The National Insurance Commission (NAICOM) has highlighted the importance of Takaful, an Islamic insurance system rooted in shared responsibility and ethical finance, as a tool for addressing Nigeria’s socioeconomic challenges. Speaking at the African Takaful and Non-Interest Finance Conference in Lagos, Commissioner Olusegun Ayo Omosehin stressed that Takaful’s risk-sharing model fosters inclusivity, social justice, and resilience, making it a vital alternative to conventional financial systems. The Islamic finance sector, valued at $3.8 billion and growing rapidly, demonstrates its potential in supporting sustainable development.
Omosehin noted that Takaful operates on a mutual cooperation basis, providing financial protection while fostering solidarity. Amid economic volatility and environmental crises, the Islamic finance model emphasizes ethical investment, reducing high-risk exposure and ensuring financial support for vulnerable communities. NAICOM has implemented initiatives like relaxed capital requirements and public awareness programs to boost the industry, which has seen annual growth rates exceeding 34% over the past four years.
He called for stronger stakeholder collaboration to expand Shariah-compliant investments and create innovative financial products. As global challenges persist, Islamic finance and Takaful offer a resilient framework for building a stable and equitable financial system, addressing Nigeria’s unique economic needs while promoting prosperity for all.
