Islamic Real Estate Investment Trusts as a Catalyst for Sustainable Islamic Education Development in Nigeria
Islamic Real Estate Investment Trusts sebagai Katalis Pengembangan Pendidikan Islam Berkelanjutan di Nigeria
DOI:
https://doi.org/10.24256/iqro.v9i3.9993Keywords:
Potentials, I-REITS, Catalyst, Education sector, NigeriaAbstract
Nigeria's educational sector continues to face infrastructural deficiencies, inadequate facilities, and limited financial resources, while Islamic finance offers asset-backed, interest-free financing instruments that remain little examined for education. This study examines the mediating role of Islamic Real Estate Investment Trusts (I-REITs) in the relationship between these three challenges and the sustainable educational sector in Nigeria. A quantitative survey design was used, with a structured five-point Likert questionnaire answered by stakeholders in the educational and financial sectors. The data were analyzed with structural equation modeling to test the measurement model, the structural paths, and mediation. The measurement model showed acceptable reliability and convergent validity, and most fit indices met the recommended thresholds. Six of the seven hypothesized paths were supported. Infrastructural deficiency, limited financial resources, and I-REITs were positively related to the sustainable educational sector, whereas the direct effect of inadequate facilities was not significant. I-REITs had a strong effect on the sustainable educational sector and mediated the effects of the three challenges. The findings suggest that, with supportive policy and stakeholder collaboration, I-REITs can serve as a sustainable financing mechanism for educational infrastructure. The results rest on perception-based survey data from Nigeria and should be generalized with caution.
References
Adewale, A. S., & Zubaedy, A. A. G. (2019). Islamic finance instruments as alternative financing to sustainable higher education in Nigeria. Global Journal Al-Thaqafah, 9(1), 35–48. https://doi.org/10.7187/GJAT072019-3
Amin, N. D., Aman, N. H. M., & Hassan, R. (2023). Analysing the regulatory framework of i-REITs in Malaysia, Singapore, and Indonesia. International Journal of Islamic Economics and Finance Research, 6(1), 116–131. https://doi.org/10.53840/ijiefer120
Ayoko, V. O., Peter, T., & Jegede, D. (2023). Inadequacy of infrastructural facilities in public universities in Nigeria: Causes, effects and solutions. International Journal on Integrated Education, 6(3). https://doi.org/10.31149/ijie.v6i3.4067
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173
Becker, G. S. (1993). Human capital: A theoretical and empirical analysis, with special reference to education (3rd ed.). University of Chicago Press.
Chuweni, N. N., & Eves, C. (2017). A review of efficiency measures for REITs and their specific application for Malaysian Islamic REITs. Journal of Islamic Accounting and Business Research, 8(1), 41–53. https://doi.org/10.1108/JIABR-03-2015-0007
Dabara, D. I., Ogunba, A., Chiwuzie, A., & Soladoye, J. O. (2019). Performance of real estate investment trusts in African real estate markets: A case study of Nigeria. In Annual European Real Estate Society Conference (ERES). https://doi.org/10.15396/eres2019_36
Elkington, J. (1997). Cannibals with forks: The triple bottom line of 21st century business. Capstone.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104
Gidage, M., & Bhide, S. (2025). ESG and economic growth: Catalysts for achieving sustainable development goals in developing economies. Sustainable Development, 33(2), 2060–2077. https://doi.org/10.1002/sd.3199
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Hu, L., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1–55. https://doi.org/10.1080/10705519909540118
Hussin, M. Y. M., Muhammad, F., Abdul Razak, A., Abd. Hadi, F. S., & Gan, P.-T. (2017). The role of macroeconomic variables in the Islamic real estate investment trusts (I-REIT) market in Malaysia. International Journal of Academic Research in Business and Social Sciences, 7(4). https://doi.org/10.6007/IJARBSS/v7-i4/2901
