Zakat on Digital Assets in Nigeria: Jurisprudential Applicability, Institutional Challenges, and a Framework for Digital Administration

Abstract

This study examines the challenges of administering and collecting Zakat on digital assets in Nigeria, evaluates the adaptability of classical Zakat principles, identifies institutional and technological constraints, and proposes an effective framework for improved compliance. The report focuses on the use of digital assets in Nigeria's growing financial landscape. A mixed-methods survey combines doctrinal/legal analysis with a quantitative survey, using structured questionnaires analysed in IBM SPSS and SmartPLS to test relationships among key variables. The results show that classical principles of Zakat can be applied to digital assets, but several factors make implementation difficult in practice, including institutional inefficiencies, regulatory gaps, and technological limitations. In addition, the study shows that a digitally integrated, regulatory-supported system can improve the efficiency and compliance of Zakat collection. The practical implication is that both policymakers and religious authorities need to focus on digital innovation and regulatory clarity to modernise Zakat systems. This study is significant because it contributes to emerging discourse on Islamic finance in the digital age and provides empirical evidence that may support reform in Nigeria.