As financial inclusion becomes increasingly important – particularly for women often impoverished in many countries – this study aims to examine a specific tool for promoting financial inclusion: Islamic microfinance (IsMF). It explores the regulatory and operational dynamics of Islamic finance institutions in Nigeria and examines the role of women as stakeholders in this process.
The study uses a qualitative analysis. Semi-structured interviews were conducted, and responses were analysed via the content analysis technique.
The findings of this study prove to be relevant to both the literature and the practice of IsMF, especially in Nigeria. The findings reveal several regulatory challenges that existing institutions face, specifically sufficient capital and an absence of a favourable environment. In addition, while there is a notable emphasis on women’s involvement within IsMFIs, female entrepreneurs still encounter barriers to accessing their services.
The limitations of this study are due to its qualitative nature, which takes into consideration a limited number of responses.
The findings provide suggestions on how both policymakers and industry practitioners can enhance their services/policies to better increase the participation of women in IsMF.
Improving women’s participation in finance has implications in promoting their economic and social development and empowerment.
While IsMF has been explored in various global contexts, much of the existing literature focuses on regions like South and Southeast Asia. Fewer studies have addressed this issue within the African context, and even fewer comprehensively analyse the role of women in these institutions. In addition, studies on IsMF in Nigeria have not explored all existing institutions, leaving a gap in the understanding of the full landscape.
