The Acting Director-General of Bureau of Public Enterprises (BPE), Ignatius Ayewoh, on Wednesday inaugurated the Project Delivery Team (PDT) 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).
A statement issued by the Bureau’s Head, Public Communications, Amina Tukur Othman, indicated that the initiative aims to enhance the efficiency, management, and capitalization of these critical agricultural institutions and marks a milestone in the government’s ongoing efforts to reform and reposition NAIC and NIRSAL to better serve the agricultural sector.
She stated that the recommendations for this reform derived from the Presidential Committee on Restructuring and Rationalization of Federal Government Parastatals, Commissions, and Agencies, also known as the Orosanye Committee, and had been endorsed by the Federal Executive Council (FEC) and the National Council on Privatization (NCP).
In his remarks, Ayewoh highlighted the importance of this initiative for Nigeria’s agricultural sector, adding that the BPE’s “goal is to create a strong, efficient, and wellmanaged organization that will mitigate risks in the agricultural value chain, ensuring a secure environment for farmers and investors alike.”
In her remarks, the MD of NAIC commended the Acting Director-General of the Bureau and the Managing Director of NIRSAL for their commitment to this point.
She highlighted the importance of the recapitalisation of NAIC, as the organisation is financially hugely indebted. Adequate recapitalisation would enable the organisation to fulfill its mandate and achieve the “Food Security” program of the Federal Government. She also emphasized the need for collaboration by stakeholder agencies to achieve the purpose for which the committee was constituted.
The Managing Director of NIRSAL, Abbas Masanawa, also thanked the leaders of both agencies (BPE & NAIC) for their commitment, noting that insurance is only a pillar among the five key pillars of NIRSAL, namely Insurance, risk sharing, technical Assistance, Rating mechanism; and Bank Incentive mechanism.
He assured the PDT of NIRSAL’s support in achieving the “Food Security” goals of the Federal Government.
The PDT chairman is Mr. Toibudeen Oduniyi of the BPE, while the members comprised representatives from 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 PDT Terms of Reference (ToR) 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; and Preparing and submitting comprehensive reports on the progress and recommendations of the Transaction Adviser.
The BPE boss expressed optimism in the successful execution of this initiative, which aligns with present administration’s objectives of achieving food security and fostering a robust agricultural sector.
