Boost for Agricultural Lending: FG Forms Taskforce for NIRSAL, NAIA Recapitalization

The Federal Government inaugurated the project delivery team on Wednesday, 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).

This initiative aims to enhance the efficiency, management, and capitalization of these critical agricultural institutions, marking a significant milestone in ongoing efforts to reform and reposition them to better serve the agricultural sector.

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 by Amina Othman, Head of Public Communications at BPE, explained that these reforms are based on recommendations from the Presidential Committee on Restructuring and Rationalization of Federal Government Parastatals, Commissions, and Agencies, endorsed by the Federal Executive Council and the National Council on Privatization.

Ayewoh emphasized the importance of the initiative for Nigeria’s agricultural sector, stating, “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.”

Managing Director of NIRSAL, Abbas Masanawa, thanked the leaders of BPE and NAIC for their commitment, highlighting that insurance is one of the five key pillars of NIRSAL, which include risk sharing, technical assistance, rating mechanism, and bank incentive mechanism. Masanawa assured the Project Delivery Team (PDT) of NIRSAL’s unwavering support in achieving the Federal Government’s food security goals.

The PDT, chaired by Mr. Toibudeen Oduniyi of BPE, comprises representatives from key stakeholders such as the National Insurance Commission, Central Bank of Nigeria, Federal Ministry of Agriculture and Rural Development, and the Nigerian Agricultural Development Fund. 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 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, and preparing comprehensive progress reports and recommendations from the transaction adviser.

Ayewoh expressed confidence in the successful execution of the initiative, aligning with President Bola Tinubu’s administration objectives of achieving food security and fostering a robust agricultural sector.