Examination of the Determinants of Customers Perception on Islamic Financing in Nigeria

Abstract

The aim of this study is to examine the determinants of customers perception on Islamic Financing in Nigeria. This is because Nigeria is one of the emerging and vibrant market in African. It assessed the relationship between religious obligation, quality of services and product, government support, and social influence on the level of customer perception on Islamic finance in Nigeria. A field survey was conducted and samples drawn using non-probability convenience sampling technique. Out of the 100 questionnaires distributed by hand, only 94 were returned which were analyzed using PLS SEM. The study found three determinants to be significant in influencing the perception of customer on Islamic financing, these are government support, religious obligation and social influence while quality of service and product was found to be insignificant predictors. The implication of this study is to extend the literature by providing insights into the subject matter in emerging markets in which Nigeria is one in Africa. It will also have an impact on customer decision to patronize Islamic financing. The study contributed to the Nigerian government as a means of educating the customers’ particularly potential customer in making financing and investing decision with respect to Islamic mode of finance, also to the regulatory body and the policy makers such as Central Bank of Nigeria in policy formulation by supporting Islamic financial institution and in addition to the academia. The limitation of the study is that of its narrow focus with respect to the population, sample size and area of covered which may hindered its being generalized. 

Keywords: Nigeria, Perception, Islamic Financing, Social Influence, Government Support, Quality of Services and Product, Religious Obligation, Partial Least Squares- Structural Equation Modeling

Paper Type: Seminar Paper