Participatory Factors Influencing Preference for Islamic Insurance (Takaful) among Muslims in Lagos State, Nigeria

Abstract

Islamic insurance, commonly known as Takaful, has been promoted as a Shariah-compliant alternative to conventional insurance. This study examines how participatory factors and perceived market barriers shape preference for Takaful among selected Muslims in Lagos State, Nigeria. Anchored on the Theory of Planned Behaviour and Consumer Behaviour Theory, the study adopted a cross-sectional survey design. Data were collected through a structured questionnaire administered to adult Muslim respondents with varying levels of awareness and exposure to insurance services. Of the 251 questionnaires distributed, 187 valid responses were analysed using descriptive statistics, Friedman rank tests and simple linear regression. The results show that belief in and awareness of Islamic doctrine ranked highest among the determinants of preference, followed by income level and government regulation. Poor awareness, inadequate guidelines and limited accessibility ranked as the most severe participatory barriers. Regression results further indicate that participatory factors have a positive and statistically significant influence on preference for Islamic insurance (β = .518, t = 8.234, p < .001), explaining 27.6% of the variance in Takaful preference. The study contributes to Islamic insurance scholarship by clarifying the hierarchy of religious, economic and institutional factors shaping preference in a Nigerian urban context. It recommends sustained public education, stronger regulatory communication, product simplification and trust-building strategies by Takaful operators.