Islamic Finance and Women Entrepreneurs in Nigeria: Behavioral and Revenue Analysis

Abstract

This study examines how women entrepreneurs in Nigeria use Islamic banking and finance services, and whether these services help them make money and feel satisfied with their business operations. The research uses data from 357 women entrepreneurs across five major cities in Nigeria to understand their behavior and financial performance when using Islamic financial products. The study has two main parts. First, it looks at what makes women satisfied or unhappy with Islamic finance services using logit and probit regression models. Second, it examines what factors help women make more profits from their businesses using Tobit regression analysis. The research collected information about the types of Islamic banks women use, the financial products they choose, how often they use these services, and their business characteristics. The findings show that 68.07% of women entrepreneurs prefer to use only Jaiz Bank, while 27.17% use both Jaiz Bank and Taj Bank together. Mudarabah is the most popular Islamic financial product, used by 55.15% of women, followed by Murabahah at 19.85%. Most women (64.69%) use mobile banking apps that follow Islamic rules, and 68.38% rely on mobile phones and smart devices for their financial activities. The behavioral analysis reveals that women's satisfaction with Islamic finance depends strongly on how many times they use the products. Age also matters, with younger women being more satisfied than older one. Location plays a major role, with women in some cities being much more satisfied than others. The models explain 76.4% of what determines women's satisfaction levels. The revenue analysis shows that Islamic financial products help women make profits, but success varies by several factors. Women who use products more frequently earn about ₦5,905 more in profits. However, switching between different banks reduces profits by about ₦2,929. The average profit made by women entrepreneurs is ₦17,183. The study concludes that Islamic finance can help women entrepreneurs in Nigeria, but success requires regular use of services, staying with trusted banks, and maintaining simple business structures. Location and age are important factors that affect both satisfaction and profits. The research shows that 69.84% of women have made sales through fintech platforms, proving that these services can support business growth. The study provides important information for improving Islamic finance services for women in Nigeria and other developing countries.