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  • NAIC insures ₦1.014tr in agricultural projects in five years

    NAIC insures ₦1.014tr in agricultural projects in five years

    The Nigerian Agricultural Insurance Corporation (NAIC) has provided insurance coverage worth ₦1.014 trillion to agricultural projects across Nigeria in the past five years.

    This level of insurance coverage underscores NAIC’s commitment to strengthen the nation’s agricultural sector and support farmers through risk management solutions.

    Speaking at a meeting with a delegation from the United Arab Emirates (UAE) in Abuja, Mrs. Folashade Joseph, Managing Director of NAIC, revealed that approximately 1.25 million farmers received insurance coverage, generating ₦8.56 billion in insurance premiums during this period.

    The Corporation also settled claims totaling ₦3.08 billion out of ₦3.88 billion incurred, highlighting its role in mitigating risks for farmers.

    Mrs. Joseph emphasized the Corporation’s extensive outreach and education efforts, which have reached over 516,000 farming communities and trained 129,000 agricultural value chain actors across Nigeria’s 36 states and the Federal Capital Territory (FCT).

    These efforts she said have created a multiplier effect in the economy, with trained farmers passing on their knowledge, thereby boosting agricultural productivity.

    Read Also: Nigeria, others attracted $69.1b greenfield projects, others in 2023 –Report

    “The Corporation therefore remains committed to its mission of enhancing agricultural productivity, thereby achieving food security and contributing to the overall growth and development of Nigeria,” she said.

    Mrs. Joseph noted that NAIC’s activities “align” with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which focuses on achieving food security, economic growth, job creation, poverty eradication, inclusivity, security, and anti-corruption. The Corporation is eager to explore collaborations with progressive agencies and organizations to build on its successes.

    The NAIC boss praised the UAE for its achievements in the agricultural sector and expressed NAIC’s readiness to partner with them, particularly in adopting innovative farming techniques such as hydroponics, vertical farming, and controlled environment agriculture. These advancements she said have transformed UAE’s agriculture, promoting sustainable development and enhancing food security.

    “The Corporation is ready to engage in fruitful discussions to identify concrete opportunities for partnership with the UAE,” Mrs. Joseph said, emphasizing the potential for mutual benefits and advancements in agricultural development and food security for both nations.

    She assured the UAE delegation, led by Khalid Al Mannaei, CEO of the Vice President’s Office for Political Affairs, that foreign investments in Nigeria are safe with NAIC as the country’s leading agricultural insurer. NAIC will continue to play a pivotal role in providing risk management solutions to farmers, agribusinesses, and stakeholders across the agricultural value chain.

    “Our comprehensive range of insurance products and services are designed to mitigate the impact of various risks, including crop failure, livestock mortality, and property damage, thereby safeguarding the livelihoods and investments of our clients,” she stated.

    Joseph reiterated NAIC’s dedication to supporting initiatives that enhance food security and strengthen the resilience of Nigerian farmers, particularly smallholders.

    She expressed optimism about the potential for strategic collaboration with the UAE, believing that joint efforts can significantly advance agricultural development and food security in both countries.

    Al Mannaei revealed the UAE’s interest in forming partnerships with key players in Nigeria’s strategic sectors, including agriculture.

    He noted that their visit aims to explore opportunities for collaboration, culminating in bilateral agreements that will benefit the economies of both nations, particularly in agricultural production and food security initiatives.

  • NAIC: our aim is to protect farmers

    The provision of subsidy for agricultural insurance premium is aimed at protecting farmers and complementing the efforts of the Federal Government on financial inclusion, the Managing Director/Chief Executive Officer (CEO), Nigerian Agricultural Insurance Corporation (NAIC), Mrs. Folashade Joseph, has said.

    Joseph, who spoke with reporters in Johannesburg, South Africa said the corporation is making farmers happy and comfortable.

    She said while the Federal Government, through the Central Bank of Nigeria (CBN), is providing soft loans to farmers, NAIC is complementing this effort by insuring farmers, to incorporate them in the financial system.

    She stressed that financial inclusion ensures that more people, especially those in the informal sector, were brought into the financial system, to aid proper economic planning, enhances savings culture and increases funds in the banking sector, which contributes to the healthiness of the entire financial sector value-chain.

    Read Also: NAIC pays N464m claims to farmers

    She said: “Agriculture contributes more to the nation’s Gross Domestic Product (GDP). NAIC is specifically created to cater for the entire agricultural value-chain of which farmers are major. We aim to boost the economy through agriculture. Agriculture has contributed much to the GDP in the last few years.’’

