The influence of Murabaha and Ijara on Financial Inclusion in Kano, Nigeria: A Study of Jaiz Bank Plc
Ahmed Audu Maiyaki (Ph.D) 1 , Rabiu Aliyu2 & Hamisu Idris3
1Department of Business Administration and Entrepreneurship Studies, Bayero University, Kano
2 Centre for Entrepreneurship Development, Taraba State University, Jalingo, Taraba
3Department of Business Administration, Taraba State University, Jalingo, Taraba
Corresponding author:
Email: aamaiyakiy@gmail.com, rabiu2040@yahoo.co.uk
ABSTRACTJaiz Bank was recently introduced in Nigeria, before its introduction many people, especially the northern Muslims were not banking with the conventional banking system because of their detestation to interest based financial products and services and this led to the exclusion of huge amount of money outside the formal financial system. This study therefore, investigated the contributions of Islamic financial products on financial inclusion in Kano State. The study uses a sample of 378 customers of Jaiz bank in Kano. This meant that 378 copies of the questionnaire were administered to solicit responses from the customers of Jaiz bank on the contributions of Islamic financial products on financial inclusion. The scales used for measuring Ijara Financial inclusion and Murabahawere adopted from multiple sources, data were analyzed using multiple regressions. It was found that two independent variables namely; Ijara, and Murabaha had significant contributions on financial inclusion; it is therefore recommended that Jaiz bank should make the repayment period to be according to customers’ needs. It is also recommended that government should ensure costumer protection, a supervisory framework for Islamic finance and Islamic financial education be introduced at different levels of education i.e. primary to tertiary level, as all these could be helpful in encouraging Nigerians to use Shari’ah-compliant financial products and services
