ROLE OF ISLAMIC MICROFINANCE ON WOMEN EMPOWERMENT: THE CASE OF ZAKAT & WAQF FOUNDATION, GOMBE, NIGERIA

Abstract

This study examined the role of Islamic microfinance in promoting women's empowerment in Gombe metropolis, Nigeria. Specifically, the study investigated the effects of micro credit, micro saving, micro insurance, training on women's empowerment. A quantitative cross-sectional survey design was adopted, and data were collected from 100 women beneficiaries of Islamic microfinance services using a structured questionnaire. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to analyze the data. The findings revealed that micro credit (β = 0.183, p = 0.007), micro insurance (β = 0.146, p = 0.034), training (β = 0.627, p < 0.001) exert significant positive effects on women's empowerment, whereas micro saving (β = 0.073, p = 0.258) had a positive but statistically insignificant effect. The model explained 63.3% of the variance in women's empowerment, indicating substantial explanatory power. The study concludes that Islamic microfinance contributes significantly to women's empowerment, particularly when financial services are complemented with entrepreneurial training and risk protection mechanisms. The study recommends that Islamic microfinance institutions strengthen capacity-building programs, expand access to Shariah-compliant financing and Takaful services, and redesign saving products to enhance their developmental impact.