Challenges facing the Acceptability of Islamic Banking in Nigeria

Abstract

This study investigates the challenges facing the acceptability of Islamic Banking in Nigeria, focusing on the three cities where Jaiz Bank was first established, which are Abuja, Kaduna and Kano cities. Data were obtained using questionnaire. Simple random sample was used in administering the questionnaire to 40, 32, 36 participants in the selected cities. Furthermore, systematic sampling was applied so as to free the research from being bias in whatever way possible. The data obtained were analysed using simple percentage, and chi-square was used in testing the hypothesis. Responses were obtained from both Muslims and non Muslims with 81.5% of the respondents having interest in Islamic Banking. Most of the respondents believe that changing the name to Interest free banking will be more attractive. The study reveals that 98.1% of the respondents are aware of Islamic Banking but only 35.2% are familiar with the products and
services provided by Islamic bank. The study, therefore, suggest that Jaiz Bank needs to focus more on marketing and promotions of Islamic banking products and services so as to create more awareness among the potential customers.