An Investigation into Knowledge, Acceptance and Adoption of Islamic Finance Principles among Women Entrepreneurs in Southwest Nigeria

Abstract

The swift growth of Islamic banking and finance in Nigeria has not resulted in substantial penetration among women-owned enterprises. The current study investigates the gap between intention and actual usage of Islamic finance among women entrepreneurs in a demographic region of the country. Using an institutional-behavioral framework, combined with the Theory of Planned Behavior and level of structural accessibility, the study surveys 120 women-owned micro and small enterprises in the Southwestern region of Nigeria. The study uses Ordinary Least Squares and logistic regression to assess intention-adopt and actual participation in financing women-owned businesses. The findings reveal a disconnect between intention and actual participation. Rather than mere awareness or intention, structural factors play a big role in the process. The study, thus, highlights the need for institutional access and equitable services to enhance Islamic financial operations within emerging dual banking systems in Nigeria.