Inauguration of a Project Delivery Team for the Recapitalization and Full Commercialization of NAIC AND NIRSAL

The Acting Director General of the Bureau of Public Enterprises (BPE), Ignatius O.
Ayewoh, today 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). This strategic initiative aims to enhance the
efficiency, management, and capitalization of these critical agricultural
institutions.
The inauguration ceremony marks a significant milestone in the government’s
ongoing efforts to reform and reposition NAIC and NIRSAL to better serve the
agricultural sector. The recommendations for this reform stem from the
Presidential Committee on Restructuring and Rationalization of Federal
Government Parastatals, Commissions, and Agencies, also known as the
Orosanye Committee, and have been endorsed by the Federal Executive
Council (FEC) and the National Council on Privatization (NCP).
In his remarks, Mr. Ayewoh highlighted the importance of this initiative for
Nigeria’s agricultural sector. “Our 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,” he stated.
The MD, NAIC specifically expressed her gratitude to the AG.DG, BPE and the
MD, 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, NIRSAL Abbas U. Masanawa in his remark, thanked the
leaders of both agencies (BPE & NAIC) for their commitment. He emphasizedthat insurance was only a pillar among the five key pillars of NIRSAL, Insurance, risk sharing, technical Assistance, rating Mechanism; and bank Incentive Mechanism. He, consequently, assured the PDT of NIRSAL’s unwavering support in achieving the “Food Security” goals of the Federal Government.

The PDT, chaired by Mr. Toibudeen Oduniyi of the BPE, includes representatives from key stakeholders such as 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 terms of reference for the PDT 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.

• Preparing and submitting comprehensive reports on the progress and recommendations of the Transaction Adviser.

Mr. Ayewoh concluded by expressing confidence in the successful execution of this initiative, which aligns with President Bola Ahmed Tinubu’s administration objectives of achieving food security and fostering a robust agricultural sector.