Applicability of Islamic Micro-Investment Model in Kano State, Nigeria: Empirical Evidence

Abstract

This study examines the applicability of an Islamic micro-investment model (IMIM) as an alternative to conventional microfinance in Kano State, Nigeria. The model integrates key Islamic financial contracts—Ijara, Mudaraba, and Musharaka—supported by waqf mechanisms to address both economic and religious concerns associated with interest-based financing. Using qualitative methods, particularly expert interviews, the research evaluates the feasibility, sustainability, and socio-economic impact of the proposed model. Findings indicate that IMIM is applicable and well-suited to the socio-cultural context, offering significant potential for poverty alleviation, employment generation, financial inclusion, and ethical compliance. The study highlights the importance of awareness, institutional support, and proper implementation frameworks to ensure the model’s success.