International Journal of Islamic Economics and Governance

An Empirical Analysis of E-Banking Services and their Impact on Customer Satisfaction and Loyalty: Evidence from Islamic Banks in Nigeria

Zayyana Abdulkadir Rimi — 2026-06-29

This study investigates the influence of electronic banking (e-banking) services on customer satisfaction and loyalty within the Islamic banking sector, with a specific focus on Jaiz Bank and Taj Bank in Nigeria. A cross-sectional survey was conducted with 384 customers, and the data were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that e-banking services have a significant and strong positive impact on both customer satisfaction (path coefficient = 0.951) and customer loyalty (path coefficient = 0.965). The model explains a substantial proportion of the variance in satisfaction (R² = 0.905) and loyalty (R² = 0.931), underscoring the critical role of digital service quality. The study concludes that Islamic banks must prioritize investment in robust, secure, and Shariah-compliant e-banking platforms to enhance customer retention and competitive advantage. Future research should broaden the geographic scope and investigate additional factors, such as regulatory frameworks and specific technology adoption barriers.

Reforming Ineffective Subsidies through Bay’ al-Salam: A Conceptual Framework

Nur Hurin Ayuni Haji Mohammad Syafien — 2026-06-29

This paper explores the possibility of Bay’ al-Salam as a tool for reforming ineffective government agricultural subsidies. Using a qualitative and literature-based conceptual analysis, it reviews Salam literature alongside studies on agricultural subsidies and documented cases of ineffective subsidies such as cases in Malaysia and Indonesia. This study reveals that Salam can effectively replace fiscal subsidies as it demonstrates superior potential in enhancing farmer empowerment including their autonomy and financial capacity, ensuring shariah compliance. The novelty of this paper lies in proposing Salam as a substitute for conventional subsidies, departing from the prevailing focus of Salam literature on structural modifications. Adopting Salam in place of subsidies may help reduce fiscal burden, help alleviate farmers socioeconomic conditions by breaking the cycle of ineffective subsidy, offering a practical, Shariah compliant support to expedite agriculture sector development and economic reform.

Assessing the Non-Financial Sustainability of Islamic Microfinance Institutions in Pakistan and Their Contribution Towards Sustainable Development Goals

Muhammad Naveed Aslam — 2026-06-29

Non-financial sustainability becomes a vital dimension in overall performance of microfinance Industry, especially in Islamic Microfinance Institutions (IMFIs). Social performance and its assessment are essential components as they are link to institutional goals with broader social outcomes such as poverty reduction, best utilization of resources, environmental effect of social finance and economic growth at micro level. Sustainability requires effective networking with government institutions, NGOs, and international donors to enhance resources and effective knowledge & practices. Main objective of microfinance is to alleviate poverty and maintain social equality without profit oriented approach, Therefore, IFMIs sustainability shall not delimited to financial but also associate with such variables that are essential for their core objectives. Essentials factors of non-financial sustainability include mission & vision sustainability, organizational development, Governance, program, impact assessment, Shari’ah compliance, human resources, environmental, effective market, policy & legal, and external factors sustainability. The purpose of the SDGs by UN is to create a global roadmap for making the world more prosperous, fair, and environmentally safe by 2030. The main objective of microfinance institutions is to alleviate poverty and cause of social inclusion which are the major parts of agenda 2030 of SGDs of UN. Thus, the main objective of this study is to assess the sustainability of IMFIs in term of non-financial factors. To achieve this objective, the self-administrative questionnaire was developed and responses were collected from top management of all IMFIs, all over Pakistan. Framing effect was observed in few responses. Descriptive statistics and frequency analysis are used to explain the results. Literature found on the sustainability however; it is limited to financial sustainability only. Nevertheless, other multiple factors that may affect directly or indirectly to sustainability with their well-defined indicators, found missing. The results depict that, IMFIs are sustainable in terms of mission & vision, Governance structure, human resources, environmental, external factors effecting sustainability and market. However, they are lacking in Impact assessment, Shari’ah compliance & audit, risk management and program sustainability. Some respondents have concerns regarding regulator and government support. This study will contribute in assisting practitioners by highlighting measures that effect sustainability, particularly emphasizing Shari’ah compliance in IMFIs.

