The National Agricultural Development Fund (NADF) has received a N3.4 million surplus from Jaiz Takaful Insurance Ltd under an agricultural and investment insurance policy.
Ibrahim Shehu, Managing Director of Jaiz Takaful Insurance Ltd, disclosed this on Thursday in Abuja when he visited Mohammed Ibrahim, Executive Secretary of NADF, to formally present confirmation of the fund’s entitlement.
Shehu said the surplus arose from the 2024 financial year and was paid in fulfilment of an agreement reached with NADF when it subscribed to the Takaful cover.
He explained that Takaful arrangements allow eligible participants to receive a share of the surplus generated by the participating portfolio when no claims are made during the coverage period.
“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.
“So, we came to present a symbolic letter stating clearly the amount of surplus the organisation is entitled to, namely the sum of N3.4 million,” he said.
Shehu added that the arrangement offered protection against losses while providing for surplus sharing when the conditions of the scheme were met.
He noted that the development also demonstrated how non-interest financial instruments could provide both protection and potential financial returns within the terms of an arrangement.
Ibrahim said NADF was currently validating its Non-Interest Finance Framework and Guidelines to provide a structured approach to working with licensed non-interest financial institutions.
He said the framework formed part of the fund’s efforts to develop financing options that address the different needs of farmers and businesses across the agricultural value chain.
Ibrahim added that 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.