Ibidapo, C. O. K., & Akinmuyisitan, O. A. (2026). The relationship between governments' budgetary allocations to education and educational outcomes in Nigeria: An ARDL approach. Iconic Research and Engineering Journals, 10(2), 3087–3096. https://doi.org/10.64388/irev10i2-1722643
Indrawan, I. W., & Wahyuningsih, W. (2019). Literature review on REITs and Islamic REITs and lessons learned for Islamic REITs in Indonesia. International Journal of Islamic Economics and Finance, 2(1). https://doi.org/10.18196/ijief.2114
Lemhishi, M. F. (2023). The sustainable performance of Islamic REITs and their social contributions: Malaysia as case study. International Journal of Islamic Economics and Finance Research, 6(1), 29–50. https://doi.org/10.53840/ijiefer97
Mejía-Rodríguez, A. M., & Kyriakides, L. (2022). What matters for student learning outcomes? A systematic review of studies exploring system-level factors of educational effectiveness. Review of Education, 10(3), Article e3374. https://doi.org/10.1002/rev3.3374
Muhammad, T., & Al-Shaghdari, F. M. O. (2024). Islamic social finance system: An alternative tool for tackling educational setbacks in Northern Nigeria. Journal of Islamic Marketing, 15(11), 3115–3136. https://doi.org/10.1108/JIMA-05-2023-0149
Muhammed, I. A. (2025). Innovative capacity in Muslim-majority countries: Does Islamic finance play a role? Journal of Islamic Monetary Economics and Finance, 11(2), 241–268. https://doi.org/10.21098/jimf.v11i2.2375
Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). McGraw-Hill.
Odeajo, O., & Odefadehan, C. T. (2025). Investigating the current state of educational facilities in secondary schools in Lagos, Nigeria. Journal of Education Research and Library Practice. https://doi.org/10.70382/ajerlp.v9i8.041
Olanrele, O. O., Said, R., & Daud, N. (2015). Comparison of REIT dividend performance in Nigeria and Malaysia. African Journal of Business Management, 9(16), 608–614. https://doi.org/10.5897/AJBM2015.7855
Psacharopoulos, G., & Patrinos, H. A. (2018). Returns to investment in education: A decennial review of the global literature. Education Economics, 26(5), 445–458. https://doi.org/10.1080/09645292.2018.1484426
Ruslan, S. M. M. (2019). The financial performance of Islamic real estate investment trusts (REITs) in Malaysia. Asian Academy of Management Journal of Accounting and Finance, 15(1), 191–220. https://doi.org/10.21315/aamjaf2019.15.1.8
Sukor, M. E. A., Sujak, Z. A., & Noordin, K. (2020). Conventional REITs, Islamic REITs and macroeconomic variables in Malaysia: A review. ISRA International Journal of Islamic Finance, 12(1), 131–143. https://doi.org/10.1108/IJIF-08-2018-0089
Uline, C., & Tschannen-Moran, M. (2008). The walls speak: The interplay of quality facilities, school climate, and student achievement. Journal of Educational Administration, 46(1), 55–73. https://doi.org/10.1108/09578230810849817
Uloghobui, Z. M., Mulktaru, I. M., & Obomeghie, M. A. (2025). Effects of macroeconomic fundamentals on real estate investment trust scheme (REITs) returns: The Kenya experience. Gusau Journal of Entrepreneurship Development, 3(2), 186–204. https://doi.org/10.57233/gujed.v3i2.14
Wanke, P., Lauro, A., dos Santos Figueiredo, O. H., Faria, J. R., & Mixon, F. G., Jr. (2024). The impact of school infrastructure and teachers' human capital on academic performance in Brazil. Evaluation Review, 48(4), 636–662. https://doi.org/10.1177/0193841X231197741
Zhao, X., Lynch, J. G., Jr., & Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and truths about mediation analysis. Journal of Consumer Research, 37(2), 197–206. https://doi.org/10.1086/651257
Downloads
Published
Issue
Section
Citation Check
License
Copyright (c) 2026 Tijjani Muhammad, Umar Yaya Hammari
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
