NADF receives N3.4m surplus from Jaiz Takaful
NADF receives N3.4m surplus from Jaiz Takaful
The National Agricultural Development Fund (NADF) has received N3.4 million surplus from Jaiz Takaful Insurance Ltd. under an agricultural and investment insurance policy.
Ibrahim Shehu, Managing Director, Jaiz Takaful Insurance Ltd., disclosed this on Thursday in Abuja when he visited Mohammed Ibrahim, Executive Secretary, 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 said Takaful arrangements allowed eligible participants to receive a share of surplus generated by the participating portfolio when no claims were 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.
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“So, we came to present a symbolic letter stating clearly the amount of surplus the organisation is entitled to, precisely, the sum of N3.4 million,” he said.
Shehu said the arrangement offered protection against losses while providing for surplus sharing when the conditions of the scheme were met.
He said the development also demonstrated how non-interest financial instruments could provide 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 was part of the fund’s efforts to develop financing options that addressed the different needs of farmers and businesses across the agricultural value chain.
Ibrahim said the fund was exploring non-interest finance as another avenue for addressing financing constraints in agriculture and expanding options available to farmers and agribusinesses.
