The Federal Government, yesterday, disclosed that it was working with a Kenyan firm to develop innovative insurance products for livestock in order to end the incessant herdsmen and farmers clashes in the country.
The Managing Director of Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL), Mr. Aliyu Abdulhameed, revealed this while speaking at a workshop on Index-Based Agriculture Insurance (IBAI).
Abdulhameed also disclosed that 25,000 farmers had subscribed to IBAI scheme.
The MD noted that in addition to the partnership with the Kenyan firm, the Federal Government had recently signed partnership agreements with a leading Moroccan agricultural insurance as well as a reinsurance company to provide technical support in expanding the range of agricultural insurance products in Nigeria.
He said, “NAICOM has been instrumental in achieving this feat. Today, we are happy to report that we have an index-based yield insurance product that covers risks from disease, weather, natural disasters and several other external factors. Since the launch of the insurance product, six months ago, over 25,000 Smallholder farmers have subscribed to it.”
Also speaking, Commissioner for Insurance, Alhaji Mohammed Kari, said the Index Insurance was a new concept in Nigeria and in sub-Sahara Africa.
Kari added that it was pertinent to build capacity to enhance progress in the drive to achieve efficiency and effectiveness in underwriting index-based agricultural insurance in Nigeria.