ZAKAT, TAX COMPLIANCE AND POVERTY ALLEVIATION IN NIGERIA: CHALLENGES AND POTENTIAL SYNERGIES

Abstract

Eradication of extreme poverty is the number one goal of Millennium Development Goals (MDGs). Poverty is a multidimensional economic phenomenon that has both political and social ramifications whereas Islam, being a religion of balance, views poverty as social and ideological problems. Conventional fiscal policy (tax) and Islamic fiscal policy (zakat) play an important role in improving the country's economic objectives toward economic growth, wealth distribution and price stability alongside eradicating poverty in a country. Therefore, this paper explores the conceptual review on the role of zakat and tax compliance in an attempt to eradicate poverty specifically in Nigeria. The study also highlighted challenges, synergies and pathways to enhance compliance in Nigeria.