    “On the part of NAIC, 80 per cent of farmers are engaging in small scale farming. And it is very important to take care of these farmers against risks that may arise from farming. The farmers are financially included because they access loans. Though federal government has done a lot through CBN in this regards, it is our role to support this process and make farmers happy and comfortable.

    To increase the number of agricultural insurance policyholders, the corporation had, and is still embarking on sensitisation of farmers across the country on the need to protect their farmlands, and equipments through agric insurance products offered by NAIC.”

    Listing the barriers of insurance penetration which is also affecting adoption of agric insurance products, she said, culture, religious beliefs are challenges as the small hold farmers do believe everything is an act of God.

  • NAIC pays N464m claims to farmers

    The  Nigerian Agricultural Insurance Corporation (NAIC) has paid N464 million claims in the first quarter of the year to its insured farmers across the country.

    In statement, its Managing Director, Mrs. Folashade Joseph  said prompt payment of claims has always been the cardinal principle of NAIC.

    She stated that NAIC was established by the Federal Government to shield farmers from the adverse effects of natural disasters.

    As a responsible player in the agric insurance space, we, at NAIC, believe that prompt payment of claims is the ultimate goal of any insurance business.

    The corporation provides insurance cover to all categories of operators, whether small, medium or large scale across the agricultural value chain, she added.

  • NAIC to pay flood-ravaged farmers, group

    THE Nigerian Agricultural Insurance Corporation (NAIC) has called on insured farmers and farmer groups affected by floods to inform its NAIC office of their travails for assistance.

    Its Managing Director, Mrs. Folashade Joseph made the call during a briefing tagged, “On-going flood damages to agricultural farms in various states of the country”.

    While sympathising with the affected farmers, she assured insured farmers and groups of its support.

    She urged the farmers to  minimise the untoward effects of the torrential rains and floods on their farms through taking an insurance cover.

    She sympathised with other farmers who suffered from losses from the floods but did not have NAIC cover and encouraged them to, take advantage of the agricultural insurance solutions of the corporation, in accordance with the government’s policies to protect farmers.

    Mrs. Joseph said apart from insuring the loss of crops from flood, NAIC provides insurance against crop losses arising from fire, lightening, drought and pests. Also listed are associated  risks of death of, or injury to livestock caused by accident, disease, fire, lightening, storm or flood.

    She said the beauty is that the assessed premium paid to NAIC is subsidised. The subsidy is 50 per cent reimbursable to the corporation by the federal and state governments.

    ‘’All these are efforts to provide a secure future to farmers and eliminate the need for unpredictable ad-hoc assistance when insurable losses occur,” she added.

  • Binji is Acting MD, NAIC

    Agriculture and Rural Development, Minister Audu Ogbe, has confirmed the appointment of Bashir Haliru Binji as the Acting Managing Director/Chief Executive Officer (CEO) of the Nigerian Agricultural Insurance Corporation.

    The appointment took effect from January 2, this year.

    Binji’s appointment followed the resignation of the Managing Director, Bode Opadokun.

    Binji, who hails from Sokoto State, was until his appointment, the Executive Director Operations of the Corporation.

    He holds a Bachelor of Science in Management Studies. He is an Associate of the Chartered Insurance Institute of London, among other qualifications.

  • ‘We treat big and small farmers alike’

    ‘We treat big and small farmers alike’

    Twenty-six years ago, the Federal Government established the Nigerian Agricultural Insurance Corporation (NAIC) to provide cover for farmers at a subsidised rate to mitigate their losses. However, many farmers are yet to benefit from it, because of lack of awareness. NAIC’s Managing Director Mr Bode Opadokun, in this interview with OMOBOLA TOLU-KUSIMO, speaks on his plans to achieve the firm’s objectives and address its shortcomings.

    Despite being in existence for long, many farmers are not aware of NAIC. What is responsible for this?

    Insurance is not generally accepted and it is worse with agriculture. But it is a general problem and I would say, in terms of appreciation of the work and value of agric insurance, it is on the increase. Presently, the elite have taken insurance seriously. Gone are the days when insurers used claims and settlements to sell insurance. Today, what people are looking at is how quick and prompt you settle claims.

