The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) has introduced a new insurance product to cover the risks associated with post harvest losses of agricultural yields and market price risks for smallholder farmers.
The product, named NIRSAL Comprehensive Index Insurance (NCII) and specifically developed to protect farmers against risks along the agricultural value chain, was announced through a statement issued by the Head, Corporate Communications of NIRSAL, Ms. Anne Ihugba, on Sunday.
Specfically, she stated that the NCII was developed by the agency in conjunction with National Insurance Commission (NAICOM), National Agricultural Insurance Corporation (NAIC) and members of the consortium, including IGI, Leadway, Axa Mansard, Royal Exchange and Pula Advisors.
In addition, Ihugba pointed out that the newly unveiled product, which will commence immediately with a pilot phase of the NIRSAL’s operation in the CBN’s Anchor Borrowers Programme in the 2018 wet season farming, would address the fundamental risks associated with possible production shortfalls and the uncertainties of the marketplace.
She clarified further that unlike other insurance covers which are limited to yields, the NCII integrated yields, price index and life insurance in its coverage.
The Managing Director of NIRSAL, Mr. Aliyu Abdulhameede, was quoted as saying that the introduction of the insurance product was a proof of its commitment to grow the nation’s agriculture sector.
He said: “At NIRSAL, our focus is to make positive impact at key points of the agricultural value chains that can translate to significantly higher and sustained productivity, food security for the country. The new insurance product, an innovative form of revenue insurance is unique in Africa. It is also the first of such product to be achieved without government subsidies on the premium.
“The product is especially targeted at smallholder farmers, who are the most vulnerable segment in the agriculture sector and the Nigerian population as a whole.
“Leveraging on its 30 million dollars insurance facility, NIRSAL’s goal is to expand insurance products and coverage on agricultural lending across the entire value chain by growing coverage from about 0.5m to 3.8m primary producers”, the NIRSAL boss added.
