AGRI-INSURANCE: NIRSAL SHOULDERS RISKS OF OVER 37,000 FARMERS, PROVIDES COVER WORTH N6.5BN
The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) under its Area Yield Index Insurance (AYII) has protected N6.5 billion in revenue of over 37,000 farmers in Nigeria.
In addition to the insurance cover, NIRSAL paid out compensation of more than N121 million for farmers who incurred losses to pests and adverse climate conditions.
Mr. Aliyu Abdulhameed, Managing Director of NIRSAL who divulged this in an Agribusiness Summit in Lagos, said the move was in line with the organization’s mandate to de-risk the agribusiness finance value chain and build long-term capacity for farmers.
“Insurance is a critical measure deployed by NIRSAL in managing and mitigating risk. It is an essential component of NIRSAL’s five pillars,” he said.
NIRSAL’s Area Yield Index Insurance covers smallholder farmers on expected yield based on the historical yield performance in the Agro-Ecological Zone.
The initiative also seeks to protect farmers’ revenues from losses due to pests, diseases, adverse weather conditions, and other disasters.
According to the body, the AYII, under the strategic insurance pillar, was facilitated to give insurance leverage to primary producers, while expanding their products.
Meanwhile, NIRSAL has also made available 50 percent Credit Risk Guarantee for N2 billion working capital facilities, to Agro Traders Limited – a Cocoa processing and Export Company in Ondo State.
In another development, NIRSAL in Kaduna, sanctioned over N6 billion by Stanbic IBTC Bank, for the facilitation of strategic projects in the pre-upstream and midstream segments of the agriculture sector.
