Hussein Momoh
Eseohe Akomen Ogbeide
Department of Finance, Faculty of Management Sciences,
University of Benin, Benin City
hussein.momoh@uniben.edu; eseogb@gmail.com
Abstract
This study investigates the behavioural factors influencing the adoption of Islamic finance as an ethical alternative to conventional banking among consumers in Lagos and Abuja, Nigeria. Specifically, the research examines the impact of consumer awareness, perceived ethical value, and religious-cultural compatibility on the adoption of Islamic finance. The study adopted a quantitative research design, using structured questionnaires to collect primary data from 313 valid respondents, selected through stratified random sampling. Data were analysed using descriptive statistics, Pearson correlation, and multiple regression analysis. The findings reveal that all three independent variables significantly and positively influence the adoption of Islamic finance, with perceived ethical value emerging as the strongest predictor. The results underscore the importance of ethics, financial literacy, and cultural alignment in shaping consumer behaviour in Nigeria’s emerging Islamic finance market. The study concludes that Islamic finance has considerable potential for growth in Nigeria, especially if supported by public awareness campaigns, ethical branding, and culturally inclusive strategies. The findings have practical implications for policymakers, financial institutions, and scholars interested in ethical banking and inclusive finance.
Keywords: Islamic finance, consumer behaviour, ethical banking, Nigeria, adoption, awareness, cultural compatibility.