NAIC Targets 15m Farmers For Crop, Livestock Insurance

Agric Minister Approves N1Bn For Re-structuring

LIVESTOCK and crop farmers nationwide are in for a better deal now that the Nigerian Agricultural Insurance Company (NAIC) has got approval for $5m from Dr. Akinwumi Adesina, Minister of Agriculture and Rural Development.

This, Adesina, said this would assist the insurance company support its institutional reforms, strengthen operations and roll out of agricultural insurance products. He said that about 15m farmers are expected to get the products in the next three years.
The Minister, who was represented by Mr. Olalekan Quadry, south-west regional director of the Ministry at the commissioning of the new Lagos Zonal Headquarters of the company, revealed the need to reposition the company.

He said government understood the importance of risk management in agricultural investment, therefore decided to build its capacity and prepare it to effectively meet the insurance needs of the agricultural sector.

“As we continue to modernise the agricultural sector, we will ensure that farmers are protected from the effects of climate change. The devastating floods of 2012 was a wake up call for the need to develop policies and risk transfer systems to protect government and farmers from effects of climate change,” the minister said.

In order to address the challenge posed by the floods, Adesina recalled that President Jonathan approved the launch of the flood recovery food production policy and produce food massively in the dry season. “The national dry season policy, the first in Nigeria’s history, allowed Nigeria to recover from the impacts of the flood. Nigeria did not experience a food crisis or famine.”

The Minister directed that NAIC ensure that it works with global reinsurance companies to make agricultural insurance in Nigeria of global standard.

At present, he revealed, NAIC is undergoing these exercises under a new MD/CEO, Mr. Bode Opadokun to ensure that it delivers flawless and efficient risk management services to all the participants in the agricultural sector.

The Minister said, “government is supporting the development of weather index insurance products for farmers, improving access to climate information and expansion of agro-metereological stations. Both agricultural insurance and reinsurance are being rapidly developed.”