    For example, in NAIC, what we are trying to do is to, first of all, have internal restructuring and change among our people, because, I believe that it is only a satisfied internal customer that can make the external customers happy. If the staff are not happy, there is no way they can give their best to the external customers. There is a reorientation and change going on among the staff of the corporation. For the first time, in the history of the organisation, we held management retreat for three days. According to the information I gathered, the company had not had it in over 15 years. We need to stop thinking that because we are a public organisation, we can do anything we like. I am coming from the private sector and what I told them is that, yes, we are owned by the government but yet we must be accountable to the customers. It is not the government we are serving. We are set up for a particular purpose. We also discussed prospecting and maintaining new business. What some NAIC staff do is to go after transactions that are bank related which is compelling on the customer. The reorientation we are now giving to the staff by looking at the dynamics and prospects of maintaining business is how to identify customers beyond those that took facility from the bank. What about those that are operating their businesses with their own money; to what extent should we go to educate them to understand the benefits of such patronage.

    We also discussed extensively the opportunity and role of NAIC in the new agricultural transformation agenda. We discovered that before the retreat; some staff did not understand some of the projects and are not aware of investments and other investors that are coming to the country. It is not possible to give what you don’t have. However, the good thing about our own business is that there is insurance opportunity from the reformative stage. From the moment a farmer or an investor agrees to invest in farming and bring equipment to plough the land, there is insurance opportunity. When the equipment arrives in Nigeria and they have to move them to the site, they’ll need guards in transit insurance and lots more. After planting, they will need to arrange cover against risk of flood and peril and even the yield needs cover. Presently there have not been arrangement on insurance based on inputs but we are partnering with Swiss Re which is the second largest reinsurance company in the world. We have an understanding with them to provide us with technical support on human capacity development and we will be signing a Memorandum of Understanding with them soon. Part of the reason why I am partnering with them is to ensure our personnel are trained and retrained. We also want to see how we can improve on our products. Presently, we based insurance on input whereas we should look at it from the point of yield. What I mean about input is the total cost you will incur in the form of planting on a particular seed. Whereas in other deviation what they are looking at is, what is the projection of yield that you want to have which sometimes is being used as the basis of indemnity? But that is based on different factors which we are still trying to work on in conjunction with the Renaissance Partners.

    Weather index has also been in high demand by the customers but the challenge we have is getting the statistics that we need for us to be able to project into the future and base the premium. We want to get some of this information from the Nigerian Meteorological Agency (NIMET) in conjunction with the climate change agency. They are the ones to provide us with this information. But the good thing is that the present ministry of agriculture has been able to work on this project and a climate change committee has been set up where we are able to work on some of these factors. This project is very important. I stated it during my last meeting with the people anchoring the project and we discovered the role NAIC can play on the impact of the project.

    What are you doing to ensure more farmers are aware of the scheme?

    We are trying to sensitise farmers in the urban and rural areas properly through workshops and visits to farmlands to inform them of our services. This way, they will key into insurance voluntarily and not because they are compelled to do so.

    What are your plans to realise the objective of the corporation?

    From the feedback I got, now it is not how far but how well. There are so many things that we are trying to put together in the short time I assumed office. I found that there is not much awareness of NAIC generally. I found that not many people know it and if people don’t know the corporation as they should, how will they know the benefits, assistance or role it can play in the agricultural transformation agenda? We have noted all of these and are working on them, and I believe a positive result will be achieved soon.

    Kindly give a brief insight into NAIC?   

    The primary objective of setting up the NAIC, amongst other things, was to implement, manage and administer agricultural insurance scheme at a subsidised rate as provided by federal and state governments. It is also to carry out insurance on commercial basis and operate other types of insurance business as may be permitted by the National Insurance Commission (NAICOM). As at today, the corporation can be said to have an edge and greater opportunity over other companies that underwrites general business as they do not have access to subsidised premium on crops and livestock policies. Moreover, the Federal Ministry of Agriculture and Rural Development Transformation Agenda focused primarily in making agriculture a business and not a development project through the formation of different schemes and programmes, such as the Nigeria Incentive Based Risk Sharing System (NIRSAL), Growth Enhancement Scheme (GES), Rural Finance Institution Building Program (RUFIN), Staple Crop processing Zones and Agricultural Value Chain. The schemes opened a large vista of opportunities which, we must harness for the betterment of stakeholders.

    In simple context, our objective is not only to mitigate but eliminate financial losses of farmers who have been affected by flood, drought and other natural hazard. If you cannot mitigate, you cannot eliminate the extent of financial losses from crop losses. For instance, in 2012, drought affected over 130,000 farmers. Unfortunately, not many were insured because they were not aware of the existence of such cover. Majority of those insured were the medium and large- scale farmers, who invariably have accessed loans from the banks. These set of farmers insured their farms because the banks require that they have insurance before they can access loan.

    What is the projection of the weather on farmer’s land and their produce?

