Towards Effective Islamic Financial System in Northwestern Nigeria: A Review of Emir Muhammad Dikko’s Baitul-Mal in Katsina, Nigeria

Emirate


Introduction (Cambria, 9.5, bold, align left)
Northwestern Nigeria had been a region mostly dominated by Hausa-Fulani ethnic groups that had long been on the traditional administrative system (Sarauta), that is headed by the king (Sarki) and other traditional lieutenants, which was reformed by Sokoto caliphate Jihadists of 1804 CE. The struggle (Jihad) was organized by Sheikh Uthman bn Foduye to transform the entire system in the region, whose success brought an effective financial system management adopted from the golden Islamic state that initiated Baitul-mal as an institution to manage financial resources under Islamic religious guidance, which extended widely to various states, among which Emir Muhammad Dikko of Katsina emirate managed the resource of his state on its footprint to ensure its benefits to the people, as highlighted in the context of the paper with the hope of reviving effective financial management in northwestern Nigeria. Before the reign of emir Dikko, there were different forms of financial collections ranging from Zakat, ghanimah, Jizyah, land tax (kudin Kasa) among others which were corruptly managed by the emirs. However, the idea of public treasury was brought up after the arrival of the colonial masters in Katsina, which approved 25% of the total revenue collections in the emirate as personnel allowances to the Emir while 40% was for the colonial masters. This 25% and 35% (60%) was kept in the public treasury based on the suggestion of the Emir for general welfare for both the staff in the emirate and community social developmental services. The Baitul-mal was managed by central and local administrators in the emirate. Its impact financially, recorded both educational, religious and social development among people of Katsina generally though there were some challenges faced during the period as highlighted in the paper.

Concept and development of Baitul-Mal
Baitul-mal is regarded by contemporary Islamic financial scholars as a ministry of finance in an organized Islamic community; 1 this historic institution was occupied by reliable managers entrusted with the responsibility of financial procurement through various channels analysed by Shari'ah 2 to gather certain amounts required for the well-being of the community in various dimensions.
The institution was founded from the guidance of Allah (SWT) in the Qur'an for the collection and distribution of some substantial funds known to be pillars of the entire funds meant to care for the welfare of the community, such as: Take Sadaqah (alms) from their wealth in order to purify them and sanctify them with it, and invoke Allah for them. Verily! Your invocations are a source of security for them, and Allah is All-Hearer, All-Knower. 3 2. Booty, And know that whatever of war-booty that you may gain, verily one-fifth (1/5th) of it is assigned to Allah and to the Messenger and to the near relatives [of the Messenger (Muhammad SAW)], (and) the orphans, Al-Masakin (the poor) and the wayfarer, if you have believed in Allah and in that which We sent down to Our slave (Muhammad SAW) on the Day of criterion (between right and wrong), the Day when the two forces met (the battle of Badr) -And Allah is Able to do all things. 4 Fight against those who (1) believe not in Allah, (2) nor in the Last Day, (3) nor forbid that which has been forbidden by Allah and His Messenger (4) and those who acknowledge not the religion of truth (i.e., Islam) among the people of the Scripture (Jews and Christians) until they pay the Jizyah with willing submission and feel themselves subdued. 5 And what Allah gave as booty (Fai') to His Messenger (Muhammad SAW) from them, for which you made no expedition with either cavalry or camelry. However, Allah gives power to His Messengers over whomsoever He wills. In addition, Allah is Able to do all things.
What Allah gave as booty (Fai') to His Messenger (Muhammad SAW) from the people of the townships, -it is for Allah, His Messenger (Muhammad SAW), the kindred (of Messenger Muhammad SAW), the orphans, the poor (Al-Masaakin), and the wayfarer, in order that it may not become a fortune used by the rich among you. In addition, whatsoever the Messenger (Muhammad SAW) gives you, take it, and whatsoever he forbids you, abstain (from it), and fear Allah. Verily, Allah is Severe in punishment. 6 Upon these Prophet, Muhammad (SAW) implemented some elements of the institution by collecting, reserving and distributing its proceeds to the rightful recipients. This institution was earlier stationed at the room of his wives and subsequently at the mosque. 7 Uqbah reported having prayed Asr with the prophet (SAW), after which he quickly returned to the room of one of his wives to pick up reserved alms that he distributed to the people in the mosque 8 (Trans.) Prophet (SAW) assigned managers for the collection and care of such wealth, such as Bilal bin Rabah (R. A) on the zakat of fruits, Abdurrahman ibn Awf (R. A) on the zakat of Animals, Mahmiyyah bn Juzr (R. A) on the fifths of the booty, etc. 9 Caliph Abubakar (RA) came up with great development through the establishment of a house at an area called 'Sunh' 10 , which historically became the first official house of the Baitul Mal 11 for deposition of goods and wealth before distribution to the entitled, even though (it) was later transferred to his house at his return to Medina for safety purposes. He further vowed to apply military power to ensure its sustainability against zakat defaulters who refused to surrender it after the demise of the Prophet (SAW). 12 Baitul-mal attained its golden stage during the reign of caliph Umar bn. al-Khattab 13 , who modernized its activities from the advice of Walid bn Hisham 14 for the extension of its offices to various provinces and localities having different offices and managers rendering different services, such as Abdullahi bn Mas'ud (R. A), Uthman bn Hanif, Hunayy among others. 15 He also prepared a register called "Diwanu al-ata" containing the names of the entire Muslims 7 Such as wealth from Bahrain, that was reserved and distributed in the mosque. 8  arranged in the superior order and according to their tribes and clans, which stated everybody's entitlement from the treasure of the Baitul-mal. 16 The system was upheld by subsequent rulers of the Umayyad and Abbasid dynasties at some certain level from whom the idea was extended to other Muslim states over time. 17

