Nigerian Government Launches Initiative to Reform Key Agricultural Institutions
Federal Government Launches Initiative to Reform Key Agricultural Institutions
On Wednesday, the Federal Government inaugurated a project delivery team tasked with the recapitalisation and full commercialisation of the Nigerian Agricultural Insurance Corporation (NAIC) and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL). This initiative aims to enhance the efficiency, management, and capitalisation of these critical agricultural institutions.
Acting Director-General of the Bureau of Public Enterprises (BPE), Ignatius Ayewoh, inaugurated the team in Abuja, on behalf of the Federal Government. A statement issued by Amina Othman, Head of Public Communications at BPE, outlined that this move marks a significant milestone in the ongoing efforts to reform and reposition NAIC and NIRSAL to better serve Nigeria’s agricultural sector.
“The recommendations for this reform stem from the Presidential Committee on Restructuring and Rationalisation of Federal Government Parastatals, Commissions, and Agencies, also known as the Orosanye Committee, and have been endorsed by the Federal Executive Council and the National Council on Privatisation,” the statement explained.
In his remarks, Ayewoh emphasised the importance of this initiative for Nigeria’s agricultural sector. “Our goal is to create a strong, efficient, and well-managed organisation that will mitigate risks in the agricultural value chain, ensuring a secure environment for farmers and investors alike,” he stated.
Abbas Masanawa, Managing Director of NIRSAL, expressed gratitude to the leaders of both BPE and NAIC for their dedication to the task. He highlighted that insurance is one of the five key pillars of NIRSAL, alongside risk sharing, technical assistance, rating mechanisms, and bank incentive mechanisms. Masanawa assured the project delivery team of NIRSAL’s unwavering support in achieving the Federal Government’s food security goals.
The project delivery team, chaired by Mr Toibudeen Oduniyi of the BPE, includes representatives from key stakeholders such as the National Insurance Commission, the Central Bank of Nigeria, the Federal Ministry of Agriculture and Food Security, and the Nigerian Agricultural Development Fund. The team is mandated to oversee the reform process, including appointing a transaction adviser to conduct due diligence and develop a comprehensive framework for the recapitalisation and commercialisation of NAIC and NIRSAL.
The terms of reference for the project delivery team include reviewing and recommending improvements to existing acts, policies, and regulations, and proposing institutional and organisational changes to enhance the efficiency of NAIC. Additionally, the team will advise on legal and regulatory frameworks for successful commercialisation, conduct status reviews of NAIC and NIRSAL to inform stakeholders of current conditions, and prepare and submit comprehensive reports on the progress and recommendations of the transaction adviser, among other responsibilities.
Ayewoh expressed confidence in the successful execution of the initiative, stressing that it aligns with President Bola Tinubu’s administration objectives of achieving food security and fostering a robust agricultural sector.
