Mr. Ignatius Ayewoh, Acting Director-General of the Bureau of Public Enterprises (BPE), has inaugurated the Project Delivery Team (PDT) for the recapitalisation and full commercialisation of the Nigerian Agricultural Insurance Corporation (NAIC) and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) in line with the recommendations of the Oronsaye report.
This initiative aims to improve the efficiency, management, and capitalisation of the key agricultural institutions.
According to a statement by Amina Othman, Head of Public Communications at BPE, this marks a significant step in the government’s efforts to reform and enhance the agricultural sector.
It reads, “The recommendations for the reform stem from the Presidential Committee on Restructuring and Rationalisation of Federal Government Parastatals, Commissions, and Agencies, also known as the
Orosanye Committee. It has also been endorsed by the Federal Executive Council (FEC) and the National Council on Privatisation (NCP).”“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.”
She mentioned that Ayewoh expressed confidence in the initiative’s success, aligning with President Bola Tinubu’s goals of achieving food security and strengthening the agricultural sector.
Othman reported that Folashade Joseph, Managing Director of NAIC, had expressed gratitude to Ayewoh and the Managing Director of NIRSAL for their dedication.
Key pillars of NISRAL
Joseph emphasized the importance of NAIC’s recapitalisation due to its significant debt, which is crucial for fulfilling its mandate and supporting the Federal Government’s food security program.
She also highlighted the need for collaboration among stakeholder agencies.
Othman stated that NIRSAL’s Managing Director, Abbas Masanawa, had thanked BPE and NAIC leaders for their commitment.
Masanawa also stressed that insurance is one of NIRSAL’s five key pillars, including risk sharing, technical assistance, rating mechanism, and bank incentive mechanism. He assured the PDT of NIRSAL’s unwavering support in achieving the government’s food security goals.
The PDT, chaired by Mr. Toibudeen Oduniyi of the BPE, includes representatives from key stakeholders such as the National Insurance Commission (NAICOM) and the Central Bank of Nigeria (CBN).
Terms of reference of the committee
Othman stated, “Others are the Federal Ministry of Agriculture and Food Security (FMAFS) and the Nigerian Agricultural Development Fund (NADF). The terms of reference for the PDT include reviewing and recommending improvements to existing acts, policies, and regulations; proposing institutional and organisational changes for the enhanced efficiency of NAIC.”
“Others are advising on legal and regulatory frameworks for successful commercialisation; and conducting status reviews of NAIC and NIRSAL to inform stakeholders of current conditions.”
Othman said the team was mandated to oversee the reform process, including the appointment of a Transaction Adviser to conduct due diligence and develop a comprehensive framework for the recapitalisation and commercialisation of NAIC and NIRSAL.