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By Henry Uche
As Nigeria intensifies efforts to close its financial inclusion gap, insurance experts are tipping takaful (non-interest insurance) as a vehicle with transformative force that can realise that objective. Designed around ethical risk-sharing principles, Takaful offers an alternative pathway for millions who have remained outside the reach of conventional insurance.
With over 200 million people and vast informal economic activity, the model is increasingly seen as a trust-builder that cuts across faith, income and geography.
Regulators and industry leaders believe that by expanding awareness and access, non-interest insurance can deepen protection, strengthen confidence in the financial system and drive more inclusive and sustainable economic participation nationwide.
It was in this light that the Commissioner for Insurance, Mr. Olusegun Omosehin recently charged players in the insurance space to seize the opportunities Takaful insurance presents.
At a recent meeting with the Takaful Advisory Council (TAC) at the National Insurance Commission (NAICOM) in Abuja, Omosehin maintained that Nigeria’s rapidly expanding population of over 200 million people could become the decisive force behind a major surge in Takaful insurance adoption. This is even as industry leaders across the insurance value chain are intensifying efforts to tap into the country’s vast, largely untapped market.
The NAICOM boss described the meeting as an interactive session aimed at identifying areas for expansion and improvement within the Takaful insurance sub-sector.
He emphasised that the key challenge lies in harnessing this potential through increased participation and awareness, however praised the Council for its efforts in strengthening the Takaful insurance business.
He explained the structural background and core mandate of NAICOM, highlighting its responsibility to ensure industry stability, protect policyholders, and promote sustainable growth. “The ongoing reforms in the insurance industry are aimed at strengthening operators and safeguarding consumers” he said.
The NAICOM Chief also underscored the Commission’s developmental role, describing it as critical to the growth of the industry. He recalled that on July 31, 2025, President Bola Tinubu signed into law the Nigerian Insurance Reform Act (NIIRA) 2025, which formally recognizes Takaful insurance as part of Nigeria’s insurance business framework, describing the development as a major milestone for the industry.
“The future growth in the insurance sector would be driven by financial inclusion-focused segments such as microinsurance, Takaful insurance, and web aggregators. The engagement between NAICOM and TAC would be institutionalized as an annual meeting to further unlock the sector’s vast potential” he assured.
On his part, the Chairman of the Takaful Advisory Council, Professor Abdulrazzaq Alaro congratulated NAICOM’s Management on the enactment of the NIIRA 2025, describing it as unprecedented. He disclosed that the Council had formally written to the Commission to express its appreciation upon receiving the news of the new law.
Though the first of its kind, the discourse was apt for TAC and NAICOM management to exchange ideas and perspectives.
Abdulrazzaq urged NAICOM in its capacity as the industry regulator, to continue supporting awareness creation for Takaful insurance, which he identified as a major challenge facing the sector. He advocated for the organisation of retreats, workshops, and capacity-building programmes for stakeholders across the entire insurance industry, not limited to Takaful operators.
Takaful Insurance in Nigeria seeks to provide a Shariah-compliant alternative to conventional insurance, based on mutual cooperation, shared responsibility, and ethical risk-sharing. It seeks to protect individuals, families, and businesses against financial loss while avoiding interest (riba), uncertainty (gharar), and gambling (maysir). Takaful also promotes financial inclusion, ethical investment, social solidarity, and economic stability, particularly among Nigeria’s Muslim population, while operating within the country’s regulatory framework.
