Business
NAIC Boss Tasks Farmers On Insurance Cover
The Managing Director,
Nigerian Agricultural Insurance Corporation (NAIC), Mr Boade Opadokun has said that only about two million Nigerian farmers adequately insured their agricultural operations and out puts.
Opadokun, who expressed worry at the low rate at which Nigerian farmers embrace insurance disclosed that the corporations would introduce measures to increase the number of farmers with insurance cover to five million by the end of the current financial period.
He noted that some losses are peculiar to farmers and also hinder their production, prompting the federal government to establish the Nigerian Agriculture Insurance scheme in 1987.
The Managing Director noted that the scheme later became incorporated in 1988 and became the Nigerian Agricultural Insurance Corporation by the enabling Act 37 of 1993 with the aim of providing insurance cover for farmers.
Some of the objectives of NAIC included making investment in the sector more attractive through efficient risk management and prompt claims payment and enhancing the adoption of improved farming practices to boost total agricultural production.
He stated that the scheme also enables farmers to enjoy credit from lending financial institutions and eliminate the need for emergency assistance usually provided by government during disasters.
Stressing that for crop production, farmers were more prone to drought and flood, Opadokun said by NAIC, government guarantees support to farmers as to help them increase production and manage risk elements associated their businesses.
The Managing Director revealed that the corporation conceptualised, designed and implemented a new distribution model for agricultural insurance for small-scale crop farmers participation in the Growth Enhancement Support (GES) scheme of the Federal Ministry of Agriculture and Rural Development.
“The operating model for this new business, which is electronically driven by a software designed for the GES programme, ensures that crop farmers entitled to subsidised inputs under the GES programme get a crop insurance cover worth at least N20,000 on their farms for a premium charge of N500,” the MD said.
He said about 500,000 farmers participated from 12 states during last dry season and that 51,300 farmers purchased the cover.
According to him, the corporation opened up series of discussions with overseas technical partners to establish the underwriting of weather index insurance in the country as part of its commitment to the research and development of new insurance products that would meet the needs of Nigerian farmers and mitigate the effect of climate change.
Chris Oluoh