Recapitalisation/Commercialisation: BPE Inaugurates Project Team for NAIC, NIRSAL

Ndubuisi Francis in Abuja

The Bureau of Public Enterprises (BPE) has inaugurated the Project Delivery Team (PDT) for the recapitalisation and full commercialisation of the Nigerian Agricultural Insurance Corporation (NAIC) and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).

The inauguration marked a significant milestone in the government’s ongoing efforts to reform and reposition both or and NIRSAL to better serve the agricultural sector.

The recommendations for the reform stemmed from the Presidential Committee on Restructuring and Rationalisation of Federal Government Parastatals, Commissions and Agencies, otherwise known as the Orosanye Committee, which had already been endorsed by the Federal Executive Council (FEC) and the National Council on Privatisation (NCP).

The Acting BPE Director General, Ignatius Ayewoh, who inaugurated the PDT in Abuja, noted that the strategic initiative was to enhance the efficiency, management and capitalisation of the critical agricultural institutions.

 According to a statement issued by the BPE Head of Public Communications, Amina Tukur Othman, the acting BPE DG highlighted the importance of this initiative for Nigeria’s agricultural sector.

“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,” Ayewoh stated.

He expressed confidence in the successful execution of the initiative, which he said aligns with President Bola Tinubu administration’s objectives of achieving food security and fostering a robust agricultural sector.

 In her remarks, the Managing Director of NAIC, Folashade Joseph, specifically expressed gratitude to Ayewoh and the Managing Director of NIRSAL for their commitment to this point.

She highlighted the importance of the recapitalisation of NAIC, adding that the organisation was deeply indebted.

According to her, adequate recapitalisation would enable the organisation to fulfill its mandate and achieve the food security programme of the federal government.

Joseph, also emphasised the need for collaboration by stakeholder agencies to achieve the purpose for which the committee was constituted. 

The Managing Director, NIRSAL Abbas Masanawa in his remarks, thanked the leaders of both agencies (BPE & NAIC) for their commitment.

He emphasised that insurance was only a pillar among the five key pillars of NIRSAL, which includes 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 goal of the federal government.

The PDT, chaired by Mr. Toibudeen Oduniyi of the BPE, has 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 recapitalisation and commercialisation 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 organisational changes for the enhanced efficiency of NAIC; advising on legal and regulatory frameworks for successful commercialisation; conducting status reviews of NAIC and NIRSAL to inform stakeholders of current conditions; and preparing and submitting comprehensive reports on the progress and recommendations of the Transaction Adviser.