FG Selects Team To recapitalize NIRSAL And NAIA

By Clement Alphonsus
 Ignatius Ayewoh (Director-General, the Bureau of Public Enterprises)
Ignatius Ayewoh (Director-General, the Bureau of Public Enterprises)

The Federal Government, on Wednesday, has inaugurated the team tasked with the recapitalisation and full commercialisation of the Nigerian Agricultural Insurance Corporation, and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending.

It stated that this would enhance the efficiency, management, and capitalisation of the critical agricultural institutions, adding that the inauguration marked a significant milestone in the ongoing efforts to reform and reposition NAIC and NIRSAL to better serve the agricultural sector.

According to a statement issued by the Head, Public Communications, BPE, Amina Othman, the acting Director-General, the Bureau of Public Enterprises, Ignatius Ayewoh, inaugurated the team on behalf of the Federal Government in Abuja.

BPE explained in the statement, “The recommendations for this reform stem from the Presidential Committee on Restructuring and Rationalisation of Federal Government Parastatals, Commissions, and Agencies, also known as the Orosanye Committee, and have been endorsed by the Federal Executive Council and the National Council on Privatisation."

Ayewoh also explained the importance of this initiative for Nigeria’s agricultural sector.

He said, “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."

The Managing Director, NIRSAL Abbas Masanawa, has applauded the leaders of both BPE and NAIC for their commitment to the task.

He also stated that insurance was only a pillar among the five key pillars of NIRSAL, as he outlined them to include insurance, risk sharing, technical assistance, rating mechanism; and bank incentive mechanism.

Similarly, he assured the PDT of NIRSAL’s commitment in achieving the food security goals of the Federal Government.

The PDT, chaired by Mr Toibudeen Oduniyi of the BPE, includes various representatives from key stakeholders; the National Insurance Commission, the Central Bank of Nigeria, Federal Ministry of Agriculture and Food Security, and the Nigerian Agricultural Development Fund.

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.