Reducing financial exclusion and enhancing contribution of non-interest (Islamic) banks in Nigeria

Sabi Abdullah, Ismailai and Sharofiddin, Ashurov and Salina, Kassim (2024) Reducing financial exclusion and enhancing contribution of non-interest (Islamic) banks in Nigeria. International Journal of Economics, Management and Accounting, 32 (1). pp. 51-68. ISSN 1394-7680 E-ISSN 2462-1420

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Abstract

Financial exclusion denies people access to useful and affordable financial products and services including transactions, payment, savings, credit, and insurance. Thus, Nigeria launched its National Financial Inclusion Strategy in October 2012 to reduce financial exclusion to 20.0% by end 2020 from 46.3% in 2010; and the licensed Islāmic banks are stakeholders in this declaration. Thus, the study adopts an exploratory approach to discuss the contribution of Non-Interest (Islāmic) Banks in achieving the set target from the supply-side. The study found that Islāmic banks in Nigeria have contributed to reducing the exclusion rate from the supply-side to 35.9% in 2020 by financing customer centric Shari’ah compliant products; growth in branch network and other touch points; agent banking operations; and participation in the Central Bank of Nigeria non-interest intervention schemes. The study recommends the spread of their financial touch points to the unbanked rural populace in other states; while it encourages the government, the Central Bank of Nigeria, and all other stakeholders to sustain efforts in reducing financial exclusion.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Financial inclusion strategy, Islāmic banks, Financial exclusion, Supply-side analysis, Nigeria
Subjects:	H Social Sciences > HG Finance H Social Sciences > HG Finance > HG1501 Banking H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance H Social Sciences > HG Finance > HG4301 Trust services
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr Sharofiddin Ashurov
Date Deposited:	15 Jul 2026 17:42
Last Update:	15 Jul 2026 17:42
Queue Number:	2026-07-Q3999
URI:	http://irep.iium.edu.my/id/eprint/129833

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