Sultanate Council moves to establish Islamic Microfinance Bank

The Sultanate Council has disclosed plans to establish the Caliphate Islamic Microfinance Bank to combat poverty and create employment opportunities across Nigeria.

The proposed Caliphate Islamic Microfinance Bank aims to combat poverty, create employment, and promote sustainable livelihoods across the West African sub-region.

The Sultan of Sokoto, Alhaji Sa’ad Abubakar, announced the development on Sunday during the opening of a three-day capacity-building programme on Baitul Mal wat Tamweel (BMT) held in Sokoto State.

The training was organised by the Islamic Development Bank (IsDB) and the Sokoto State Zakat and Endowment Agency.

Represented by the District Head of Kilgore, Alhaji Jabbi Kilgore, the Sultan revealed that the proposed financial scheme has reached an advanced operational stage, stressing that both local and international investors have shown interest in partnering with the developmental project.

“The aim is to establish a bank that will serve as a model not only for Nigeria but also for the West African sub-region”, Sultan.

The Sultan described the collaboration between the IsDB and the Sokoto State Zakat and Endowment Agency as a major step toward poverty eradication.

He charged participants and resource persons to ensure the capacity-building sessions translate into practical measures. These measures, he stated, must directly improve the welfare of vulnerable citizens and strengthen existing poverty alleviation programmes.

Addressing the gathering, the Chairman of the Sokoto State Zakat and Endowment Agency, Malam Lawal Maidoki, urged stakeholders to engineer a structural shift away from excessive dependence on Zakat and other charitable assistance. He advocated for productive economic activities that would enable beneficiaries to achieve self-reliance.

Maidoki explained that the BMT model merges social welfare with sustainable economic development. He added that the system provides relief to vulnerable populations while equipping them with the resources required to build sustainable livelihoods.

“In many communities, Zakat and other charitable resources provide essential relief, but relief alone may not create a clear, supported pathway from vulnerability to sustainable livelihoods,” Maidoki argued.

He added that conventional microfinance options remain largely inaccessible or unsuitable for citizens who cannot meet the conditions or who specifically seek Shariah-compliant financial frameworks.

The Chairman also explained that BMT mobilises and distributes social funds, including Zakat, Sadaqah, and Waqf, to eligible individuals. He stated that the model supports productive ventures through tailored business development services and Shariah-compliant financial products.

According to him, this approach will strengthen poverty reduction efforts by linking social protection with economic empowerment, giving vulnerable households a genuine opportunity to secure financial independence.

Earlier in the session, an Indonesian social activist and Islamic finance expert, Saat Suharto, spoke on the structural integrity of the programme. He stated that the scheme was designed to build the capacity of stakeholders to apply BMT principles in an inclusive, locally appropriate, and accountable manner.

Suharto emphasised that the model targets the poorest individuals, helping them develop sustainable livelihoods until they become financially capable of contributing Zakat themselves.

He revealed that the training programme has successfully identified the need to strengthen Zakat and Waqf administration across the board.