Impact of Religion and Culture on Financial Inclusion in Katsina State, Nigeria
Main Article Content
Abstract
This study examines the impact of religion and culture on financial inclusion in Katsina State, Nigeria. The study employed a cross-sectional survey method to collect primary data from a sample of 450 unbanked adults drawn from nine distinct local government areas distributed across the three senatorial zones within the state. The collected data were analyzed using descriptive statistics and logistic regression approach. The results indicate that religious and cultural factors exhibit a detrimental influence on financial inclusion within Katsina State, Nigeria. These findings suggest that individuals' adherence to religious beliefs and cultural norms can hinder their engagement with financial services and inclusion initiatives. In light of these findings, the study offers several recommendations. Firstly, there is a call for tailored financial literacy programs that acknowledge and accommodate the specific religious and cultural contexts of Katsina State. Such initiatives could help alleviate the negative impact of these factors on financial inclusion. Additionally, collaboration among financial institutions, policy makers, and community leaders becomes imperative. By working together, they can formulate workable strategies that address these hindrances while respecting the values and practices inherent in the religious and cultural fabric of the state
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
References
Abdullahi, A., Othman, A. H. A., & Kassim, S. (2021). Financial inclusion enhancement through the adoption of Islamic microfinance in Nigeria. International Journal of Ethics and Systems, 37(3), 486-505.
Aliyu, H. A., & Yusuf, M. S. (2019). Socio-cultural factors and financial inclusion: Evidence from Nigeria. Cogent Economics & Finance, 7(1), 1611172.
Beg, S. and Mullick, N.H. (2016), “Increasing financial inclusion through Islamic banking in India”, International Journal of Business Management and Research (IJBMR), Vol. 6 No. 1, pp. 27-34.
David, O. O., Oluseyi, A. S., & Emmanuel, A. (2018). Empirical analysis of the determinants of financial inclusion in Nigeria: 1990-2016. Journal of Finance and Economics, 6(1), 19-25.
Demirgüç-Kunt, A., Klapper, L., Singer, D., & Van Oudheusden, P. (2015). The Global Findex Database 2014: measuring financial inclusion around the world (Working paper no. 7255). Washington, DC, WA: The World Bank.
EFInA (2020). Access to Financial Services in Nigeria 2020 Survey.
Iqbal, Z. and Mirakhor, A. (2012), “Financial inclusion: Islamic finance perspective”, Journal of Islamic Business and Management, Vol. 2 No. 1, pp. 35-64.
Kim, D. W., Yu, J. S., & Hassan, M. K. (2020). The influence of religion and social inequality on financial inclusion. The Singapore Economic Review, 65(01), 193-216.
Mustafa, D., & Adebayo, R. I. (2015). The operations of Islamic banking and finance in African emerging economies: thematic analysis. Bayero International Journal of Islamic Finance, 1(2), 45-69.
Mustafa, D., Baita, A.J. and Usman, A.Y. (2018), “Impact analysis of Islamic finance on financial inclusion and economic growth in selected Muslim countries: lessons for Nigeria”, International Journal of Economics, Management and Accounting, Vol. 26, pp. 393-414.
Naceur, S. B., Barajas, A., &Massara, A. (2015). Can Islamic banking increase financial inclusion? (IMF working paper no. 31). Washington, DC, WA: International Monetary Fund.
National Bureau of Statistics (NBS) (2019). Demographic Statistics Bulletin 2019.
National Population Commission (NPC) (2020). 2020 Population and Housing Census.
Odozi, V. A. (2018). Cultural factors influencing the use of formal financial services by low-income earners in Nigeria. International Journal of Emerging Markets, 13(1), 2-14.
Otusanya, O. J., et al. (2018). Religion and Financial Behaviour in Nigeria. Journal of Financial Management and Analysis, 31(1), 34-46.
Ozili, P. K., Lay, S. H., & Syed, A. A. (2023). Impact of financial inclusion on economic growth in secular and religious countries. Journal of Financial Regulation and Compliance.
Sain, M. R. M., Rahman, M. M., & Khanam, R. (2013, January). Financial exclusion in Australia: An exploratory case study of the Muslim community. In Proceedings of the 3rd Malaysian Postgraduate Colloquium (MPC 2013). University of Southern Queensland.
Umar, U. H., Ado, M. B., &Ayuba, H. (2019). Is religion (interest) an impediment to Nigeria’s financial inclusion targets by the year 2020: A qualitative inquiry. Qualitative research in financial markets, 12(3), 283-300.
World Bank. (2021). Global Findex Database 2021. Washington, DC: World Bank.
Zauro, N.A., Saad, R.A. and Sawandi, N. (2017), “Do attitude, religiosity and ethnicity influence financial inclusion?”, paper presented at the 3rd International Conference on Social Science and Law-Africa (ICSSL-Africa), 10 – 11 May, held at Nile University of Nigeria (NUN), Abuja.