The National Agricultural Development Fund (NADF) has received ₦3.4 million from Jaiz Takaful Insurance Limited as a surplus payment under an insurance arrangement covering agricultural and investment risks.
The payment relates to the 2024 financial year and fulfils an agreement between the two organisations. Ibrahim Shehu, Managing Director and Chief Executive Officer of Jaiz Takaful Insurance, presented confirmation of the Fund’s entitlement during a visit to NADF Executive Secretary and CEO, Mohammed A. Ibrahim.
Shehu explained that Takaful insurance allows eligible participants to share in a surplus generated by an insurance portfolio when they have no claims during the coverage period and the scheme’s conditions are met.
Unlike conventional insurance arrangements, Takaful operates on principles of mutual assistance and risk-sharing. Under the arrangement, participants may receive part of the surplus generated by their contributions, subject to the terms of the scheme.
The payment comes as NADF works to expand financing options for farmers and agribusinesses across Nigeria.
Mohammed A. Ibrahim said the Fund was validating its Non-Interest Finance Framework and Guidelines to establish a structured basis for collaboration with licensed non-interest financial institutions.
The framework is intended to provide additional financing options for businesses across the agricultural value chain and help address funding constraints affecting the sector.
Expanding access to agricultural finance remains important for farmers seeking insurance protection, investment capital and the resources needed to increase production. NADF’s proposed framework could broaden the range of financial services available to agricultural businesses.
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