CBN TASKS NAIC ON SERVICE DELIVERY

The Central Bank of Nigeria (CBN) has tasked the management of the Nigerian Agricultural Insurance Corporation (NAIC) to go the extra mile by adopting the  CBN  micro-credit policy initiative with a view to breaking new grounds and meeting other needs of the populace in the areas of micro-insurance.
He advised NAIC to factor into the new micro-credit drive with a view to diversifying its Operation and also strengthening its bottom-line in the competitive insurance business.

Speaking during an interactive session, at the head of a three-man delegation of the African Rural and Agricultural Credit Association (AFRACA), Elder Boma Benebo of the Development Finance Department of the CBN, also commended NAIC for its success in the unique agric insurance business since its establishment 20 years ago.

He further lauded the efforts of the Corporation for its success at meeting up with the preliminary re-certification during the recent recapitalization exercise undertaken by the National Insurance Commission (NAICOM).

Elder Benebo reiterated the need for NAIC to reach out to more stakeholders in the agric business, particularly the multinational corporations who partake in large scale agric businesses, saying the Corporation has a huge potential to succeed in its statutory mandate to serve as a catalyst towards boosting agricultural business and food security in the country.

Responding, the Managing Director of NAIC, who was represented by the Corporation’s Executive Director of Operations, Mr. Yemi Akinyemi, commended the intervention and support of the CBN through its Agricultural Credit Guarantee Scheme (ACGS) saying the ACGS mandatory directive to commercial banks to obtain NAIC cover for their agric loan facilities had greatly benefited NAIC and therefore kept the Corporation alive to its statutory responsibilities to its clients, the farmers.

He further explained that NAIC is a key agency that compliments other government initiatives towards achieving food security and the attainment of poverty reduction among the farming populace, saying the corporation was an indispensable tool in Nigeria’s efforts at attaining acceptable level of development in the promising agric sector of the economy.

He added that the ACGS intervention had succeeded in minimizing the effects of production risk, while recovery of loans had improved tremendously. He revealed that NAIC had to venture into the general insurance business as permitted by NAICOM for the purpose of diversifying its service delivery to the public.

He said NAIC is committed to adopting the principle of corporate governance towards ensuring that public confidence is realized and sustained in its drive to provide different insurance services in the country.

Mr. Akinyemi also assured that the Corporation is readily available to collaborate with other agencies whose desire is to boost food security and alleviate poverty in the country.