The determinants of intention to accept Islamic finance products in Nigeria : the moderating effects of financial inclusion

This study examined the level of intention to accept Islamic Finance Products (IFPs) in Nigeria and the moderating effects of financial inclusion on the relationship between attitude towards IFPs, subjective norms, perceived behavioural control, knowledge of IFPs, perceived benefit, perceived government support, religious obligation, service quality, gender, ethnicity and intention to accept IFPs. The quantitative study used the cross-sectional method to collect 357 samples using closed ended questionnaires. The data was analysed using the Partial Least Squares Structural Equation Modelling (PLS-SEM). The Theory of Planned Behaviour (TPB) was adopted as the underlying theory to test 21 postulated hypotheses. The results show a high intention towards accepting IFPs. Similarly, 14 hypotheses (67%) are supported, out of which attitude towards IFPs, perceived behavioural control, knowledge of IFPs, perceived government support, religious obligation, gender, and ethnicity show significant direct relationships with intention to accept IFPs while subjective norms, perceived benefit and service quality are not significant. The results show that financial inclusion can moderate the relationship between attitude towards IFPs, subjective norms, perceived government support, religious obligation, service quality, gender and intention to accept IFPs, compared to perceived behavioural control, knowledge of IFPs, perceived benefit and ethnicity which are not significant. The results also show that the variables in the study address 74.5% of the needed determinants (R-Squared=74.5%) with a large effect size and predictive relevance of 38.04% and 42.57% respectively. Consequently, the study recommends that the government and its development partners should institutionalise the low cost IFPs such as Qardhul Hassan for the less privileged Muslims and strengthen Islamic Microfinance (IsMF) institutions. The government‟ s emphasis should be on those regions suffering from high rates of financial exclusion in order to achieve its target of reducing the current financial exclusion rate of 41.6% to 20% by 2020

Enhancing socio-economic justice and financial inclusion in Nigeria: The role of Zakat, Sadaqah and qadrul hassan

Purpose – The purpose of this paper is to discuss the roles of Zakat, Sadaqah and Qardhul Hassan within the context of the existing literature as major Islamic financial instruments for enhancing socio-economic justice amongst Muslims haves and have-nots as these enhance financial inclusion in Nigeria. Design/methodology/approach – The discussion in this paper is based on secondary sources such as the divine knowledge contained in the Qur’an, Hadiths and the existing literature, such as previously conducted empirical studies and Islamic world view (Tawhidi epistemology). Findings – This paper implores Islamic societies to use Zakat, Sadaqah and Qardhul Hassan as instruments that encourages wealth redistribution that promotes efficient and effective wealth redistribution between haves and have-nots as part of the vicegerent (khaliphah) role between mortal being (human) and his immortal creator (Allah). This paper concludes by suggesting the use of these Islamic financial instruments as means to enhance socio-economic justice and financial inclusion in the Nigeria’s Muslims’ communities that are negatively affected by the high rate of financial exclusion and poverty as had been previously practiced in the Muslim world throughout the Islamic history. Research limitations/implications – This paper provides critical suggestions on the ways Zakat, Sadaqah and Qardhul Hassan will contribute significantly towards assisting Nigeria in achieving its vision of reducing the financial exclusion rate that is currently put at 41.6% to 20% by the year 2020 and may foster inclusive growth and sustainable development. However, the limitation is that it is a mare conceptual study, and the future researchers may subject it to the scientific test to offer empirical evidence regarding the roles of Zakat, Sadaqah and Qardhul Hassan towards closing the gap of financial exclusion in Nigeria. Originality/value – This paper contributes to the existing literature on the doctrine of the Islamic moral economy by recommending the adoption of Islamic financial instruments as tools for enhancing income redistribution and financial inclusion

The Moderating Effects of Financial Inclusion on Qardhul Hassan Financing Acceptance in Nigeria: A Proposed Framework

This paper, which is conceptual in nature, discusses the moderating effects of the relationship between several factors that may affect the acceptance of Qardhul Hassan financing in Nigeria. The proposed variables under examination are attitude towards Qardhul Hassan financing, knowledge of Qardhul Hassan financing, perceived benefits, perceived government support and religious obligations while financial inclusion serves as a moderator variable. If validated, the work would be used as a proposed financing model to the government, policy makers, regulators, practitioners and other stakeholder's vis-à-vis curbing the adverse effects of financial exclusion in various jurisdictions of the emerging markets. Keywords: Qardhul Hassan, Financial Inclusion, Islamic Finance JEL Classifications: D14, G2

Integration of waqf towards enhancing financial inclusion and socio-economic justice in Nigeria

Purpose – This paper aims to discuss the role of Waqf as a means of enhancing financial inclusion and socio-economic justice in Nigeria. Design/methodology/approach – The methodology in this paper is that the data were elicited from secondary sources such as the Al-Qur’an, Hadiths and other empirical studies in the existing literature. The Tawhidi epistemology (Islamic world view) also has been obtained to deliver better understanding on the findings. Findings – The paper implores Islamic societies to take advantages of integrating Waqf to support the financing needs of disadvantaged members of the Muslims communities, especially the Muslims, dominated northern Nigeria with a high level of financial exclusion. The Waqf funds if integrated and institutionalized will support the region by making the fewer privilege members of that community-engaged thereby economically and enhancing the financial inclusion. This will also lead to economic growth and socioeconomic development of Nigeria. Practical implications – The paper concludes by suggesting the establishment of Waqf funds to supports the less privileged people through Islamic Microfinance as means of enhancing socio-economic justice in Nigeria’s Muslims’ communities, which is negatively affected by the high rate of financial exclusion and poverty. This paper also provides critical suggestions on the ways the integration of Waqf funds will contribute significantly towards assisting Nigeria in achieving its vision of reducing the financial exclusion rate and may foster inclusive growth and sustainable development. Originality/value – This paper is a conceptual study and, therefore, limited to the content of the existing literature. Hence, the future researchers may replicate and test it empirically for a more scientific justification regarding the roles of Waqf towards enhancing financial inclusion in Nigeria