Prospects and challenges of Islamic microfinance in Nigeria: Insight into Jaiz Bank, Sokoto State, Nigeria
Keywords:
Islamic Microfinance, Poverty alleviation, Microfinance facilities, Standard of living, Low-income communities, Jaiz Bank, NigeriaAbstract
This study examines the contribution of Islamic microfinance to poverty alleviation in Sokoto State, Nigeria, with specific reference to the microfinance facilities offered by Jaiz Bank. Adopting a qualitative research methodology, the study explores how Islamic microfinance initiatives enhance the standard of living among low-income communities in the state. Data were collected through in-depth interviews and case studies involving Jaiz Bank staff and beneficiaries, supported by extensive library research and systematic observational protocols. The study addresses a significant research gap by providing an empirical assessment of the current state of Islamic microfinance contributions in Sokoto State, an area that remains underexplored in existing literature. The findings reveal that Jaiz Bank’s Islamic microfinance empowerment initiatives have contributed to poverty alleviation by reducing financial exclusion, expanding access to Shariah-compliant financial services, and supporting income-generating activities through small-scale business and entrepreneurial development. These interventions have positively influenced beneficiaries’ standards of living, employment opportunities, and overall socio-economic well-being. However, the study also identifies several operational and structural challenges that limit the full realization and scalability of Islamic microfinance in the state. Despite these challenges, the findings suggest that Islamic microfinance holds substantial potential as an effective poverty alleviation tool when supported by enabling policy frameworks and practitioner-informed strategies.
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