Takaful Practice in Nigeria: History, Present and Futures


The development of a robust financial system is an important objective especially for a country like Nigeria, being a formidable force on the African continent. As the country aspires to become a major international financial centre in the continent by the year 2020, the development of Takaful as a major segment of Islamic finance remains paramount. Despite government’s effort and the huge potentials for such a unique service, the growth in Takaful operations is still at a nascent after over a decade of existence. Takaful ought to have recorded great success in Nigeria considering several positive factors, unfortunately, which has not been the case. Using a qualitative library research method, this paper provides an overview of Takaful with emphasis on its practice in Nigeria over the years. The paper also further explores the challenges hindering the development of Takaful in Nigeria especially on the legal aspect. Consequently, certain recommendations have been made to reverse the ugly trend. As a matter of urgency, the issues raised need to be addressed to facilitate accelerated development of Takaful operations and contribute towards achieving the much-needed revitalization of the Nigerian financial system.  


Islamic Finance, Takaful, Conventional Insurance, Nigeria,

Full Text:




Accounting and Auditing Organisation for Islamic Financial Institutions. (2015). Shariah Standards. Manama: Dar al-Maiman Publishing and DIstributing.

Ado, A. (2014). Nigeria: Where are we? In S. Thiagaraja, A. Morgan, A. Tebbutt, & G. Chan, The Islamic Finance Handbook: A practitioners guide to the global markets (pp. 355-367). Singapore: John Wiley & Sons Singapore Pte Ltd.

Ali, E. R., & Odierno, H. S. (2008). Essential Guide to Takaful (Islamic Insurance). Kuala Lumpur: CERT Publications Sdn. Bhd.

Aliyu, M. B., & Ahmad, I. M. (2014). Shariah Compliant Insurance Product: an overview of problems and prospects of Takaful-Insurance in Nigeria. Unilorin Shariah Journal.

Beyond the BRICs: a look at the "Next 11". (2007). In S. Lawson, D. Heacock, & A. Stupnytska.

Central Bank of Nigeria. (2007). Financial System Strategy 2020. Central Bank of Nigeria.

Central Bank of Nigeria. (2012). National Financial Inclusion Strategy. Central Bank of Nigeria. Retrieved February 23, 2017, from

Central Intelligence Agency. (2016, November 28). Retrieved from Central Intelligence Agency Web Site:

Central Intelligence Agency. (2016). Retrieved February 22, 2017, from Central Intelligence Agency Web site:

Central Intelligence Agency. (2016, November 23). CIA World FactBook; Nigeria. Retrieved from Central Intelligence Agency:

Cornerstone Insurance Plc. (216). Subsidiaries: Cornerstone Insurance Plc. Retrieved December 5, 2016, from Cornerstone Insurance Plc Web Site:

Dewa, N. (2013, September 13). The Introduction of Takaful in Nigeria.

Dias, D., Garand, D., & Swinderek, D. (2013). Towards Inclusive Insurance in Nigeria: An analysis of the market and regulations . access to insurance initiative.

Investopedia. (2016, December 5). Takaful. Retrieved from Investopedia Web Site:

Ismail, E. (2015). Takaful: The great potential in Nigeria. Retrieved December 2, 2016, from

National Health Insurance Scheme. (1999). National Health Insurance Scheme Act 1999.

National Insurance Commision of Nigeria. (2013). 2013 Takaful Insurance Operational Guidelines. Abuja: National Insurance Commission.

National Insurance Commission. (2003). Insurance Act 2003.

National Insurance Commission. (2016). Retrieved December 5, 2016, from National Insurance Commission of Nigeria Web Site:

National Pension Commission. (2014). Pension Reform Act. Retrieved February 27, 2017, from

National Population Commission of Nigeria. (2016, November 5). Retrieved from National Population Commission Web Site:

Niger Insurance Plc. (2016). Niger Mutual Halal Plan. Retrieved December 5, 2016, from Niger Insurance Plc Web Site:

Nigeria Reinsurance Corporation. (2016). Insurance Industry Outlook for 2016. Nigeria Reinsurance Corporation.

Nigeria Social Insurance Trust Fund. (2010). Employees compensation act 2010. Retrieved February 27, 2017, from

Nigerian Agriculture Insurance Corporation. (1993). Nigerian Agricultural Insurance Corporation Decree No. 37.

Oxford Business Group. (2017). Low Insurance Penetration Rates in Nigeria Suggest Growth for Local Players. Retrieved February 23, 2017, from Oxford Business Group Web site:

Saleh, M. M., Balan, S. a., & Ruslan, M. K. (2016). Learning from the Malaysian Experience: Overcoming the regulatory challenges in the nascent Takaful practice in Nigeria. Journal of politics and law, 9, 142.

Tahir-ul-Qadri, M. (2012). The Constitution of Medina. London: Minhaj-ul-Quran Publications.

Takaful Ikhlas. (2016). The concept and benefits of Takaful. Retrieved February 23, 2017, from Takaful Ikhlas Web site:

Yusuf, T. O. (2012). Prospects of Takaful's (Islamic Insurance) Contributions to the Nigerian Economy. Journal of Finance and Investment Analysis, 217-230.

Yusuf, T. O., & Babalola, A. R. (2015). Takaful in Nigeria: Penetration challenges and the way forward. Journal of Islamic economics, banking and finance, 11(2), 133-148.

Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

EJIF - European Journal of Islamic Finance has been approved for inclusion in ERIH PLUS and in DOAJ 

Indexed by
EBSCO Discovery Service e Arab World Research Source: Al Masdar

European Research Centre for Islamic Finance 

Registrazione Tribunale di Torino n.: 29
data registrazione: 21.10.2014
ISSN 2421-2172
Direttore responsabile: Paolo Biancone

Università degli Studi di Torino


Licenza Creative Commons

EJIF content is licensed under a Creative Commons Attribution 4.0 International License.