Acting director-general of the Bureau of Public Enterprises (BPE), Mr. Ignatius Ayewoh, has inaugurated the Project Delivery Team (PDT) aimed at the recapitalisation and full commercialisation of both the Nigerian Agricultural Insurance Corporation (NAIC) and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).
The initiative, outlined by Amina Othman, Head of Public Communications at BPE, seeks to bolster the efficiency, management, and capitalization of these crucial agricultural institutions, marking a significant milestone in the government’s ongoing efforts to reform and reposition NAIC and NIRSAL to better serve the agricultural sector.
These reforms, as per Othman’s statement, are rooted in recommendations from the Presidential Committee on Restructuring and Rationalization of Federal Government Parastatals, Commissions, and Agencies, popularly known as the Orosanye Committee, and have received endorsement from the Federal Executive Council (FEC) and the National Council on Privatization (NCP).
Ayewoh expressed the objective of establishing robust, well-managed organisations that mitigate risks in the agricultural value chain, aligning with the administration’s focus on achieving food security and fostering a vibrant agricultural sector under President Bola Tinubu’s leadership.
Managing director of NAIC, Folashade Joseph, echoed Ayewoh’s sentiments, emphasising the importance of recapitalisation for NAIC to fulfill its mandate and contribute to the federal government’s food security program. Joseph also stressed the need for collaboration among stakeholder agencies to achieve the committee’s goals.
Managing director of NIRSAL, Abbas Masanawa, commended the commitment of BPE and NAIC leaders, emphasising the pivotal role of insurance in NIRSAL’s strategy to bolster food security. He assured unwavering support from NIRSAL in achieving the federal government’s food security objectives.
The PDT, chaired by Mr. Toibudeen Oduniyi of BPE, comprises representatives from key stakeholders such as the National Insurance Commission (NAICOM), the Central Bank of Nigeria (CBN), the Federal Ministry of Agriculture and Food Security (FMAFS), and the Nigerian Agricultural Development Fund (NADF).
Tasked with overseeing the reform process, the PDT is mandated to appoint a transaction adviser to conduct due diligence and develop a comprehensive framework for the recapitalisation and commercialisation of NAIC and NIRSAL.
Their responsibilities also include reviewing and recommending improvements to existing acts, policies, and regulations, proposing institutional and organisational changes, and providing comprehensive progress reports and recommendations.
