Non-interest finance, takaful most tenable, time-tested — Bakare

The Chairman of Noor Takaful Insurance Limited, Muhtar Bakare, has said the non-interest finance and Takaful have become the most tenable, time-tested and culturally appropriate catalysts for change in Africa at a time when conventional finance has fallen short of meeting people’s basic needs.

He said this during the second edition of the African Takaful and Non-Interest Finance Conference, organised by Noor Takaful Insurance Limited in Lagos.

The event themed “Islamic Finance and Takaful: Building Resilience in a Volatile World” focused on finding new ideas that would ensure that financial resources become more equitable, especially to the underserved.

At the event, stakeholders drawn from the non-interest finance sector in Africa canvassed the need to create pathways that would deepen interest and adoption of non-interest finance and Takaful among Africans.

Delivering his welcome address, Bakare explained that non-interest finance and Takaful have become the most tenable, time-tested, and culturally appropriate catalysts for change in Africa at a time when conventional finance has fallen short of meeting people’s basic needs.

Bakare said Takaful and non-interest finance, which are rooted in the principles of solidarity, trust, equity, and risk sharing, remain the best models as they align seamlessly with the teachings of all three Abrahamic faiths and with the communal ethos of African societies.

According to him, Takaful presents alternative channels of financial mediation based on universally accepted principles that can accelerate financial inclusion well beyond Muslim communities. He stated that the company was already providing access to affordable capital in underserved communities, catalysing the accumulation of savings, while encouraging prudent ethical investment.

In her remarks, the Chairperson of the National Insurance Commission, Halima Kyari, who was represented by the Deputy Commissioner, Usman Jankara, stated that the agency has been instrumental in promoting the growth of the Takaful insurance industry in Nigeria through several initiatives, some of which include the issuance of Takaful Operational guidelines and the license of five Takaful operators.

Kyari noted that Islamic finance was growing rapidly, adding that the sector accounts for approximately 3% of Nigeria’s financial market, which is valued at $3.8 million.