Following its gradual implementation of Oronsaye report’s recommendations, the Federal Government has created a team for the full commercialization of two agencies.

The agencies, Nigerian Agricultural Insurance Corporation (NAIC) and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), are to be recapitalized in line with the recommendations of Presidential Committee on Restructuring and Rationalization of Federal Government Parastatals, Commissions, and Agencies, also known as the Orosanye Committee, whose report had been endorsed by the Federal Executive Council (FEC).

Acting on Federal Government’s directive, the Bureau of Public Enterprises (BPE) has inaugurated the Project Delivery Team (PDT) with the task to undertake recapitalization and full commercialization of the two agencies playing a pivotal role in the agriculture sector. The team is mandated to oversee the reform process, including the appointment of a Transaction Adviser to conduct due diligence and develop a comprehensive framework for the recapitalization and commercialization of NAIC and NIRSAL.

Terms of reference include to review and recommend improvement to existing acts, policies, and regulations; purpose institutional and organizational changes for the enhanced efficiency of NAIC; advice on legal and regulatory frameworks for successful commercialization; conduct status reviews of NAIC and NIRSAL to inform stakeholders of current conditions and prepare and to submit comprehensive reports on the progress and recommendations of the Transaction Adviser.

Speaking on the development, the Acting Director General of Bureau of Public Enterprises (BPE), Ignatius O. Ayewoh, who inaugurated the PTD, expressed confidence in the successful execution of the initiative, which, he said, aligned with President Bola Ahmed Tinubu’s objectives of achieving food security and fostering a robust agricultural sector. “Our goal is to create a strong, efficient, and well managed organisation that will mitigate risks in the agricultural value chain, ensuring a secure environment for farmers and investors alike,” he stated.

Also speaking, the Managing Director, NAIC, Mrs. Folashade Joseph, highlighted the importance of a recapitalised NAIC, saying the organisation was hugely indebted. “Adequate recapitalisation would enable the organisation to fulfill its mandate and achieve the food security programme of the Federal Government, underscoring a need for collaboration by stakeholder agencies to achieve the purpose for which the committee was constituted,” she said.

Also, the Managing Director, NIRSAL, Abbas U. Ma sanawa, noted that insurance was only a pillar among the five key pillars of NIRSAL, Insurance, risk sharing, technical assistance, rating mechanism and bank incentive mechanism. He assured the PDT of NIRSAL’s unwavering support in achieving the food security goals of the Federal Government.

The PDT, chaired by Mr. Toibudeen Oduniyi of the BPE, includes representatives from key stakeholders such as the National Insurance Commission (NAICOM), Central Bank of Nigeria (CBN), Federal Ministry of Agriculture and Food Security (FMAFS), and the Nigerian Agricultural Development Fund (NADF).