    We cannot give projections on weather. NIMET is in the position to do so. We do not know it now and that is because we are not doing Weather Index Insurance yet. The only thing we should be guided on is the level of flood we should expect. We are all living witnesses of what happened in 2012. We are told the rain of 2013 will be far more than the flood we are experiencing in 2012. But it was almost a drought that we had last year. The only thing we tried to do as a company is to see how we are going to support our portfolio properly by ensuring we have a good reinsurance in place. There are channels of distribution network that we are working on in conjunction with the Federal Ministry of Agriculture. It is really crop insurance but it is the process of selling the insurance that we are changing. It is going to be different because it will be ICT driven. We will sell it through the e-wallet system. We have advanced on it and we will distribute insurance to farmers through this system. The rainy season has started and the distribution of fertilisers has commenced. Before now government gives farmers two bags of fertilisers free but it was agreed this year, that the farmers will pay certain percentage of money. It will no longer be 100 per cent subsidised. What they will pay is about N2,750 for a bag of fertiliser. From analysis, we discovered that a bag will take care of a farming of one acre of land and they are entitled to two bags so that means they will be able to plough two fertilisers on two acres of land. What we plan to do is to promote insurance cover up to the tune of N20,000 per acre even though this is not the worth of the crop that is on the field. But what we try to do is to base it on a compensation that was paid by the Federal Government to each of the farmers affected in 2012 flood. Each of them was paid N22,000 as a form of compensation. So we are not providing indemnity but compensation for each of the farmers against the listed peril. This means that a farmer buys a bag of fertiliser for just N300 for a sum insured of N20,000. So as the farmer buys two bags and pay N600, he or she would have had insurance cover for N40,000. For instance, the flood that happened the other time or maybe there’s a fire, storm or drought, the farmer can go back to farming almost immediately.

    We discover that it is the small scale farmers, micro farmers that are really affected. These are people whose primary objective is to take care of their family and that is why we have to bring down the premium to as low as N300 for a value of N20,000 sum insured.

    Do you have a reinsurance scheme?

    The only way we can also support and strengthen our own business is to ensure we have a proper reinsurance in place. If the 2012 flood happens again, we will not be able to meet up to our obligation. This is part of what we went to do in Zurich with Swiss re. They have a good brand and they will help us develop our human capacity here in Nigeria and at the end of the day, we will have more knowledge of how to do the business better.

    What is your target in terms of premium income generation?

    For me, it is not the premium income target that matters but the level of coverage and impact we are going to make among the farmers. Our target is how farmers are going to be more aware of the benefits and how to take advantage of it. On the database from the ministry of agriculture, we have 10.9 million registered farmers under the e-wallet fertiliser scheme. Our target is to at least provide cover for 50 per cent of these farmers; it will mean we have reach out to about 5 million farmers in Nigeria. This is our target.

    But in terms of premium income, the year 2013 ended with about N900 million and it is a far cry from what we ought to achieve.

    Another good thing we discover is that NAIC is the only company that underwrite agric in West Africa because of the peculiar nature of the risk attached to the line of business. So we are looking at how to extend our services to some countries. We will not provide reinsurance for them but provide technical and consulting services. We have two companies that approached us from Ghana and Liberia. They had a farmland they wanted to insure. We sent our own personnel to the countries to do the risk survey; agree the pricing and guide them. Then we will encourage the local operators in their country to take a certain percentage of the risk and place the balance with another reinsurance company within their market or place it with Continental Re in Nigeria. We will then charge our own fees. This and many more are what we are doing to improve our income.

    Some farmers are complaining that NAIC is not present in their state. What are you doing to address the problem?

    Part of our programme is how we will sensitise them more and partner with them through their various associations. We partner with cassava, fish farmers, and many others. We are also looking at many other states that we want to partner with and have branches in each of the zones. Presently we have branches in all the zones and if a farmer does not know us, that means the zonal officers have not been doing what they ought to do. The executives cannot be everywhere. But we will ensure they do what is expected of them henceforth.

    Also, some farmers that have insurance complain of not being paid cla ims.

    I will take it from the point of how professional we are. If you follow our story, there is a claim of about N80 million that I paid when I resumed in February this year. That claim has been there and adjusted since December last year. Some of us still have the idea of parastatals kind of thing that is different from the private sector. I am coming from the private sector and for me; any claim that is settled is a form of advertisement. I believe a satisfied customer will always talk about you in a good way to others and even market you. I see no reason why a claim that has been investigated by a loss adjuster and reported back to you as true should not be settled immediately. There is no point delaying such claim because you will not pay it twice. The sum of N50 million valued today cannot be compared to N80 million in three months’ time. So if we keep the money in the bank, we may not get up to N1 million but the publicity we would have gotten if we had paid the claim on time will be more. I will like to say to every farmer that has insured their farms and other stakeholders that this current management will not hesitate to pay claims. Part of the thing we draw up is three strategic business initiative. These are the fundamentals that we are working upon to make us grow and have a good brand.

