Determinants of Intention to Adopt Auto Insurance (Takāful) Business Among Vehicle Owners in Nigeria

Main Article Content

Shuaib Ndagi Sayedi


Despite the recent surge in global growth and the increasing role played by the Islamic financial system, particularly Takāful, within the international financial landscape, there has been limited attention directed towards Takāful in Nigeria. This study aims to identify the factors influencing the intention of vehicle owners to adopt Auto Insurance (specifically Takāful) in Nigeria. Employing a survey research design, the study targeted the population of twelve million registered vehicles in Nigeria, with a sample size of four hundred (400) respondents. Data were collected using a questionnaire, and multiple regression analysis was conducted using SPSS version 26 to test the research hypotheses. The regression results revealed that awareness, relative advantage, and social influence significantly influence vehicle owners' intention to adopt Auto Insurance (Takāful) in Nigeria. However, factors such as religiosity, perceived compatibility, perceived complexity, and perceived risk did not exhibit a significant influence on vehicle owners' intention to adopt auto insurance in Nigeria. The study recommends robust public awareness campaigns by each auto Takāful-insurance company to highlight the advantages of Takāful products and services over conventional insurance. Additionally, it suggests that the government formulate supportive laws to encourage the establishment of more Takāful companies in Nigeria, given the limited presence of such entities in the country.

Article Details

How to Cite
Sayedi, S. N. (2024). Determinants of Intention to Adopt Auto Insurance (Takāful) Business Among Vehicle Owners in Nigeria. Journal of King Abdulaziz University: Islamic Economics, 37(1), 101–115. Retrieved from
English Language