Herdsmen And Farmers Clashes To Stop As FG Initiates Agric Insurance Products

Concerning the recent numerous issue between farmers and herdsmen that has claimed several lives of people in Nigeria. The Federal Government, on Monday 5th, February 2018 said it was working with a Kenyan firm to develop innovative insurance products for livestock to end the incessant herdsmen and farmers clashes across the country.

Speaking at a workshop on Index-Based Agriculture Insurance, IBAI, MD of Nigeria Incentive-based Risk Sharing System for Agricultural Lending, NIRSAL, Mr. Aliyu Abdulhameed, also made it known that 25,000 farmers had subscribed to IBAI scheme.

Aliyu Abdulhameed also noted that 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.

At the workshop organised by the National Insurance Commission, NAICOM in collaboration with African Reinsurance Corporation and the International Finance Corporation, IFC, the agency affirmed that it liaised with NAICOM from time to time.

He further 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.”

While welcoming participants, Commissioner for Insurance, Alhaji Mohammed Kari, said Index Insurance was a new concept in Nigeria and in sub-Sahara Africa, adding 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.

The Deputy Managing Director/Chief Operating Officer, African Reinsurance Corporation, Mr. Ken Aghoghovbia, stated that subsidies on Index Products in Agriculture insurance had a lot of promise in the continent, especially as food security is becoming a major concern for policy makers in developing countries.