    In branding ourselves, we discovered that we need to work on our communication channels, not only to the external customer but even within the Corporation. We believe that, the same NAIC that is based in Sokoto is the same one at Bayelsa. Based on this, we are doing so much in our information technology (ICT) so that our business communication will improve. We are also redesigning our website. In the next one month or thereabout you will be able to log on to the new one. The speed of managing your data and communicating with both internal and external customer when you have a good ICT platform to manual is quite different. This affects our ‘Turn Around Time’ for our operation. Before now, it takes a long time to prepare policies. For example, from the understanding of our business central, everything from preparing and approving polices comes to Abuja. We are now going to have three head offices, one in Lagos, Kaduna and Port Harcourt. So some of the key people that are doing the authorisation in Abuja will be deployed to these three regions and will be empowered to underwrite. This I believe will definitely reflect on the ‘Turn Around Time’. Policy preparation that takes two to three weeks to prepare should take at most 48 hours for an ideal company. So by the time we centralise in authorizing this business, it will save the business process up to payment of claims.

    It seems NAIC does not have the capacity to cover all agricultural risks. Recently, some fish farmers complained that the Corporation refused to provide cover for their juvenile and fingerling production. Why?

    The challenge is that we don’t have cover for juvenile presently. The reasons are one, the mortality rate for juvenile and the challenge also has to do with the knowledge gap of some of these farmers. For example, if you want to supply fingerlings, it is not the same morning that you want to go and deliver that you will pack them into a basket, leave them and put them in an open keg and take them out. They cannot survive because the temperature while they were in the pond will be different from when you will put them in the basket and almost immediately put them on transit. They are very fragile at the stage and the mortality will be very high. Ideally, for you to move them tomorrow, it is like a baby that you handle with care. You suppose to take them neatly and preserve them in the new atmosphere for at least 12 hours for them to get used to it.

    So, these are the areas we have serious challenge, where we also feel we need to re-educate some of these farmers. Then we have not been able to get reinsurance cover for fingerlings because of the extreme mortality rate in Nigeria. So what we have to do is partner with Swiss Re and it is part of the listed cover that we need for the farmers.

    The Federal Government has banned fish importation, prompting many to invest in local production. But this is still without insurance which is supposed to cushion their loss. Does this not suggest that the initiative may not be successful?

    Yes, it is going to be a challenge but I strongly believe it is going to get better. From the recent sensitisation programme for fish farmers by an NGO whom we partnered with, we found out that some of them did not even know how insurance can be beneficial to their business. So from time to time, we intend to sensitise them in each states. We are going to Ogun State now. We have gone to Kwara State and the Governor called me that same day that they want to partner with us on Songai farms. They also want us to meet their ministry of agriculture for other programmes. So I believe that if we reach out more, we will see the gain not only to the Corporation but also to the farmers.

     

  • 100 Lagos farmers receive claims over loss, says NAIC

    100 Lagos farmers receive claims over loss, says NAIC

    About 100 rice farmers in Lagos State have been compensated for crop losses on over 120, 000 hectares of rice field, the Managing Director, Nigerian Agricultural Insurance Corporation (NAIC), Bode Opadokun, has said.

    The NAIC boss, who made this known to journalists in Lagos said the loss of crop by the farmers was occasioned by drought in September 2013, adding that the state government has commended the Corporation for the prompt payment.

    According to him, the Permanent Secretary, Ministry of Agriculture and Cooperatives, Lagos State, represented by Dr. Olayiwole Onasanya, lauded NAIC for the prompt investigation and payment of the claims which had ameliorated the pain of the losses suffered by the small holder farmers.

    The ministry appreciated the due diligence and prompt payment of the claims by NAIC and believe the rice farmers are encouraged and convinced of the critical importance of crop insurance in sustainable agricultural development., he said.

    Opadokun urged both large and small scale farmers in the country to embrace agricultural insurance to cover attendant risks in agricultural practices.

    He said in the event of any disaster, NAIC would be readily available to settle all verifiable claims, stating that NAIC has several insurance covers which all categories of agro-allied business operators could take. He explained that losses and disasters do not affect local farmers alone, but equally affect the whole agricultural value chain, including the suppliers of inputs as well as the consumers.

