Jaiz Takaful Reaffirms Transparency, Shariah Compliance at 2023 Surplus Event
The company declared a ₦118 million surplus for 2023 despite economic headwinds, pledging deeper digital transformation and sustained Shariah compliance.
By Abdullahi Yusuf
Jaiz Takaful Insurance Limited has announced the surplus distribution for the 2023 financial year, reaffirming its commitment to transparency, fairness, and strict adherence to Shariah-compliant business principles.
Speaking at the 2023 Surplus Sharing Ceremony held in Abuja, the Chairman of the Board, Hajiya Zainab Abdurrahman, said the year under review presented major economic challenges but reaffirmed the company’s resilience and ethical focus.
According to her, Jaiz Takaful declared a surplus of ₦118.009 million for the year, representing a 48.9 per cent drop from ₦230.806 million declared in 2022, a decline she attributed to intense market competition and prevailing macroeconomic headwinds, including inflation, exchange rate volatility, and a surge in family Takaful claims.
“Despite these challenges, Jaiz Takaful remains unwavering in its mission to offer Shariah-compliant and ethical insurance solutions. The modest surplus declared for 2023 reflects our integrity, transparency, and commitment to full disclosure,” she said.
She explained that only participants with fully paid policies and no claims during the year were eligible for surplus sharing, noting that the Family Takaful class recorded no surplus due to high claims that depleted its risk fund.
The chairman emphasized that the Takaful system promotes mutual cooperation, shared responsibility, and spiritual benefit through Tabarru (donation), making it distinct from conventional insurance.
She also lauded the National Insurance Commission (NAICOM) for its regulatory support and praised participants, brokers, shareholders, and staff for their continued trust and contribution to Jaiz Takaful’s steady progress.
In his remarks, the Managing Director/Chief Executive Officer, Alhaji Ibrahim Usman Shehu, announced that ₦111.18 million would be distributed to eligible participants for 2023, bringing the total surplus declared since 2020 to over ₦560 million.
He noted that Jaiz Takaful had declared surpluses of ₦84.5 million in 2020, ₦132 million in 2021, ₦233 million in 2022, and ₦111.18 million in 2023.
Shehu explained that the surplus represented the balance in the risk fund after all claims, reserves, and operational expenses were settled, describing the system as a “win-win” model that ensures fairness for all participants.
“In Takaful, participants share profits when there are no claims and are indemnified when losses occur. It is a transparent system built on fairness, equity, and accountability,” he said.
He revealed that the company had paid over ₦1.6 billion in claims within five years, including ₦476.28 million in 2023 and ₦200.8 million in 2024, reflecting strong financial discipline and responsiveness to policyholders’ needs.
Symbolic surplus cheques were presented to several corporate participants, including HYPPADEC (₦6.39 million), Niger Delta Power Holding Company (₦2.17 million), Jaiz Bank Plc (₦3.25 million), Nigeria Security Printing and Minting Plc (₦3.68 million), and individual policyholders such as Hajiya Halima Gajiram (₦52,581.35) and Zainab Ibrahim (₦250,322.33).
The MD also assured participants that 2024 would likely produce a higher surplus due to improved fund performance and fewer claims.
In an interview with PEACE Magazine on the sidelines of the event, Alhaji Shehu emphasized that Takaful had become a vital tool for promoting financial inclusion in Nigeria.
“Without Takaful, many Nigerians would have remained outside the insurance space because of cultural and religious reservations. This model gives customers a fair and transparent alternative, they either benefit from claims or share in the surplus. It’s the only insurance model that rewards participants even when they make no claims,” he said.
He added that Jaiz Takaful works with international partners in areas such as reinsurance, assessment, and marine insurance support, but clarified that the company’s operations and surplus coverage are limited to Nigerian-based policyholders.
Responding to questions on awareness, Shehu acknowledged that low public understanding of Takaful remains a challenge, urging Nigerians of all faiths to embrace it as an ethical business model, not a religious product.
“Takaful is not for Muslims alone. It’s a model that serves everyone who values fairness and transparency. Whether you’re Muslim or Christian, you stand to benefit either through claim settlement or surplus sharing,” he explained.
He further differentiated Takaful from conventional insurance, describing the former as a risk-sharing model, while the latter operates on risk transfer, stressing that Takaful fosters shared responsibility among participants.
Delivering the vote of thanks, Dr. Imam Abdullahi Shuaib expressed gratitude to Allah for the successful event and prayed that the surplus shared would open greater opportunities for both individuals and corporate participants.
He praised the commitment of co-operators who continue to support Takaful operations, urging regulators and stakeholders to sustain efforts in strengthening the ethical insurance model across Africa.
Also present at the ceremony were members of the company’s Board of Directors, including Engineer Garba Abubakar Muhammad, Alhaji Ahmadu Hamman Sambo, and Mallam Ibrahim Usman Shehu (MD/CEO).
The Advisory Committee of Experts (ACE) was represented by Prof. Muhammad Maiturare (Chairman), Prof. M.B. Uthman, and Prof. Sulaiman Karwai, who reaffirmed the company’s full compliance with Shariah principles.
Institutional participants included representatives from the Independent Corrupt Practices and Other Related Offences Commission (ICPC), HYPPADEC, Niger Delta Power Holding Company, Jaiz Bank, Summit Bank, National Hospital Abuja, CIIN Abuja Chapter, Hansworth Insurance Brokers, and Universal Insurance Brokers, among others.
Between 2020 and 2024, Jaiz Takaful Insurance Ltd has paid a cumulative total of ₦1.68 billion in claims to participants, reaffirming its financial strength and reliability as a leading operator in Nigeria’s ethical insurance space.
The company said it would continue to expand digital services, strengthen partnerships, and uphold its founding values of fairness, transparency, and compassion.
“This is a journey of shared success,” Chairman Abdurrahman said. “We will continue to optimize operations, improve investment returns, and build a sustainable future for all participants.”
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