The Acting Director General of the Bureau of Public Enterprises (BPE), Ignatius Ayewoh, has inaugurated the Project Delivery Team (PDT) tasked with the recapitalization and full commercialization of the Nigerian Agricultural Insurance Corporation (NAIC) and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).
The inauguration ceremony marks a significant milestone in the government’s ongoing efforts to reform and reposition NAIC and NIRSAL to better serve the agricultural sector. The recommendations for this reform stem from the Presidential Committee on Restructuring and Rationalization of Federal Government Parastatals, Commissions, and Agencies, also known as the Orosanye Committee, and have been endorsed by the Federal Executive Council (FEC) and the National Council on Privatization (NCP).
Amina Tukur Othman, Head, Public Communications at the BPE in a statement pointed out that the strategic initiative aims to enhance the efficiency, management, and capitalization of these critical agricultural institutions.
In his remarks, Mr. Ayewoh highlighted the importance of this initiative for Nigeria’s agricultural sector. “Our goal is to create a strong, efficient, and well-managed organization that will mitigate risks in the agricultural value chain, ensuring a secure environment for farmers and investors alike,” he stated.
The MD, NAIC Folasade Joseph specifically expressed her gratitude to the AG.DG, BPE and the MD, NIRSAL for their commitment to this point and highlighted the importance of the recapitalisation of NAIC, as the organisation is financially hugely indebted.
Adequate recapitalisation would enable the organisation to fulfill its mandate and achieve the “Food Security” program of the Federal Government. She also emphasized the need for collaboration by stakeholder agencies to achieve the purpose for which the committee was constituted.
The Managing Director, NIRSAL Abbas U. Masanawa in his remark, thanked the leaders of both agencies (BPE & NAIC) for their commitment. He emphasized that insurance was only a pillar among the five key pillars of NIRSAL, Insurance, risk sharing, technical Assistance, rating Mechanism; and bank Incentive Mechanism. He then assured the PDT of NIRSAL’s unwavering support in achieving the “Food Security” goals of the Federal Government.
The PDT, chaired by Mr. Toibudeen Oduniyi of the BPE, includes representatives from key stakeholders such as the National Insurance Commission (NAICOM), Central Bank of Nigeria (CBN), Federal Ministry of Agriculture and Food Security (FMAFS), and the Nigerian Agricultural Development Fund (NADF). The team is mandated to oversee the reform process, including the appointment of a Transaction Adviser to conduct due diligence and develop a comprehensive framework for the recapitalization and commercialization of NAIC and NIRSAL.
The terms of reference for the PDT include: Reviewing and recommending improvements to existing acts, policies, and regulations; Proposing institutional and organizational changes for the enhanced
efficiency of NAIC; Advising on legal and regulatory frameworks for successful commercialization; Conducting status reviews of NAIC and NIRSAL to inform stakeholders of current conditions.; Preparing and submitting comprehensive reports on the progress and recommendations of the Transaction Adviser.
Mr. Ayewoh concluded by expressing confidence in the successful execution of this initiative, which aligns with President Bola Ahmed Tinubu’s administration objectives of achieving food security and fostering a robust agricultural sector.
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