    He however decried the poor awareness and response of farmers towards agric insurance policies, explaining that the Corporation primarily exists to indemnify all categories of farmers against unforeseen natural disasters, with a view to keeping the farmers in business at all levels of the agric value chain.

     

  • NAIC issues N80b agric policies in 27 years

    NAIC issues N80b agric policies in 27 years

    No less than 500 insurance policies worth about N80 billion have been issued to farmers since the inception of the Nigerian Agriculturaltural Insurance Corporation (NAIC) over two decades ago, its Managing Director, Bode Opadokun, has said.

    The NAIC scheme has achieved one of its main objectives: lending to agriculture, he added.

    Opadokun spoke at a sensitisation programme on Financial Oportunities for Small Scale Farmers & Micro Small & Medium Enterprises with the theme “The Nigerian Farmers, MSMEs: Prospects and challenges” in Lagos.

    According to him, the scheme has encouraged lending institutions to lend more to the agricultural sector, especially to the small and medium scale farmers, stressing that the claims settlement by NAIC has also significantly aided the credit recovery drive of the lending documents before accenting to them.

    He said: “Most times, they impatiently wave away all suggestions for them to scrutinise the policy documents. As a result of this inability to be conversant with the policy conditions, he said when claim arises and it is repudiated on the ground of sound insurance principles which in any case are enshrined in the policy document but impatiently waved away by the client, the insurance industry receives the blame.”

    He said to qualify for indemnity under the scheme, the farmer must pay an appropriate premium before the occurrence of the loss.

    He continued: “The insurance cover must be obtained before the damage or loss occurred; the insurance cover must still be in force at the time of damage or loss, the farmer must have followed laid down practice for crops and livestock production, the notification of the damage or loss must be made within the stipulated time among other conditions spelt out in the policy documents.

    “NAIC is poised to remain a major player in the provision of risk management services to all investors in the agricultural value chain in Nigeria. We intend to create a mass awareness of the benefit of insurance to all agricultural producers and investors and continue to provide adequate insurance cover across the entire value chain for virtually all known risk exposures.

    “Our provision of insurance coverage will be for the right risks, using both new and existing products in order to ensure a high level of insurance acceptability by agricultural investors.”

    Opadokun advised agricultural investors to take advantage of their products and services to ensure that their investments remain adequately protected from unforeseen risks.”

    Managing Director, Green Focus, Adeola Adessy, said the workshop connected small scale farmers, corporate farmers, small and medium enterprises, small scales industries, banks, commercial banks insurance firms, government agencies, professionals, and other major stakeholders from diverse backgrounds w to engage, proffer solutions to problems and empower the sectors for more efficient and productive culture.

    He added that NAIC is committed to providing a perspective for educating and empowering the small scale farmers and small and medium enterprises in Nigeria.

    “It is our expectation that this workshop will create awareness on how to access profitable loans or funding from commercial banks, Federal Government Banks, insurance firms and any other platform through which funds can be accessed. We believe that the banks have a major role to play in the growth and success of small scale farmers and SMEs in Nigeria,” he said.

  • NAIC pays sugar firm N80m claims

    NAIC pays sugar firm N80m claims

    The Nigerian Agricultural Insurance Corporation (NAIC) has paid about N80million claims to the Savannah Sugar Company, Numan, following the recent crop losses sequel to the fire out break and floods that ravaged a total of 458 hectares of cultivated farmland owned by the company in Gombe, its Managing Director, Bode Opadokun has said.

    According to him, the sugar company which has over 4, 863 hectares of land, had over the years, paid its premium to NAIC promptly in view of the risk potentials that characterised its operations. He said the loss occured particularly due to the perennial fire outbreaks and floods in the vast farmland, situated along the Numan-Gombe road in the North eastern part of the country.

    He further said the breakdown of the claims indicated that the total sum of N32.3million was first paid as insurance claims to the company in December last year for the fire outbreak which ravaged over 194 hectares of the farmland adding that the sum of N47.2million was settled last week in the second tranche to the insured in respect of the floods which had destroyed the vast sugar cane farmland covering about 265 hectares.

    Opadokun who described the firm as a frontline client of the risk bearer, had directed prompt payment of the second tranche to the company.

    He promised that NAIC would at all times, respond promptly to genuine claim requests after due diligence has been carried out with a view to sustaining its good corporate reputation in the market place.

    He said prompt claims response and adequate payments are key elements of good and credible insurance firms, saying NAIC would strive to be a role model in claims payment, given the peculiar nature of its specialised agric insurance obligation to all categories of insured farmers nationwide.

