ELEMENTS OF PATRONAGE OF IJARAH FINANCING IN JAIZ BANK PLC, KANO.

Abstract

Islamic finance in Nigeria is still in its nascent stages, and understanding the factors that influence customer patronage is critical for its growth and sustainability. While previous studies have identified religiosity, cost of financing, and awareness as key determinants of Islamic banking adoption, the role of product efficacyparticularly in relation to Ijarah financingremains underexplored. This study examines the factors influencing patronage of Ijarah financing products in Jaiz Bank Plc, with a specific focus on product efficacy.Using a quantitative research design, data was collected from 213 Ijarah financing customers across two Jaiz Bank branches in Kano State. Descriptive and inferential statistical analyses, including correlation and regression techniques, were employed to assess the relationship between product efficacy and customer patronage. The findings reveal a strong positive correlation (r = 0.882, p < 0.01), with product efficacy accounting for 96% of the variation in patronage (R² = 0.96). Regression results (β = 0.728, p < 0.01) confirm that customers prioritize practical benefitssuch as asset control, maintenance provisions, and flexible collateral policiesover religious considerations when choosing Ijarah financing.The study concludes that while religiosity remains a factor, the efficacy of Islamic banking products is the most significant driver of customer patronage. To enhance competitiveness, Islamic banks should focus on improving product functionality, transparency, and customer service. Recommendations include targeted marketing campaigns to highlight the practical advantages of Ijarah financing, as well as further research into additional factors such as digital accessibility and customer experience. These insights provide valuable guidance for financial institutions seeking to expand Islamic finance adoption in Nigeria.