A Professor of Insurance at the University of Lagos (UNILAG), Tajudeen Yusuf, has called for an ethical repositioning of Nigeria’s insurance industry and the full integration of Takaful as a viable alternative to conventional risk management models.
Delivering the 13th Inaugural Lecture of the 2024/2025 academic session of the university titled; Risks, Ethics and The Road Less Taken: Navigating the Journey Between Insurance and Takaful, Professor Yusuf stressed the urgent need for reforms to improve Nigeria’s insurance penetration, especially among financially excluded populations.
The event, held at the J.F. Ade-Ajayi Auditorium, UNILAG, marked a milestone for the Department of Actuarial Science and Insurance, being the fifth in its history and the first by a member of the Insurance Unit.
Professor Yusuf, a pioneering authority in Takaful and non-interest finance, lamented Nigeria’s reactive approach to disaster risk management, citing incidents such as the 2008 Budu OSP oil spill, the 2024 Majiya fuel explosion, and the 2025 Zamfara Islamic school fire, which claimed multiple lives and exposed glaring institutional weaknesses.
“The Nigerian state has often responded to disasters rather than preparing for them,” Yusuf said, noting the devastating impact of inadequate regulations, poor safety enforcement, and the near absence of insurance coverage in public institutions. “There was no mandatory fire insurance policy for that school,” he added, referencing the Zamfara tragedy that led to a prolonged fire outbreak and public outcry.
Citing figures from recent research, Yusuf revealed that only a fraction of the population has access to insurance, blaming this on mistrust, weak regulation, and the unethical conduct of some operators.
“Takaful offers a win-win model rooted in fairness, mutual responsibility and ethical investments. With Takaful, participants who don’t make claims are entitled to a share of the surplus. This motivates caution and fosters a risk management culture”, he explained.
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According to him, Takaful aligns with Shariah principles and offers a culturally compatible path to deepening financial inclusion among Nigeria’s underserved Muslim population.
“Nigeria needs to stop treating Takaful like conventional insurance. It is different and it must be regulated differently.With just one Takaful operator in 2003, we now have up to six, growing at 15 to 20 per cent annually. That shows promise. My lecture is a wake-up call to the sleeping giant called Takaful”, he added.
The professor urged regulators to broaden support for ethical insurance models, citing the failures of conventional insurers during recent high-profile cases like the Lagos COVID-era Jeep Shiroki crash and the CBEX Ponzi saga.
He also warned against Ponzi-style ventures parading as faith-based investments, describing them as “facades of morality” that exploit trust without regulatory accountability.
“In the name of sustainable returns, people lose their life savings. We must insist on transparency, ethical conduct and stronger governance in the financial system,” he said.
He appealed to government, regulators, insurers, and faith-based institutions to “take the road less taken” by mainstreaming ethical insurance and investing in Takaful as a transformative tool for national development.
In her remarks, the Vice Chancellor of the University of Lagos, Professor Folasade Ogunsola, described the lecture as a profound interrogation of the Nigerian insurance landscape.
“The lecture navigated the complexities of the insurance landscape, critically analysing both its conventional and alternative models,” she said. “Our inaugural lecturer traced his personal and professional evolution, from initial disinterest in insurance to becoming the first Professor of Insurance at UNILAG. His journey reflects not only intellectual depth but a strong commitment to ethical translation in finance.”
The VC highlighted Yusuf’s contributions to the sector, including new models for reducing opportunism, improving fairness in transactions, pioneering studies on Takaful penetration in Nigeria, and linking Islamic finance to financial inclusion and sustainable development.
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She said: “His advocacy efforts contributed to the development of Nigeria’s Takaful regulatory framework in 2013,” she noted. “He also integrated Islamic social finance tools such as Zakat into insurance policy design, promoting equitable financial protection.”
Professor Ogunsola commended the lecturer for addressing systemic issues in the sector, including low public trust, regulatory inefficiencies, disaster unpreparedness, and poor enforcement of compulsory insurance laws. “He presented compelling case studies like the 2024 Majiya oil explosion and the 2025 Zamfara school fire to illustrate the consequences of Nigeria’s weak risk management culture,” she added.
Calling the lecture a blend of “academic freedom and social impact,” the VC lauded Yusuf’s central thesis. “His question—can financial systems be reimagined in the service of the common good?-is powerful. I believe he has shown us that yes, we can”, she added.
The past Chairman of Nigerian Deposit Insurance Corporation (NDIC), Dr AbdulHakeem AbdulLateef,described Yusuf as a leading light in the Takaful space.
“I regard Professor Tajudeen as a great scholar in Islamic finance. Takaful is consistent with Shariah objectives—protecting and maximising wealth. As more Nigerians understand its benefits, they will embrace it”, he said.
He criticised the profit-driven nature of conventional insurance. “Insurance shouldn’t just be about profit—it should be about collective good. Islamic insurance presents a win-win structure for all stakeholders.”
He urged Nigerians to move away from exploitative systems. “Where do insurers expect to get N500 million after only collecting N10 million in premiums? Takaful encourages fairness and responsibility. We must take it seriously”, he added.