Legal and Regulatory Frameworks for Agricultural Insurance Reform in Nigeria.

The Central Bank of Nigeria in collaboration with the International Centre for Energy, Environment & Development (ICEED) are working together to provide Nigeria’s farmers with protection against climate change through expansion of insurance services. In collaboration with the Embassy of the Federal Republic of Germany, these agencies are organising a workshop on legal and regulatory reforms to increase the coverage of agricultural insurance to Nigerian farmers.

Agriculture accounts for 42% of the Nigerian GDP and employs about 65% of labour. Over 90% of Nigeria’s farms are rain-fed. Today, climate change is one of the greatest threats to the country’s agriculture and efforts to reduce poverty.

Expansion of access to financial services is crucial in modernising agriculture and building resilience among farmers. However, less than 5% of total bank lending to the private sector goes to agriculture. And less than one percent of Nigeria’s farmers have access to insurance services. Scaling up agricultural insurance will assist in de-risking agricultural business and cover loss and damage arising from climate change. The Central Bank of Nigeria has responded to this challenge by setting up the Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL). NIRSAL provides measures for comprehensive reform of agricultural financing, including insurance services.

This workshop seeks to strengthen Nigeria’s efforts to develop and implement legal and regulatory reforms of agricultural insurance. It will provide a forum to share international best practices and ensure that reform efforts are based on a solid knowledge base. The workshop brings together representatives of the insurance industry, other financial institutions, the insurance regulator, representatives of agencies of government, international development organisations, agricultural cooperatives and civil society.

Lead Presenters:

  1. Matthew Troniak, Executive Director, Rural Agriculture Working Group, Making Finance Work for Africa, African Development Bank
  2. K. N. Rao, Chief Risk Officer, Agricultural Insurance Company of India Limited
  3. Peter Gross Business Development Manager, MicroEnsure, Ghana

The workshop will be opened by H.E. Mrs Dorothee Janetzke-Wenzel, Ambassador, Federal Republic of Germany.

The Event would be held at Kano Hall, Transcorp Hilton Hotel on February 27, 2012.

For more information, please contact: Ewah Eleri, Executive Director, International Centre for Energy, Environment & Development. Tel: +234 9 783 1151. Email: info@iceednigeria.org