The primary motive of Zakat is religious and spiritual, while the social and economic aspects are subservient to it.
Its social significance is that it awakens in man the sense of brotherhood in his community & beyond and stirs his moral conscience to make sacrifice for their sake.
From the economic point of view it discourages hoarding and concentration of wealth and helps its steady and constant flow from the rich to the poor. It is in fact a good means of providing purchasing power to the poor, for ameliorating their hard lot and enabling them to stand on their own legs.
The minimum standard of surplus wealth over which Zakat is charged is known as Nisab in the Shari’ah.
Zakat Nisab is the minimum amount (net worth) that a Muslim must own for Zakat to be due after one Islamic year.
According to the Islamic Law, there’s Zakat in these four categories;
2. Gold and Silver
3. Animals that graze freely (naturally or artificially) ; Camel, Cattle, Sheep, Cow and Goat.
4. Crops that grow from the earth (naturally or artificially irrigated).
NOTE: Each of the aforementioned categories has its Nisab. The Nisab for Gold is 85g and Silver is 595g (the weight of the Gold and Silver). The nisab of cash is the same as that of gold and silver. And it’s 2.5% (1/40) of the net worth.
According to the National Moonsighting Committee, Nigeria as at 25th, Ramadan 1442A.H which is equivalent to 7th of May, 2021, the equivalent of the Nisab in Nigeria Currency for Gold is N1,891,840.
N1,891,840 ➡️ N47,246
N 2m ➡️ N50,000
N 3m ➡️ N75,000
As for Silver, the present nisab is #129,376.41
N130K ➡️ N3.3K
N200K ➡️ N5K
N500K ➡️ N12.5K
N1m ➡️ N25K
⛔ Note: For Zakaat to be valid, there are 3 main conditions;
1. Nisab: The Nisab must be met such that if someone has less than the Nisab, he is not eligible for Zakaat but should instead be giving charity (Sodaqoh).
2. The money must be stable for a year (Hijri) round without the owner having the need for it whatsoever.
3. The Ownership of the money must be within the total control of the owner and within his reach.
The above calculations are made on the present values and rates of other currencies to Nigerian Naira. Therefore, it may be subjected to review in due course
And Allah knows best!