Abuja:The National Agricultural Development Fund (NADF) has received a surplus of N3.4 million from Jaiz Takaful Insurance Ltd. This surplus was part of an agricultural and investment insurance policy with the company.
According to News Agency of Nigeria, Ibrahim Shehu, Managing Director of Jaiz Takaful Insurance Ltd., revealed the surplus during a visit to Mohammed Ibrahim, Executive Secretary of NADF, in Abuja. The purpose of the visit was to formally confirm the fund’s entitlement to the surplus arising from the 2024 financial year, as per the agreement made when NADF subscribed to the Takaful cover.
Shehu explained that the Takaful arrangement allows participants to receive a share of the surplus generated when no claims are made during the coverage period. This visit was to demonstrate the fulfillment of their promise to NADF by presenting a symbolic letter indicating the exact surplus amount.
He further stated that the arrangement not only offers protection against losses but also provides for surplus sharing when the scheme’s conditions are met. This development highlights the potential of non-interest financial instruments to offer both protection and potential financial returns.
Meanwhile, Mohammed Ibrahim noted that NADF is in the process of validating its Non-Interest Finance Framework and Guidelines. This framework is intended to provide a structured approach to collaborating with licensed non-interest financial institutions, aiming to develop financing options that meet the needs of farmers and businesses within the agricultural value chain.
Ibrahim emphasized that the fund is exploring non-interest finance as a means to address financing constraints in agriculture, thereby expanding the options available to farmers and agribusinesses.