Awareness and Utilisation of Islamic Microfinance Services Among Small Business Owners in Kogi State

This study examines the level of awareness and utilisation of Islamic microfinance services among small business owners in Kogi State, North Central Nigeria. The state's mixed Muslim-Christian population and emerging small business sector present a unique context for examining the penetration of Sharia-compliant financial products. The study employs a descriptive survey design, with structured questionnaires administered to 240 Muslim small business owners in Lokoja, Kabba, and Idah. Data were analysed using descriptive statistics and chi-square tests. Findings indicate that although many respondents are aware of Islamic finance principles, their utilisation of institutional Islamic microfinance products remains limited. Primary barriers include geographic distance from Islamic financial institutions, complex application requirements, and a general preference for informal savings groups. The study also found that business owners with formal Islamic education demonstrated higher utilisation rates. Recommendations include the expansion of Islamic microfinance branches to underserved communities, simplification of product documentation, and public enlightenment campaigns in local languages. This research contributes to the understanding of Islamic financial inclusion in Nigeria's Middle Belt and provides practical recommendations for microfinance institutions and state-level economic development agencies. Keywords: Islamic microfinance, small business owners, Kogi State, financial inclusion, Sharia-compliant finance.