The Nigeria Incentive Based Risk Sharing System for Agricultural Lending ( NIRSAL ) has signed a Memorandum of Understanding (MoU) with two Moroccan firms to expand agric insurance coverage in the country.
The two firms are
Mutuelle Agricole Marocaine d’Assurance ( MAMDA ) and MAMDA Reassurance
(MAMDA-RE). The partnership would also cover the expansion of agricultural
insurance products in the country. Signing the MoU in Abuja on Friday, the
Managing Director of NIRSAL, Mr Aliyu Abdulhameed, said the partnership was a
product of the bilateral agreement signed between President Muhammadu Buhari
and King Mohammed VI of Morocco in December 2016.
He noted that the
MoU would cover `index based insurance products’ which included weather,
pricing and yield to protect farmers’ investments in case of flood, fire or
pestilence. Abdulhameed said the move
was to de-risk agriculture, facilitate flow of finance to the sector to
diversify the economy, attain self-sufficiency in food production and entrench
inclusive economic growth. According to him, NIRSAL’s target is to move
insurance coverage from about 0.5 million to 3.8 million agricultural primary
producers to help reduce credit risks, increase lending and investments across
the agriculture value chain.
Abdulhameed said
the partnership would involve advanced technical training on surveying
aggregated farmlands, large commercial and plantations farms and loss
assessment methods. Others are technical
training on Geographic Information System (GIS), technology for agriculture and
Remote Sensing application in Agricultural Crop Insurance. “This signing means
a lot to the agriculture sector of the country.
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