Role of Takaful in Supporting the Financial Well-Being of Muslim Elderly in Kano State: A Qualitative Study
DOI:
https://doi.org/10.61143/umyu-jafr.8(1)2025.023Keywords:
Takaful, elderly welfare, Islamic finance, financial inclusion, Kano StateAbstract
This qualitative study investigates the role of Takaful, a Shariah-compliant cooperative insurance model, in supporting the financial well-being of Muslim elderly (aged 60+) in Kano State, Nigeria. Data were collected through focus group discussions and key informant interviews with elderly participants, Takaful providers, Shariah scholars, and community leaders. Thematic analysis revealed that awareness and understanding of Takaful among the elderly is generally low, with many participants confusing it with conventional insurance. Religious values play a central role in shaping financial decisions, although cultural reliance on family and community support often reduces the perceived need for formal financial schemes. Participants also reported acute financial challenges, including income insecurity, high healthcare costs, and limited access to pensions. Furthermore, adoption is hindered by product complexity, trust deficits, and the lack of elderly-specific offerings; however, opportunities exist in mosque-based awareness campaigns, flexible payment options, and collaboration with religious leaders. The study concludes that Takaful has significant potential to reduce financial vulnerability among elderly Muslims if tailored to their socio-economic realities and integrated with existing Islamic social finance instruments. Recommendations include targeted financial literacy programs, simplified product design, and stronger community engagement to enhance trust, accessibility, and long-term sustainability.
References
Abu Al Haija, E., & Houcine, A. (2024). Risk management efficiency of Takaful and conventional insurance sectors in UAE and KSA. Journal of Islamic Accounting and Business Research, 15(8), 1222–1244.
Ahmed, H., & Ma’in, M. (2020). Micro-Takaful: A tool for poverty alleviation among the low-income Muslim community. International Journal of Islamic and Middle Eastern Finance and Management, 13(4), 721–737.
Alawode, G. O., & Adewole, D. A. (2021). Assessment of the design and implementation challenges of the National Health Insurance Scheme in Nigeria: A qualitative study among sub-national level actors, healthcare and insurance providers. BMC Public Health, 21, 124.
Arifin, A. N., Noor, S. A., & Nazarov, M. (2013). The emergence of takaful within Islamic heritage: Historical foundations and modern transformations. International Journal of Research and Innovation in Social Science, 7, 48–61.
Bakar, N. A., Ismail, N., & Salleh, S. (2022). Public awareness and understanding of Takaful in Muslim-majority countries: A comparative analysis. Journal of Islamic Accounting and Business Research, 13(2), 312–329.
Balarabe, I., Abubakar, A., & Bala, M. (2024). Determinants of Takaful investment in the Northwest region of Nigeria: A pilot study. Journal of Business & Economics, 6(1). https://journals.au.edu.pk/ojs/index.php/jbe/issue/download/45/220
Bazeley, P., & Jackson, K. (2013). Qualitative data analysis with NVivo (2nd ed.). SAGE Publications.
BenSaid, Y. R. (2023). Shariah governance and takaful financial performance: the case of listed takaful insurances. Journal of Islamic Accounting and Business Research.
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101.
Central Bank of Nigeria. (2024). Financial inclusion in Nigeria: Status, trends and drivers. https://www.cbn.gov.ng/documents/ActNPolicy
Creswell, J. W., & Poth, C. N. (2018). Qualitative inquiry and research design: Choosing among five approaches (4th ed.). SAGE Publications.
Devi, A. (2024). A study on Shariah issues of tabarru’ and underwriting surplus in Takaful. Maqasid al Shariah Review, 2(2).
DiCicco-Bloom, B., & Crabtree, B. F. (2006). The qualitative research interview. Medical Education, 40(4), 314–321.
Dusuki, A. W. (2008). Understanding the objectives of Islamic banking: A survey of stakeholders’ perspectives. International Journal of Islamic and Middle Eastern Finance and Management, 1(2), 132–148.
Fadun, O. S. (2015). Takaful (Islamic insurance) practices: Challenges and prospects in Nigeria. Journal of Risk and Insurance Practice, 1(1), 12–28.
Fusch, P. I., & Ness, L. R. (2015). Are we there yet? Data saturation in qualitative research. The Qualitative Report, 20(9), 1408–1416.
Guest, G., Bunce, A., & Johnson, L. (2006). How many interviews are enough? An experiment with data saturation and variability. Field Methods, 18(1), 59–82.
Ismail, N., Rahman, A., & Haniffa, R. (2021). Mosque-based financial literacy and Takaful participation: Evidence from Southeast Asia. Journal of Islamic Marketing, 12(7), 1345–1362.
Kahf, M. (2003). The role of waqf in improving the ummah welfare. Paper presented at the 4th International Seminar on the Role of Waqf in Enhancing the Ummah Welfare, Kuala Lumpur, Malaysia.
Kehinde, L. H., & Sharofiddin, A. (2021). The level of acceptance and awareness of Takaful in Nigeria. Journal of Islamic Finance, 10(1), 46–58.
Kehinde, A., & Sharofiddin, A. (2021). Acceptance of Takaful services in Nigeria: The roles of Shariah view, locality, awareness and service quality. International Journal of Research and Innovation in Social Science, 5(6), 1763–1776. rsisinternational.org
Khan, T., & Bhatti, M. I. (2008). Development in Islamic banking: A financial risk-allocation approach. The Journal of Risk Finance, 9(1), 40–51.
Kitzinger, J. (1995). Qualitative research: Introducing focus groups. BMJ, 311(7000), 299–302.
Lincoln, Y. S., & Guba, E. G. (1985). Naturalistic inquiry. SAGE Publications.
Maiyaki, A. A., & Ayuba, H. (2009). Consumers’ attitude toward Islamic insurance services (Takaful) patronage in Kano metropolis, Nigeria. International Journal of Marketing Studies, 1(2), 123–129.
MDPI Review. (2024). The development of Sharia insurance and its future sustainability in risk management: A systematic literature review. Sustainability, 15(10), 8130.
Moustakas, C. (1994). Phenomenological research methods. SAGE Publications.
Muneeza, A., Kunhibava, S., Mohamed, I., & Mustapha, Z. (2025). Empowering the elderly: A cash waqf Takaful model for enhanced provision and protection in Malaysia. International Journal of Islamic and Middle Eastern Finance and Management, 18(1), 68–90.
Nazir, N., & Noor, S. (2018). Takaful principles: Mutual responsibility and cooperation in Islamic finance. Journal of Islamic Finance, 5(1), 34–52.
Nowell, L. S., Norris, J. M., White, D. E., & Moules, N. J. (2017). Thematic analysis: Striving to meet the trustworthiness criteria. International Journal of Qualitative Methods, 16(1), 1–13.
Oseni, U. A., & Affusim, C. C. (2021). Healthcare financing in Nigeria – An analysis of the Islamic model. Iman Medical Journal, 7(1), 1–7. imanmedicaljournal.org
Palinkas, L. A., Horwitz, S. M., Green, C. A., Wisdom, J. P., Duan, N., & Hoagwood, K. (2015). Purposeful sampling for qualitative data collection and analysis in mixed method implementation research. Administration and Policy in Mental Health and Mental Health Services Research, 42(5), 533–544.
Patton, M. Q. (2015). Qualitative research & evaluation methods (4th ed.). SAGE Publications.
Psychosocial health challenges of the elderly in Nigeria: A narrative review. (n.d.). PubMed Central. ncbi.nlm.nih.gov
Rahman, M. H., & Aziz, N. S. Z. (2025). A critical study of tabarrù (donation)-based takaful models: Determining tàawun (mutual assistance) as the underlying notion of Takaful. Journal of Islamic Accounting and Business Research.
U.S. Commission on International Religious Freedom. (2010). Annual report 2010: Nigeria. https://www.uscirf.gov/annual-report-2010
World Bank. (2024). Out-of-pocket expenditure (% of current health expenditure) – Nigeria. https://data.worldbank.org/indicator/SH.XPD.OOPC.CH.ZS?locations=NG
Yahaya, A., Sulaiman, S. M., & Aminu, H. A. (2022). Patronage factors of motor vehicle Takaful in Kano State, Nigeria. International Journal of Islamic Economics and Finance, 5(2), 259–286. https://journal.umy.ac.id/index.php/ijief/article/download/14970/7739
Yusof, R. M., Bakar, N. A., & Noor, A. M. (2019). The influence of cultural norms on Takaful participation: Evidence from Malaysia and Indonesia. Asian Journal of Business and Accounting, 12(1), 83–107.
Central Bank of the UAE. (2023). Standard re Shari’ah Governance for Takaful Insurance Companies. Abu Dhabi: Author. https://rulebook.centralbank.ae/en/rulebook/standard-re-shari%E2%80%99ah-governance-takaful-insurance-companies
Nazarov, I. I., & Dhiraj, N. S. (2019). A conceptual understanding and significance of takaful (Islamic insurance): History, concept, models, and products. International Journal for Innovation Education and Research, 7(4), 280–298.
Oni-Eseleh, O. D., & Badaiki, A. D. (2024). The financial well-being and quality of life of older adults in Nigeria. Social Work and Social Welfare, 5(1), 307–315.
Nsofor, I. M., & Yeboah, D. (2022, September 23). How Nigeria can reduce out-of-pocket payments for healthcare. Brookings Institution. brookings.edu
Nairametrics. (2023, August 9). Noor Takaful distributes N208 m surplus to policyholders. Nairametrics. nairametrics.com
ANZIIF. (2023, September 12). Takaful vs conventional insurance. Australian and New Zealand Institute of Insurance and Finance. https://anziif.com/professional-development/activities/2023/09/takaful-vs-conventional-insurance
Daily Trust. (2023, October 2). Jaiz Takaful Insurance participants get N152m surplus payout. https://dailytrust.com/jaiz-takaful-insurance-participants-get-n152m-surplus-payout/
Takaful knowledge.com. (2024, March 2). Shariah principles guiding takaful business. Retrieved from https://takaful-knowledge.com/2024/03/02/shariah-principles-guiding-takaful-business/
TheCable. (2024, November 15). Noor Takaful distributes N116 m surplus to participants. TheCable. https://www.thecable.ng/noor-takaful-distributes-n116m-surplus-to-participants
Adegboyega, A. (2024, December 19). Jaiz Takaful declares N230 million surplus for 2022. Premium Times Nigeria. https://www.premiumtimesng.com/news/762575-jaiz-takaful-declares-n230-million-surplus-for-2022.html
AllAfrica. (2025, February 17). Nigeria: Salam Takaful distributes surplus to 200 participants in Kano. Daily Trust. https://allafrica.com/stories/202502190564.html
Daily Trust. (2025, February 17). Salam Takaful distributes surplus to 200 participants in Kano. In AllAfrica. https://allafrica.com/stories/202502190564.html
Wikipedia contributors. (2025, July). Takaful. In Wikipedia, The Free Encyclopedia. https://en.wikipedia.org/wiki/Takaful
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
UMYU-JAFR recognizes the importance of protecting authors’ intellectual property while promoting the free exchange of knowledge. The journal adopts a copyright-retention model that empowers authors to maintain ownership of their work while granting the journal rights necessary for publication and dissemination.
1. Copyright Ownership
Authors publishing with UMYU-JAFR retain full copyright and publishing rights to their work. By submitting a manuscript, authors agree to grant the journal a non-exclusive license to publish, reproduce, distribute, and archive the article in all forms and media for the purpose of scholarly communication.
2. Licensing Terms
All articles are published under the Creative Commons Attribution–NonCommercial (CC BY-NC) license. This license permits others to share and adapt the material for non-commercial purposes only, provided that proper credit is given to the original author(s) and UMYU-JAFR as the source. Commercial reuse requires written permission from both the author and the editorial office.
3. Author Rights
Authors are free to deposit all versions of their manuscript in institutional or public repositories without embargo, use their published article for teaching and conference presentations, and include their work in future theses or compilations, provided proper citation to the journal is made.
4. Publisher’s Rights
Upon publication, UMYU-JAFR retains the right to host, index, and disseminate the article through its website and partner databases, and to archive the content in long-term preservation systems.
