MOBILE BANKING AND MUSLIM WOMEN ENTREPRENEURS' PERFORMANCE IN NORTHERN NIGERIA: MEDIATING ROLES OF LITERACY AND SHARIA-COMPLIANCE

Abstract

The purpose of this paper is to examine the impact of mobile banking adoption on business performance among Muslim women micro-entrepreneurs, specifically analyzing the mediating roles of financial literacy and Sharia-compliance preferences. Employing a cross-sectional survey design, data were collected from 385 respondents across Kano, Kaduna, and Katsina states and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings reveal a significant positive direct relationship between mobile banking adoption and business performance (β = 0.31, p < 0.001). Crucially, financial literacy (indirect effect β = 0.18) and Sharia-compliance preferences (indirect effect β = 0.14) partially mediate this relationship, with the model explaining 47% of the variance in business performance. The study concludes that while mobile banking enhances economic outcomes, its efficacy is contingent upon religious alignment and user financial capability. These results underscore the necessity for policymakers and fintech developers to integrate targeted financial literacy modules and Sharia-compliant features into digital financial services to foster inclusive economic empowerment among Muslim women in Northern Nigeria.