The Islamic financing in the country has grown to about three per cent of the country’s total financial market with an estimated value of $3.8 billion.
Commissioner for Insurance, Olusegun Ayo Omosehin, who spoke at the second edition of the African Takaful and Non-Interest (Islamic) Finance Conference, said the expansion reflected a robust and rising demand for Shariah-compliant financial services.
Omosehin said Sukuk bonds account for 59.3 per cent of the market share, non-interest banks 39.8 per cent, and Islamic funds and Takaful insurance 0.9 per cent.
The industry is made up of four non-interest banks, five Takaful companies, 15 microfinance institutions, and 10 non-bank financial institutions.
In collaboration with other regulators, the National Insurance Commission (NAICOM) Omosehin said is committed to supporting the sector’s growth by fostering more Shariah-compliant investment options for Takaful and other non-interest financial institutions.
Omosehin noted Takaful’s unique position in Islamic finance, explaining that it is a form of insurance grounded in mutual cooperation and shared responsibility, distinguishing it from conventional insurance models that typically involve risk transfer and interest.