    He said for NAIC to sustain its competitive advantage in the industry, the firm must be re-engineered and strategically positioned to expand its clientele base across the country.

    He reassured all stakeholders including the small farm holders and corporate clients of a re-invigorated NAIC for optimal service delivery to all its clients nationwide and further tasked workers to be responsive to all clients’ requests and expectations.

     

  • Fish farmers, insurer in row over cover

    Fish farmers, insurer in row over cover

    The Nigerian Agricultural Insurance Corporation (NAIC), a wholly-owned Federal Government insurance company, was set up to provide agricultural risks’ insurance cover to farmers. But fish farmers are complaining that the corporation has refused to insure their fingerlings and juvenile production, which are considered ’too hazardous. The farmers are wondering where to turn, reports Omobola Tolu-kusimo.

     Fish farmers have criticised the Nigerian Agricultural Insurance Corporation (NAIC) for its inability to provide insurance cover for their fingerlings and juvenile production.

    Fingerlings and juvenile in fish farming are eggs of catfish hatched after about eight days of incubation and reared in the hatchery for an additional four to 10 days. Thereafter, they are transferred to a nursery pond, raised for three months, and harvested.

    Fingerlings are then stocked into fish growout ponds, fed daily, and harvested when they reach one to two broodstocks, which in fourth to six months produces a food-sized channel catfish.

    Prior to the establishment of NAIC, farmers suffered various losses on their investment and had no means of going back to production. The frustration made them to move into cities in droves in search of other means of livelihood. This situation led to the depletion of farm populace, which became a serious threat to food security.

    Disturbed by the trend, the Federal Government established NAIC to address the problems of farmers. This led to the establishment of the Nigerian Agricultural Insurance Scheme in 1987, and a corporation in 1993 by the enabling Act 37, of 1993.

    NAIC offers insurance cover on subsidised crops, livestock, fire/special peril insurance, all risk insurance, burglary, motor insurance, money insurance, professional indemnity, machinery breakdown, among others.

    Risks in agricultural undertakings are more widely spread and far-reaching than in most other enterprises. This is because they go beyond all the well-known and researched entrepreneurial hazards and uncertainties of the modern business world.

    Such hazards include natural vagaries, inclement weather conditions, pests and diseases, along with flood and fire outbreaks. All of these impact very seriously on the success or failure of any agricultural enterprise. Any nation with a clear vision for boosting its agricultural production so as to meet the food needs of its populace and industries,s must of necessity put in place mechanisms that would reduce these risks and uncertainties to a bearable minimum.

    The need, therefore, for a mechanism that functions specially to keep the farmers in business cannot be over-emphasised.

    But fish farmers have cried out, saying NAIC has refused to provide cover for the risk capable of jeopadising their fingerlings and juvenile production.

    The embattled farmers said they do not know how to protect their investment since NAIC has refused to protect the risks associated with fingerlings and juvenile as this is the most harzardous part of their business.

    According to them, the corporation only provides cover for what they describe as the juicy and lesser risk in the fish farming business, such as the broodstocks, management of fingerlings and pilferage.

    Chairman, Shudel Farms, Ikorodu, Lagos, Mr. Lanre Alao, who said he is on the list of West African Agricultural Productivity Programme, (WAAPP), a World Bank finance project under the Federal Government for which he is to produce 300 fingerlings every six weeks and 1,8000 broodstocks.

    Speaking with The Nation at a WAAPP forum for fish farmers in Lagos, Alao said he approached NAIC to protect his farm but was shocked when they told him there are categories of risks they can take.

    Alao explained that the risk in fingerlings and juvenile can be harzardous when it occurs because it cannot be controlled.

    He said: “I was shocked by NAIC revelation that they cannot provide cover for the risk because they are the only specialised insurance company that is expected to create a platform for every risk for farmers in the country and this has been disastrous for us as fish farmers because the private insurers do not have the capacity to do so.

    “NAIC told me they are trying to move away from risks they believe are not specific, but that they are willing to accept other type of risks which has to do with broodstock. What is the essence of NAIC when they cannot take all of my risks but the easy part? The one that is more risky, to me, is fingerlings and juvenile production and they refused to grant me cover.

    “Juvenile is the baby of the fish and for continuity sake, they have to provide cover for it. They want to provide cover for managerial part of the business and theft which is not feasible because farmers can fix the managerial problem on time and control theft to an extent. It has to be composite instead of taking the juicy-side and leaving the other one that is a problem to the farmer.

