Prospecting for Sustainable Micro-Takaful Business in Nigeria

AbdulRahman, Z. (2006) Takaful : Potential Demand and Growth, Faculty of Business Management, University, Malaysia

Ali K. M. (2007 ) Basis and models of Takaf

Ahmed P. (2010) Risk Management in Takaful: What Makes the Difference? Fifth Annual World Takaful Conference, Dubai, UAE

15 Pages Posted: 3 Feb 2012 Last revised: 28 Jun 2014

See all articles by Abdullahi Ya'u Usman

Abdullahi Ya'u Usman

Association of Financial Analysts of Nigeria

Date Written: February 1, 2012

Abstract

The emergence of Islamic insurance (takaful) has substantiated a paradigm shift in the global financial services industry and this shift, though emanated from the Islamic countries, has today been accorded global popularity. Yet, in Nigeria takaful is considered as a new phenomenon with its absence in insurance legislation and near zero appearance of takaful companies even with a Muslim majority population in the country. The paper intends to explore the takaful concept and particularly provide a mirror look at micro-takaful and also prosper strategies and modalities for the establishment of micro-takaful companies in Nigeria without contravening the related provisions in the Nigerian constitution. Takaful models and variety of products are discussed and three ways of initiating a micro-takaful entity are proposed (i.e. through the establishment of takaful Multipurpose Cooperative Societies, companies limited by guarantee and takaful partnership businesses) pending the realisation of takaful specific legislations from the parliament. The establishment of Takaful Development Association is observed to be one of the basic foundations that could support the takaful industry in Nigeria, more especially at this preliminary stage.

Keywords: Islamic Insurance, Islamic Finance, Risk Management

Suggested Citation

Usman, Abdullahi Ya'u, Prospecting for Sustainable Micro-Takaful Business in Nigeria (February 1, 2012). AbdulRahman, Z. (2006) Takaful : Potential Demand and Growth, Faculty of Business Management, University, Malaysia , Ali K. M. (2007 ) Basis and models of Takaf, Ahmed P. (2010) Risk Management in Takaful: What Makes the Difference? Fifth Annual World Takaful Conference, Dubai, UAE , Available at SSRN: https://ssrn.com/abstract=1997441 or http://dx.doi.org/10.2139/ssrn.1997441

Abdullahi Ya'u Usman (Contact Author)

Association of Financial Analysts of Nigeria ( email )

No.10 Gwarzo Road, Kano
Along Kabuga Road, Kano
Kano, Norterhn Nigeria 23464
Nigeria
+2348065497222 (Phone)

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