The Bureau of Public Enterprises (BPE) on Wednesday inaugurated the Project Delivery Team (PDT) tp work towards 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 of the task-team was performed by the Acting Director General of the BPE, Ignatius Ayewoh in Abuja.
The Acting DG said this strategic initiative was aimed at enhancing the efficiency, management, and capitalization of the two critical agricultural institutions.
He said the inauguration of the team marked 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, he said, stemmed 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 Executive Council of the Federation (FEC) and the National Council on Privatization (NCP).
Mr. Ayewoh highlighted the importance of this strategic initiative for Nigeria’s agricultural sector, saying: “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 of NAIC specifically expressed her gratitude to the Acting DG of the BPE and the MD of NIRSAL for their commitment to this point.
She highlighted the importance of the recapitalisation of NAIC, as the organization was bugged down by huge financial indebtedness.
Adequate recapitalisation, she said, would enable the organization to fulfill its mandate and achieve the “Food Security” programme of the Federal Government.
Also, she 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 BPE & NAIC for their commitment, adding that insurance for the sector was only a pillar among the five key pillars of NIRSAL, namely Insurance, risk sharing, technical assistance, rating mechanism, and bank Incentive mechanism.
Consequently, he assured the PDT of NIRSAL’s unwavering support in achieving the “Food Security” goals of the Federal Government.
The members of the PDT, chaired by Mr. Toibudeen Oduniyi of the BPE, include 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.
Ayewoh expressed confidence in the successful execution of this initiative, which he said aligned with President Bola Ahmed Tinubu’s administration’s objectives of achieving food security and fostering a robust agricultural sector.
