Exploring the level of Awareness, Understanding and Willingness of Non-Muslims in Patronizing Islamic Banking in Nigeria

Abstract

The study explored the level of awareness, understanding and willingness to patronize Islamic banking products and services among non-Muslims in Nigeria. The study adopted purposive sampling technique while primary data were collected using structured questionnaire to elicit information from 65 respondents who are customers of conventional banks that have branches in the University of Benin. Data was analyzed using descriptive analysis (simple percentage). The results show that 67.7% of the respondents were not aware of the existence of Islamic banking in Nigeria. Findings from the study also showed that majority of the respondents have little or no understanding about Islamic banking system and operation. Furthermore, the willingness level of using Islamic banking products and services is low among the non-Muslim. Furthermore, one of the demographic variables considered in the study (i.e., age) significantly affects the respondents’ level of awareness regarding Islamic banking products and services. The study recommended among others that religious bodies should take part in the campaign to clear the various misconceptions and fears of the non-Muslims regarding Islamic banking in Nigeria. Also, more publication on Islamic banking subject should be made publicly available in order to raise the level of understanding and awareness as well as to improve their knowledge regardless of age and level of education amongst Non-Muslims on Islamic banking concept and operations.