Faith‐based model as a policy response to the actualisation of the millennium development goals in Nigeria

Purpose The purpose of this paper is to examine the appropriateness of faith‐based model (FBM) as a veritable policy response to the issue of poverty alleviation and actualisation of the millennium development goals (MDGs) in Nigeria. Design/methodology/approach The paper combined qualitative and quantitative date to validate the appropriateness of FBM, to tackling poverty issues in Nigeria. The first section presents a brief introduction on poverty issue in Nigeria. The second section outlines the theoretical and methological approaches adopted in the paper. The third section casts a cursory look at the conceptualisation of poverty in the literature. The fourth section explores poverty‐eradication efforts in Nigeria. The fifth section highlights the failure of previous poverty reduction strategies (PRS) in Nigeria. The sixth section presents a background to MDGs. The seventh section show‐cases application of Islamic economics models (faith‐based model and business system model (BSM)) to MDGs. The eighth section is devoted to data projections, analysis and interpretation. The final section concludes with policy prescriptions. Findings On the basis of projection which is hinged on Shari'ah assumptions (minimum zakatable wealth and 2.5 per cent Zakat rate), the paper shows that Zakat and Sadaqat collections from year 2009 to 2015 would amount to N357,038 billions and N31 billion, respectively. These funds would go a long way in helping to alleviate poverty and actualisation of MDGs in Nigeria. Practical implications The faith‐based poverty reduction strategy enriched by BSM as conceptualised in this study can be used to eradicate extreme poverty and hunger (MDG 1), achieve universal primary education (MDG 2), promote gender equality and empower women (MDG 3), reduce child mortality (MDG 4), improve maternal health (MDG 5), combat, HIV/AIDS, malaria and other diseases (MDGs 6), ensure environmental sustainability (MDG 7) and develop a global partnership for development (MDG 8). Originality/value The results of this paper support the Islamic economics view that Zakat and Sadaqat are viable fiscal mechanisms for poverty alleviation where adopted. The FBM as conceptualised in this paper would therefore complement and pose a positive challenge to contemporary PRS in use in many poverty‐ridden nations where economic indicators have justified prevalence of poverty, despite the various PRS put in place by policy makers.