Objectives of the Baitul-Mal
Baitul-mal, as an institution, is being established by the Islamic state to serve as a financial ministry responsible for the achievement of certain goals and objectives for the development of the state as follows: 1. Revenue mobilization: Baitul-mal is aimed at collecting revenue from the rightful source for the development of the state in a rightful manner, which ranged from the collection of Zakat, booty, tribute, tax, fifths of ore and the rest analysed by Shari'ah to be collected by the institution officials 18 . 2. Resource allocation: gathered resources of the institution are being managed and allotted to the deserved recipients for the benefit of all, such as poor people, needy, community developmental services, etc.
As-Sadaqat (here it means Zakat) are only for the poor (Fuqara'), and Al-Masakin (the poor) and those employed to collect (the funds); and for to attract the hearts of those who have been inclined (towards Islam); and to free the captives; and for those in 16  Looking at the above objectives of Baitul-mal, it is enough to justify that there is a need to represent its effective work for the socioeconomic development of the Ummah during the golden Islamic period and later generations.

The Relevance of Baitul-Mal in The Early Islamic Period
Bailtul-mal was of great relevance to the early Islamic period for its role in the sustainable services of the states. republic, Sudan and others within the West African region, comprising approximately thirty emirates 32 , as stated: "By the middle of the nineteenth (19 th ) century, there were thirty (30) emirates, and the capital district was Sokoto". 33 The administrative trend of the caliphate was traced from the guidance of Islam, as sultans are being appointed to rule the state under the directives of Islam to ensure justice and care for the well-being of their subjects through various economic policies that led to the emulation of the earliest public treasury of Arabia.
Sokoto caliphate adopted the trend of Baitul-mal from the reign of the four (4) rightly guided caliphs of Islam for the procurement of resources to finance the administration and ensure public welfare of its citizens through the establishment of its offices in the coalition of the various emirates under its control to serve the nearest subjects of the emirates. 34 In essence, each and every office of the Baitul-mal has to source funds for its emirate on the designated sources viz: Fifth of booty, Zakat, Land tax, Tithe (Ushur), lost but found properties of the nontraceable owners, Customs duties, Levy (on some occasional bases), etc., as stated: These are the fifth, the tithe, poll tax, land tax, booty and surplus, the property whose owner is missing, and the property which is owner less. All these were regarded as forming the public treasury. " 35 The gathered resources are being utilized to settle the expenses of the emirate on the salary of the soldiers, allowances of the judges, Imams and Muezzins and other public officials, building of mosques and bridges, fortification of the cities against raiders, 36 etc.
The way of just Imams concerning booty and the one-fifth is that a beginning should be made by sealing off the dangerous places and the frontiers and by making ready of weapons of war and the pay of the soldiers. If anything is left over, it should go to 32 Such as Kebbi, Kano, Katsina, Zazzau (Zaria), Bauchi, Ilorin, Nupe and Muri etc. 33  the judges and the provincial governors and the building of mosques and bridges. Then, it should be divided among the poor, and if there is any leftover, then the Imam should choose between dividing it among the rich and keeping it against disasters 37 Each and every state relied on its fund to cater for its expenses, as no directive was given to mandate Emirates for the disbursement of any percentage to the caliphate apart from the tribute. 38 This helped some Emirates build a solid foundation of their economic strength that lasted even after the downfall of the caliphate, such as Katsina, among others.

The reign of Emir Muhammad Dikko
Muhammadu Dikko, the third child of Durbi Muhammadu Gidado and Ta-malamai, was born in 1865 C. E 39 at Kofar Sauri quarters of Katsina town 40 but was brought up in the house of his uncle Durbi Sada, who cared for his education and moral upbringing, which he acquired thorough knowledge of the Qur'an and other Islamic sciences. 41 This aid him in setting a remarkable spot on Islamic finance within northern Nigeria.
He married the daughter of Emir Abubakar 42 at the age of seventeen 43 and was given several concubines 44 through whom he bears several children, such as Muhammadu Gidado, Usman and the rest. Muhmmdu Dikko was involved in the administrative circle as he held various offices before his emir ship as pointed out: Before becoming the Emir, he was turbaned as Karshi, Kankia and Durbi when his Uncle Durbi Muhammadu sada died. 45 This made him most influential of the Gidado's children; unfortunately, he met up with so much envy and rivalry that mounted up serious instigation to emir Abubakar, who finally forced Dikko to migrate to Daga, where he met up his able vizier (Waziri Haruna) and had not returned until the arrival of colonial masters, 46 when he was summoned to reunite with the emirate for defense to the territory. However, Dikko suggested a peaceful 37 Ibid, p.124. 38 76 6. Baitul-Mal limits the power and control of the colonial masters on the financial resources and revenue of the emirate, as only 40% is being given to the colonial government while the remaining is going to the Baitul-Mal. 77 7. Community developmental services: The emirate council relied on the Baitul-Mal to source for money required for the developmental services to its citizens. Among the projects executed by the council were building of the central mosque opposite to the emir's palace 78 , hospitals, schools, etc. 8. Security and defense to the community; security forces 79 of the community had been advanced and supported from the fund of the Baitul-mal to depend the territory from the invasion of other emirates and crime control within the community.
5. The transfer of power from the traditional rulers