The idea of Takaful (Islamic insurance) emerged during the industrial age of the 1900s, driven by shared individual interests. While Takaful made its way to Nigeria in 2005, it was not until 2013 that the National Insurance Commission (NAICOM) released the operational guidelines for Takaful practices. Currently, the number of insurance companies licensed to operate in Nigeria has hit 67 including 4 Takaful companies, yet the overall insurance penetration remains among the lowest globally. Nonetheless, many Nigerians, especially low-income business owners in marketplaces, are hesitant to engage with conventional insurance due to religious beliefs and local conditions. This reluctance complicates the ability to overcome challenges and revive businesses after incidents like fire outbreaks in the markets. The paper consequently tries to explore the possibilities of micro-takaful as a route through which low-income entrepreneurs in markets across Kano State can be helped, encouraged and compensated in accordance with the teachings of Islam. Information was gathered from a review of relevant literatures. To promote economic growth and development of low-income entrepreneurs, it is recommended that awareness should be raised about Takaful and there is a need to set up a micro-takaful system to cater for their peculiarities.