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The National Agricultural Development Fund (NADF) has received a surplus from Jaiz Takaful Insurance Limited on an insurance policy taken by the Fund.
The Managing Director/CEO of Jaiz Takaful Insurance Limited, Ibrahim Shehu, disclosed this when he visited the Executive Secretary/CEO of NADF, Mohammed A. Ibrahim, to formally present the Fund with confirmation of its entitlement.
Shehu said the payment was the fulfilment of an agreement reached with NADF when the Fund took the Takaful cover.
He said the policy covered agricultural and investment risks and the surplus arose from the 2024 financial year.
“The main reason why we had to come to your office was to demonstrate to the management of NADF that the promise we made to them is now being kept,” Shehu said.
Under the Takaful arrangement, he explained, where a customer has no claim during the period and the participating portfolio makes a surplus, eligible participants can receive a share of that surplus.
“So, we came to present a symbolic letter stating clearly what the amount of surplus the organisation is entitled to. Precisely, the sum of N3.4 million,” he said.
The payment comes as NADF is also developing its approach to non-interest finance as part of efforts to widen financing options within the agricultural sector.
The Executive Secretary/CEO of NADF, Mohammed A. Ibrahim, said the Fund is currently validating its Non-Interest Finance Framework and Guidelines, which will provide a structured approach to working with licensed non-interest financial institutions.
“The framework is part of our effort to develop financing options that respond to the different needs of farmers and businesses across the agricultural value chain,” Ibrahim said.
He said the Fund was exploring non-interest finance as another avenue for addressing financing constraints in agriculture and expanding the options available to farmers and agribusinesses.
Shehu said the Takaful arrangement offered more than protection against losses, explaining that it also provides for surplus sharing where the conditions of the scheme are met.
“While insurance is to indemnify customers in the event of loss, we made a promise to them that Takaful has some other value proposition and that is that if the customer did not have a claim and the portfolio they participated in made profits, we shall share part of that profit with them as surplus,” he said.
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