ASSESSING THE PRACTICE OF ISLAMIC CROWDFUNDING AMONG MUSLIMS IN LAGOS STATE, NIGERIA

Abstract

This study examined the perception, practice, and transformative potential of Islamic crowdfunding in Lagos State against the backdrop of limited awareness and the growing need for Sharīʿah-compliant financial inclusion within Nigeria’s evolving Islamic social finance landscape. The study adopted a descriptive survey research design. Data were gathered through a structured questionnaire administered to a stratified sample of Muslim residents in six (6) Local Government Areas in the State: Epe, Ikorodu, Alimosho, Surulere, Ikeja, and Mushin, using a multistage sampling technique. A total of 650 participants were sampled for the study. The instrument was validated through expert review and pilot testing, with a reliability coefficient of 0.81. Data were analysed using descriptive statistics. Findings revealed that adoption remains limited, with 38.70% of respondents indicating that they had never used any Islamic crowdfunding platform, while participation was largely confined to donation-based purposes, 18.70%, and donation-only use, 10.70%, with equity and lending-based models remaining underutilised. Furthermore, over 70% of respondents affirmed its socio-economic relevance, particularly in providing interest-free financial alternatives, 82.30%, reducing poverty and promoting sustainable development, 79.70%, fostering social solidarity, 76.30%, empowering entrepreneurs, 75.00%, and enhancing inclusion of women and youth, 73.70%. However, the main barriers to adoption included limited awareness, 45.00%, lack of trust in platform organisers, 39.00%, difficulty in understanding platform operations, 33.70%, insufficient transparency, 31.70%, and challenges in verifying Sharīʿah legitimacy, 29.70%. The study concluded that Islamic crowdfunding in Lagos State exhibits strong conceptual acceptance and significant socio-religious relevance, yet remains constrained at the level of practical adoption. Consequently, the study recommended a multi-stakeholder approach involving government agencies, Islamic financial institutions, fintech innovators, and religious leaders; the formulation of clear regulatory guidelines by the Central Bank of Nigeria and the Securities and Exchange Commission tailored to Islamic crowdfunding; the establishment of Sharīʿah-compliant digital platforms with robust ethical governance; and targeted public sensitisation campaigns.