    “I believe NAIC is not helping agriculture and the nation and I think it has to sit down and look at a way to evolve a policy that will accommodate the fingerlings and the juvenile production.”

    Alao urged NAIC to be alive to its responsibility by creating an insurance cover for the risk, noting that if they are able to underwrite broodstock, they should be able to underwrite juvenile and fingerlings production.

    Executive Director, Fishshoal Nigeria and the Divisional Coordinator, WAAP Innovative Platform in the Southwest, Steve Okelaji also said there is no proper insurance for farmers in the country.

    Recounting his experience, he said: “I am a victim of NAIC. I invited them over to my fish farm three years ago to provide insurance cover. They accessed it and I paid the premium. I later had crisis on the farm and lost about 300,000 fingerlings. I invited them in March 2010 and they told me they will get back to me.

    “They came back eight months after with a letter informing me that they do not cover fingerlings and juvenile production, and I was given N234,300 as compensation out of a total claim of about N6million. They said they gave me the money because of the relationship between us. Meanwhile, it was not stated in the policy that they do not cover fingerlings and juvenile,” he said.

    He noted that this was contrary to the Federal Government’s programme which is intended to ban fish import so that they can farm it in Nigeria.

    How do you protect the business when local production is not secured? he queried.

    He said: “The programme is not sustainable without government’s protection. Most of us are exposed to lots of risks. The government is supposed to be our last resort because the other private companies do not have capacity and cannot protect us.

    “At present, we are working on the WAAP platform to push and talk to some principals in the government to find a solution to this problem. NAIC needs to go back to their drawing board and see how they can interact with farmers so that we can find models in which they can adopt to insure the fingerlings and juvenile production,” he added.

    Mrs Prisca Aseyemo from Rivers State, who engages in smoking fish and seafish, said she does not have insurance neither is she aware of any representative of NAIC in her state.

    She said: “I know there is NAIC, but the report I get from my colleagues is not pleasant. Two of them who made claims were not treated fairly and that has made me not to believe in them,” she said.

    A Professor of Fishes and Agriculture at the Federal University of Technology Akure, Oyedapo Fagbenro, said many farmers do not have adequate insurance required to sustain their business.

    He said the insurance industry has grown and it was time for the companies to begin to think of how they could provide agricultural insurance, especially for fish farming.

    He said: “Since my days as a Masters student in the 80’s, I always felt that it was one opportunity that we had missed. We insure cars, life, but when we have an investment that includes life of other organisms, we don’t.

    “I know that NAIC insures fishing bowls and fishing utensils, but farms should be included in their policies. Over 90 per cent of farmers do not insure and they need to insure based on environmental factors. Different things can happen to their fishes.”

    Fagbenro said NAIC should enlighten farmers at the grassroots, noting this can be propagated through the Fisheries Society of Nigeria (FISON), and other organisations, adding: “NAIC also needs to be more accessible to all farmers. It is based in Abuja and Lagos, but is not represented in my state and some other states. They need to inform the people on why they should insure risks against their farm.”

    But the Deputy National President of All Farmers Association of Nigeria (AFAN), Prince Ike Ubaka has a different view. He said they used to have problems with NAIC, but there is a lot of improvement.

    “NIAC has expanded and improved their services. They now provide life insurance for farmers. They also provide fire and burglary and third party insurance, including vehicles such as tractors they use in the farms.

    “At present, about two-thirds of the farmers who are seriously into commercial ventures are insured. Before now, we, as farmers, take things such as flood, fire and theft as an act of God, but when the obvious dawned on us and we realised what we lost, we began taking insurance as a serious element in our business. That is why we stepped up our advocacy and prevailed on NAIC to improve their services,” he said.

    Meanwhile, efforts to get the corporation’s reaction proved abortive as the immediate past Managing Director, Dr. Tijani Garba failed to respond to questions sent to him before his exit.

    Earlier, Garba reassured NAIC customers of continued and improved service delivery.

    He stressed that the government established NAIC to provide succour and extension services to farmers who insured with the corporation to be paid adequate compensation to restore unfortunate farmers to their positions before the various insured events and as such guarantee food security in the country.

    A new Managing Director, Bode Opadokun has been appointed for NAIC

    He promised to give staff training a high premium, saying a well-equipped personnel is key to efficiency and optimal service delivery.

    He assured that with his private sector pedigree, he would bring to bear the spirit of robust competition by making NAIC a key and frontline player in the insurance industry.

    He noted that NAIC has a competitive advantage of being the only agricultural insurance firm in the country that has the potential to achieve a global benchmark set by countries, such as China, India and America in agricultural risk management and service delivery.