Waqf as a wealth redistribution institution in Islam has immensely promoted the sustainable development of the hitherto Muslim world. It was thus described as the engine room of development until it assets were frozen by the colonialist. African countries and especially Nigeria suffer from poverty, civil strife, and insecurity that constitute a hurdle to the sustainable development of the continent. This article through doctrinal research observes that the waqf institution if effectively harnessed, immensely contributes to overcoming poverty upon which insecurity and civil strife thrive. This work notes that the government of Nigeria and most particularly the northern states’ government have not given the waqf institution the desired legal environment for its effective functioning. Indeed Nigerian Muslims rarely understood the significance of the waqf institution beyond the building and management of the Mosque due to lack of enlightenment. This work observes that having regard to the developmental contributions of waqf if given the legal impetus it desires to grow, it has the prospects of promoting sustainable economic development of Nigeria whose population faces acute problems of poverty. This work concludes that while Islamic scholars bear the responsibility of enlightening Muslims on the benefits and prospects of the institution in solving poverty-related issues and promoting sustainable development, governments particularly of the northern states of Nigeria should promulgate laws that give the institution legal backing for its efficient management.