An empirical analysis on customers’ acceptance of Islamic micro finance in Kano State, North Western-Nigeria : the moderating effect of awareness

Abstract

Purpose: The objective of this research paper is to conceptualize the model in examining the moderating effect of awareness on attitude, knowledge, and customers’ acceptance of Islamic micro finance in Kano State, North Western-Nigeria. As, Islamic micro financial institutions deliver loans to small and medium enterprises (SMEs). Since, it serves as a means of curving of some social vices such as poverty, ethno-religious crises, farmers and herdsmen crises, cattle rustling, arm rubbers and kidnappers among others. Despite it great contributions to the growth of the economy there is deprived awareness on Islamic micro finance which leads to inadequate investment and patronage by the people in Kano State. Investors and the general public can use this research for guidance towards investments of their capital into Islamic micro finance for maximum profits. Also, stake holders, SMEs, traders and farmers can utilize the outcome of this study. Similarly, stock exchange commission, Central Bank of Nigeria and other financial institutions can use the results of this study towards making policies and strategies. -- Design/methodology/approach: Questionnaire was used and data was collected by random sample of 400 selected Islamic micro finance customers in Kano state, Nigeria. PLSSEM was used in analysing and testing the formulated hypotheses. -- Findings: Result indicated that knowledge and attitude have positive and significant relationship on acceptance of Islamic micro finance, while, awareness did not moderate relationship between attitudes but moderates knowledge and acceptance of Islamic micro finance.