Communiqué issued at the end of the Stakeholders Workshop on Legal and Regulatory Frameworks for Agricultural Insurance Reform in Nigeria.

Communiqué issued at the end of the Stakeholders Workshop on Legal and Regulatory Frameworks for Agricultural Insurance Reform in Nigeria – Protecting Nigeria’s Farmers from Climate Change, organised by the Central Bank of Nigeria, in collaboration with the International Centre for Energy, Environment & Development and the Embassy of the Federal Republic of Germany, February 27, 2012 in Abuja.

Preamble:

Considering the importance of the agricultural sector to food security, employment and economic growth, Concerned about the inadequate access to financial services to the sector, Acknowledging the increasing frequency of natural disasters caused by climate change, Aware of the role of insurance in protecting Nigeria’s farmers from these disasters and improving access to bank lending to the sector, Stakeholders representing the Federal Ministry of Agriculture, the insurance industry, the National Insurance Commission, the Central Bank of Nigeria, Nigerian Meteorological Agency, commercial banks, farmers, international experts, international agencies and NGOs met in Abuja, February 27 2012 and resolved the following:

  1. Nigeria must urgently expand the coverage of agricultural insurance to millions of farmers by creating a competitive and innovative agricultural insurance market.
  2. The National Insurance Commission affirms the right of private insurance companies to participate in the agricultural insurance market, with the exception of primary crop production as protected by the existing legislation.
  3. All stakeholders agree to a total deregulation of the agricultural insurance sector by amending the Nigerian Agricultural Insurance Corporation Act 1993.
  4. The Federal Ministry of Agriculture has already taken steps to establish a broad based stakeholder committee to facilitate the amendment of the Nigerian Agricultural Insurance Corporation Act 1993.
  5. NIRSAL/CBN is committed to working with all insurance stakeholders to improve levels of technical assistance and productive innovation in the market in order to ensure the success of the broader risk guarantees market.
  6. The Nigerian Agricultural Insurance Corporation is committed to expanding the growth of the agricultural sector and protecting Nigeria’s farmers from climatic and other risks. The future of this national company is bright. NAIC expresses its total support for ongoing reforms in the agricultural insurance sector.
  7. The insurance industry represented by several companies and the Nigeria Insurers Association affirms its willingness and capacity to fully participate in the emerging agricultural insurance market.
  8. Stakeholders agree that capacity building and expansion of weather monitoring infrastructure will be a pre-condition for developing the market for agricultural insurance in Nigeria.
  9. Stakeholders are committed to an accelerated implementation of these reforms in an open, inclusive and participatory manner with full consideration for the role of women in the agricultural sector.

Abuja, February 27, 2012

Jude Uzonwanne Ewah Otu Eleri Head, NIRSAL, Central Bank of Nigeria Director, ICEED Tel: 070 3372 0591 Tel: 080 3206 2040