The ruling on the 'Aqeeqah of the newborn Child

Question :

What is the meaning of the 'Aqeeqah of the newborn child, and is it Fardh (obligatory) or Sunnah (supererogatory)?

Answer:

The 'Aqeeqah of the newborn child is the sacrificial animal that is slaughtered in seeking nearness to Allâh and thanking him for the blessing of the newborn child on the 7th day after its birth. The people of knowledge have differed over whether it is Sunnah or Fardh. Most of the people of knowledge hold the view that it is Sunnat Mu'kkadah (compulsory). Even Imam Ahmad said, "He borrows and performs the 'Aqeeqah sacrifice. Meaning that the person who does not have any money should borrow the money and perform the 'Aqeeqah, and Allâh will take care of his debt for him because he revived a Sunnah." The intent of his statement 'He borrows' is in reference to the person who hopes to be able to repay the debt in the future. In reference to the person who does not think that he will be able to repay the debt in the future, he should not borrow money to perform the 'Aqeeqah. This statement from Imam Ahmad is evidence that it (the 'Aqeeqah) is Sunnnat Mu'kkadah (compulsory), and that is the fact. Therefore, the person should slaughter two sheep for the 'Aqeeqah of a male child and one sheep for the female child, and this should be done on the 7th day. The person eats from it, gives some of it away as a gift and gives some of it in charity. There is no harm if he gives some of it away in charity and gathers his relatives and neighbors to eat from its cooked meat with other food.

Source:
Ash-Shaykh Ibn 'Uthaimin
Fatawa Islamiyah, Vol. 4 Pages 336-337