Why Agricultural Insurance must be made compulsory in Nigeria

The Nigerian Council of Registered Insurance Brokers (NCRIB) has underscored the need for government to make agricultural insurance compulsory in the country.

NCRIB President, Shola Tinubu, made this known while addressing Course 39 set of the Nigerian Institute of Policy and Strategic Studies (NIPSS), Kuru.

According to him, the government’s quest to reflate national economy and put the nation on sustainable path of economic vibrancy should necessitate the need to make agricultural insurance compulsory as a pre-condition for facilities, subsidies and other government support.

Tinubu, who applauded government’s progressive moves to diversify the economy from oil to non-oil, averred that in order to increase insurance penetration in a geometric proportion there should be concentration on the Agric sector in terms of marketing the intrinsic value of Insurance products to farmers and other Agricultural and Agro allied sectors.

He highlighted the need for the government to embrace insurance in its efforts to take prudent economic strides, considering the scarce resources and government’s tight budget  make it less likely to easily replace assets in the event of loss.

He opined that it was time for governments across levels to transfer their risks to the insurance market and free funds for other developmental projects, noting that the time was ripe for them to issue directives to ensure that all assets are insured through licenced insurance brokers, with risks premiums provided for in their yearly budgets.

On payment of bidding fees by brokers, NCRIB President urged the government to retool the procurement rules for brokers, making it to be in tandem with similar professional bodies like lawyers, accountants, architects, and other allied professionals.

Tinubu urged Nigerian Interbank Settlement System (NISS) to utilise its pivotal position to advice government on the crucial roles of brokers in the insurance value chain and the growth of the industry, which he noted was the linch pin of sustainable economic growth of progressive nations in the world.

He lauded NIPSS for retaining its prestige as the foremost leadership institution in the country, with attendance of top level policy makers and executors drawn from different sectors of the economy, with a view to widening their outlook and perspectives on issues and improving their conceptual capacity..

He further said the Council has joined the league of notable professional bodies and functionaries, such as the Central Bank Governor; the Service Chiefs; the Inspector General of Police and numerous academia, who had in past added value to policy conception and advocacy roles of the Institute.

Earlier, the Acting Director-General of the Institute, Jonathan Juma, advised the insurance industry to create more awareness about the value of insurance to national economy and be ingenious in the creation of valued products that would meet the needs of the people.

He said from comparative studies the industry is the main catalyst of economic growth in most advanced climes visited by the institute and there was no basis why Nigeria should not witness the same development if the industry positioned itself positively for desired growth and profitability.

 

Source: Vanguard