Public Perception of Insurance in Sokoto Metropolis: A Study of Retail Consumers

This research examines public perception of insurance among retail consumers in Sokoto metropolis, North West Nigeria. Insurance penetration in Nigeria's northwestern states remains among the lowest nationwide, influenced by socioeconomic conditions, cultural practices, and religious attitudes toward conventional risk financing instruments. Understanding how residents of Sokoto perceive insurance products is essential for designing culturally appropriate outreach and product development strategies. This study employs a survey research design with data collected from 350 adult residents in three urban districts of Sokoto metropolis, selected through cluster random sampling. The questionnaire instrument measures five dimensions of insurance perception: awareness, trust, affordability, relevance, and religious acceptability. The study also evaluates the potential demand for Takaful (Islamic cooperative insurance) products as an alternative to conventional insurance among Muslim-majority respondents. Descriptive statistics and one-way analysis of variance (ANOVA) are applied to compare perceptions across demographic subgroups. Preliminary analysis indicates that perceptions are largely negative, shaped by distrust in financial institutions and limited exposure to insurance products. The study highlights the importance of community engagement strategies and Takaful market development as viable pathways to improving insurance inclusion in Sokoto. Findings contribute to literature on insurance behavioral economics in predominantly Muslim communities in Nigeria. Keywords: Public Perception, Insurance, Sokoto, Takaful, Consumer Behavior.