By Stella Odueme
The National Agricultural Development Fund (NADF) has received N3.4 million as surplus from Jaiz Takaful Insurance Limited under an agricultural and investment risk insurance arrangement.
The Managing Director/Chief Executive Officer of Jaiz Takaful Insurance Limited, Ibrahim Shehu, presented confirmation of the payment during a visit to the Executive Secretary/CEO of NADF, Mohammed A. Ibrahim.
Shehu said the payment was in line with the agreement reached with NADF when the Fund subscribed to the Takaful cover, adding that the surplus accrued from the 2024 financial year.
He explained that under the Takaful arrangement, participants who do not make claims during the covered period may be entitled to a share of any surplus generated by the participating portfolio, subject to the terms of the scheme.
According to him, the visit was to formally demonstrate to NADF that Jaiz Takaful had fulfilled its commitment to the Fund.
“We came to present a symbolic letter stating clearly the amount of surplus the organisation is entitled to. Precisely, the sum of N3.4 million,” Shehu said.
He said the arrangement distinguished Takaful from conventional insurance by providing participants with an opportunity to benefit from surplus generated by the portfolio where applicable, in addition to protection against covered losses.
Speaking on the development, the NADF Executive Secretary/CEO, Mohammed A. Ibrahim, said the Fund was also advancing its work on non-interest finance as part of efforts to expand funding opportunities in the agricultural sector.
Ibrahim disclosed that NADF was currently validating its Non-Interest Finance Framework and Guidelines, which would provide a structured basis for collaboration with licensed non-interest financial institutions.
He said the framework was designed to develop financing options capable of responding to the diverse needs of farmers and businesses across the agricultural value chain.
The NADF boss added that the Fund was exploring non-interest finance as an additional mechanism for addressing financing gaps in agriculture and expanding access to funding for farmers and agribusinesses.
The N3.4 million surplus payment therefore provides a practical example of the potential benefits of Takaful arrangements as NADF works to deepen non-interest financing options within Nigeria’s agricultural sector.