The Ujrah Framework in Islamic Credit Cards: A Jurisprudential and Conceptual Analysis

Shad Muhammad — 2026-06-29

The increasing demand for Shari’ah -compliant financial solutions has led to the emergence of Islamic credit card models, among which the Ujrah framework offers a notable alternative to conventional interest-based systems. This study aims to examine the jurisprudential foundations, methodological underpinnings, and operational mechanisms of the Ujrah model in light of classical Islamic legal sources and contemporary financial practice. Using a descriptive analytical methodology, the research draws upon primary sources -including the Qur’an, Hadith, and classical fiqhi literature and secondary materials such as institutional fatwas, AAOIFI standards, and academic writings. The objective is to determine whether the Ujrah model maintains genuine Shari’ah compliance while addressing modern financial needs. The study contributes to existing literature by providing a structured comparative evaluation between Ujrah-based and other Islamic credit card models (e.g., Tawarruq and Murabahah), identifying their legal implications, ethical concerns, and practical limitations. Findings reveal that while the Ujrah framework aligns with many Islamic principles, challenges persist regarding fee justification, ibra’ conditions, and dual-contract risks. The research concludes that effective regulation, transparent disclosure, and robust Shari’ah supervision are essential for maintaining compliance. Future research may explore empirical testing of Ujrah-based card performance across jurisdictions.

An Assessment of Acceptance Rate of Digitalization of Takaful Insurance Industry in Nigeria

Abdul Ibrahim — 2026-06-29

This study analysed the level of acceptance of digitalization of Takaful of insurance industry in Nigeria, with specific focus on consumer engagement and retention within insurance industry with cutting-edge technologies such as mobile apps and social media (Instagram, Facebook and Internet). Digitalization offers numerous benefits but pose some concerns like data privacy and information overload, which may hinder the engagement efforts unless carefully dealt with. The study used the qualitative approach by interviewing experts, practitioners, consumers and stakeholders in the Islamic finance industry. This approach enables the collection of information and insights about the views and experiences of the agents involved in the process of implementing and practising the ethics of digitalization in Islamic insurance. The findings revealed that InsurTech is the most suitable tool for accomplishing the task while social media platforms such as Instagram and Facebook are helpful tools for customer engagement and experience and enhances operational efficiency, augments customer experiences, and ensures regulatory compliance, leading to increase in satisfaction and loyalty. This new development is expected to force conventional insurance providers to adopt Takaful approaches to remain competitive in the rapidly changing industry. Additionally, the research found that specific issues faced by Islamic finance, including Shariah compliance, cyber security and the digital divide will be appropriately resolved if Takaful industry is completely digitalized in Nigeria. The research calls for the need for a strategic plan that leverage on digital channels and ensure Shariah compliance to promote growth in the Islamic finance industry.

The Development of Islamic Finance and Economic Growth in the Republic of Sudan

Omer Mahmoud — 2026-06-29

This paper's main objective is to evaluate, the connection between the development of Islamic finance and economic growth during the last three decades in the Republic of Sudan. Islamic financial institutions in the Republic of Sudan have not only had a great economic impact but had a significant contribution, to the social fabric of the country, through the zakat and waqif system. Sudan is the third largest country in Africa; therefore, Islamic finance has ample opportunity to make great differences. The paper also will examine the contribution that has been made by Islamic finance toward the different economies, especially the agriculture sectors. Of the economy. The paper will emphasize more on the agriculture sector which employed more than 80% of the total workforce in the country. However, one may expect the contribution of Islamic finance in the country to the country’s agriculture sector will be detrimental because Sudan has significant farmland. Furthermore, even though the entire banking system in Sudan was converted in the early 1990s most banks in the country focus on short-term trade instead of focusing on the most productive sector of the country like agriculture. Others have argued that because the government of Sudan neglected the agriculture sector following oil discovery in the country in 1999, so did Islamic finance However, generally speaking, the overall impact on economic growth and real GDP in the country was very limited by any means. The finding also demonstrates even though Islamic finance has no direct contribution to economic growth, it nonetheless, has an indirect economic impact such as its impact on other factors that are related to which has a major influence, for example, on saving, investment, and consumption.