• Tijjani Muhammad Faculty Arts, Management and Social Sciences, Federal University, Gashua, Yobe State, Niger
  • Besar Bin Ngah Professor, Faculty of Finance and Admin. Science, Al-Madinah International University, Malaysia
  • Fahd Al-Shaghdari Assistant Professor, Faculty of Finance and Admin. Science, Al-Madinah International University, Malaysia
Keywords: Causes, Financial Exclusion, Islamic Financial Institution.


The study is to assess the causes and barriers of financial exclusion using three theories, including vulnerability theory (Poverty and Religiosity), financial literacy theory (Awareness), and public service theory (Attitude of Government Policy), to evaluate the relationship between the Islamic financial institutions and financial exclusion in Northern Nigeria. The study adopted a random sampling method with 450 respondents using Confirmatory Factor Analysis under Structural Equation Modelling (SEM) and SPSS. The study indicates the positive relationship between the three theories and financial exclusion and further identified some theoretical contributions indicating highly influential relationships between the predicted variables of the above theories. The study further identified the most significant contribution to the financial institutions by developing relevant literature to sort out the issues and challenges behind financial exclusion in Nigeria. Islamic financial institutions are considered a phenomenon and solution to this current issue of financial exclusion. The present study developed an integrated model which defines financial exclusion and its approach through three theories in addressing financial exclusion in Nigeria. It is also considered among the country's first attempts to solve financial exclusion.

JEL Classification Codes: G18, G23, G53, I32.


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How to Cite
Muhammad, T., Ngah, B. B., & Al-Shaghdari, F. (2022). ISLAMIC FINANCIAL INSTITUTIONS AS SOLUTION TO FINANCIAL EXCLUSION IN NORTHERN NIGERIA: A MODEL DEVELOPMENT. International Journal of Islamic Business & Management, 6(1), 44-54.
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper