Determinants of Takaful Investment in the Northwest Region of Nigeria: A Pilot Study

Abstract

 Despite being a relatively new phenomenon, Takaful represents a powerful revolution in Islamic banking. Takaful aims to offer Shari'ah-compliant indemnity against any kind of bodily or material damages resulting from accidents or natural disasters as a risk-reducing contractual agreement. The need for this inquiry is driven by the question of what influences people's desire for Takaful investing. The purpose of the inquiry is to determine what motivates Takaful to invest in Nigeria's Northwest. The research assesses the importance of the specified socioeconomic and demographic factors that determine Takaful investment in Northwest Nigeria using logistic regression. People who are clients of Takaful businesses in the Northwest region self-administered the questions for the pilot study. The key conclusions indicate that duration of use, takaful indemnification, and distribution of surplus are important factors that influence takaful investment in Nigeria's northwest. Despite being a pilot study, the results offer an understanding of the Takaful idea and its determinants among households in the study area.