat in that specific lunar year. Your total overall wealth must meet or exceed the Nisab value in order for you to be eligible to pay Zakat. In Nigeria, Ramadan 1441; Zakkah Nisab (Gold):N1,704,880

What is the Nisab value? The most up to date Nisab for gold and silver can be found at the top of the article.

The Nisab value is directly related to the current values of gold and silver. In the Holy Qur’an, the Nisab value is described as 612.36g of silver or 87.48g of gold (Calculate Naira equivalent). Originally, these values of silver and gold were equal but in the current day, they have become different, with the silver Nisab being significantly lower than its gold counterpart.

You can calculate the Nisab value at any given time by converting these weights into your local currency.

WHAT IS THE ZAKAT PERCENTAGE?

Your Zakat donation should amount to 2.5% of your total wealth accumulated over the year. 

As an example, if your total assets (after any debts owed) amounted to N1,704,880 then you would be required to pay N42,622 as Zakat.

What is Zakat Due On?

When calculating your total wealth and assets, you must consider the following:

1.    The value of gold and silver items owned

2.    Money in your bank accounts or in cash at home

3.    Loans that you have given out

4.    Pensions, stocks, shares and investments

5.    Property owned as an investment (excluding the property you live in)

6.    Farm and agricultural produce

Please note that any debts you currently have outstanding, including any form of loan, are ineligible for Zakat so they must be deducted from the overall total.

ZAKAT RULES ON TAX

In the OTHER COUNTRIES tax can impact Zakat in a variety of different ways but there are Zakat rules to help guide you should you have any queries. Make reference to Malaysia, Pakistan etc.

For most, personal taxes like road and income tax are not exempt from Zakat. The only exception to this is when the taxes being paid are overdue, in which case they become a debt which is deductible, though this is a rare situation.

For some, especially business owners, filling in tax returns is an important part of being self-employed. In this situation, many individuals will keep money in their bank specifically for when they fill in their tax returns. This figure being saved for tax is deductible from the Zakat total.

PAYING YOUR ZAKAT

Hopefully, you will now know exactly how much Zakat to pay, and you are ready to make your payment. 

As an obligatory act of worship, your payment should go towards helping Zakat-eligible individuals, as decreed by the Prophet Muhammad (Sallalhu alaihi Wasalam).

When to pay Zakat? Zakat is typically based on a full lunar year, and as such, most Muslims pay this towards the end of the year i.e. 1^st Muharam, etc. While this can be paid at any time, many choose to pay Zakat during Ramadan.

Who can we give Zakat to? Zakat payments are divided between those most in need, as determined by the Holy Qur’an chapter 9.60:

إِنَّمَا ٱلصَّدَقَـٰتُ لِلۡفُقَرَآءِ وَٱلۡمَسَـٰكِينِ وَٱلۡعَـٰمِلِينَ عَلَيۡہَا وَٱلۡمُؤَلَّفَةِ قُلُوبُہُمۡ وَفِى ٱلرِّقَابِ وَٱلۡغَـٰرِمِينَ وَفِى سَبِيلِ ٱللَّهِ وَٱبۡنِ ٱلسَّبِيلِ‌ۖ فَرِيضَةً۬ مِّنَ ٱللَّهِ‌ۗ وَٱللَّهُ عَلِيمٌ حَڪِيمٌ۬ (٦٠)

(Holy Quran Chapter 9 Verse 60) Alms are for the poor and the needy, and those employed to administer the (funds); for those whose hearts have been (recently) reconciled (to Truth); for those in bondage and in debt; in the cause of Allah; and for the wayfarer: (thus is it) ordained by Allah and Allah is full of knowledge and wisdom.

1)    The poor

2)    The needy

3)    Travellers in need

4)    Those in debt

5)    Those being held against their will or in slavery

6)    New Muslims and friends of the Islamic community

7)    Those in the cause of Allah

8)    Administrators of Zakat