Awareness and Willingness to Patronize Islamic Banking among Non – Muslims in Nigeria

Abstract

In Nigeria, particularly in the south, there is a misperception that Islamic banking is just for Muslims, which discourages people from accepting it as an alternative or even just another kind of banking. Jaiz Bank has a small number of branches in the southern half of the nation, perhaps as a result of misconceptions about Islamic Banking held by both Muslims and non-Muslims. The main principles of Islamic banking may not be understood by people, preventing them from opening accounts with Islamic financial institutions. Based on these considerations, the purpose of this study is to investigate the amount of awareness and interest in Islamic banking among non-Muslims in Nigeria. Using a structured questionnaire and selective selection, primary data were gathered from 60 participants (respondents) who are clients of traditional banks with branches at the University of Benin. Descriptive analysis was used to examine the data (simple percentage). According to the findings, 61.7% of those surveyed were aware that Islamic banking exists in Nigeria. The majority of respondents to the research had little to no understanding about products and services of Islamic banking, according to study findings. Furthermore, among non-Muslims, there is less enthusiasm to use products and services of Islamic banking. The study so suggests, among other things, that Jaiz Bank work with religious organizations and schools in their product promotion to dispel the many misunderstandings and anxieties of non-Muslims regarding Islamic banking in Nigeria.