PROSPECTS OF FINTECH IN TAKAFUL OPERATIONS IN NIGERIA

This paper critically examines the prospects of financial technology (fintech) integration within Takaful operations in Nigeria, a context characterized by low insurance penetration, significant unbanked populations, and an evolving regulatory landscape. Through a systematic and interdisciplinary conceptual analysis grounded in Islamic finance principles and innovation diffusion theory, the study synthesizes contemporary scholarship, industry reports, and regulatory frameworks to articulate a holistic framework for fintech-enabled Takaful models. The proposed framework delineates the transformative potential of mobile platforms, artificial intelligence, blockchain, and RegTech in enhancing financial inclusion, operational efficiency, trust, and Shariah-compliant governance within Nigerian Takaful. Furthermore, this paper highlights critical systemic challenges, including infrastructural deficits, digital literacy gaps, and regulatory ambiguities, which may impede fintech adoption. By situating the discourse at the intersection of technological innovation and Islamic ethical finance, the study contributes to the burgeoning literature on Islamic fintech and offers actionable insights for policymakers, practitioners, and scholars aiming to foster sustainable, inclusive, and transparent Takaful ecosystems in emerging markets. The findings underscore the imperative for collaborative multi-stakeholder engagement to realize fintech’s full potential in advancing Islamic insurance paradigms within Nigeria and beyond.