Exploring the development of Islamic banking in Nigeria using an actor-network theory perspective

Abstract

Purpose

The purpose of this paper is to investigate the evolution of Islamic banking in Nigeria.

Design/methodology/approach

The paper adopts a qualitative approach using 25 semi-structured interviews together with documentary analysis to analyse how Islamic banking has evolved in Nigeria.

Findings

The paper demonstrates that the evolution of Islamic banking in Nigeria arose from a relationship between various human and non-human actors. The development was shaped by the Nigerian socio-economic environment, particularly the wealthy Muslim segment and the poor performance of the economy.

Practical implications

The study’s findings have practical implications for how governments in countries with diverse religions or ethnicities should take action when introducing new practices or concepts, such as Islamic finance, that align with one religion or ethnicity. The findings of this study suggest that publicising what the new practice or concept is in advance to the entire populace will enhance understanding and subsequent acceptance.

Originality/value

The paper differs from previous studies on the development of Islamic banking in two ways. First, it provides a contextual account of the various factors that have influenced the development of Islamic banking in Nigeria, a sub-Saharan Africa country for which research on Islamic banking is sparse. Second, the paper is unique in analysing how Islamic banking emerged as a process of actor-network formation.

Citation

Sa’id, H. (2020), "Exploring the development of Islamic banking in Nigeria using an actor-network theory perspective", Journal of Islamic Accounting and Business Research, Vol. 11 No. 5, pp. 1083-1099. https://doi.org/10.1108/JIABR-02-2018-0027