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Tuesday, February 7, 2023

IFC and ARC Will Collaborate to Establish in Nigeria a Low-Cost, Accessible, and Long-Term Agricultural Insurance Industry

It will go a long way toward assisting Nigeria with its long-awaited yawning for food security

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Hamzat Ibrahim Abaga
Hamzat Ibrahim Abaga
Hamzat Ibrahim Abaga is a graduate of Mass Communication and aspiring investigative journalist.

NIGERIA. LAGOS STATE: The International Finance Corporation (IFC) and Africa Reinsurance Corporation (Africa Re) have put modalities in place to help Nigeria achieve its objective of food security in the country through a secure agricultural insurance platform.

If duly implemented, the partnership will go a long way in aiding the farmers through environmental risks like drought, floods, erratic rainfall, and other natural disasters.

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During the signing of the partnership agreement in Lagos, the Deputy Managing Director/Chief Operating Officer, Africa, Re. Ken Aghoghovbia stated that if the program is implemented, it will go a long way toward assisting Nigeria with its long-awaited yawning for food security and serve as an alternative for African Economic Development.

Photo Credit: Instagram

According to Aghoghovbia, the idea was brought to help and create access for smallholder farmers to have easy access to affordable agricultural loans and to help and reduce the danger associated with climate change and protect the farmers from any risk associated with farming.

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Before now, indemnity-based products were a standard feature. These products became riddled with high administration costs, and the inherent fraud risks made it difficult for underwriters to implement, Aghoghovbia added.
Aghoghovbia expresses happiness for partnering with IFC to assist Nigerian industries in making the right decision when it comes to the issue of insurance for smallholder farmers.

In his remark, IFC Country Manager for Nigeria, Eme Essien, said that his organization is ready to help get access to affordable and right agricultural insurance and will also aid in implementing a sustainable agricultural insurance industry in the country.

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However, it will require Nigeria’s adequate commitment from agencies like the National Insurance Commission (NAICOM), who should always embrace developmental ideas to help the farmers in risk management.

Africa Re and IFC are members of the World Bank Groups, Pan-African reinsurance organization, and IFC’s Global Index Insurance Facility, whose primary aim is to help countries with agricultural insurance products and further strengthen their level of insurance.

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