Insurance World

Agric Insurance To Boost Financial Inclusion Among Farmers—NAIC Boss

MD/CEO, NAIC, Mrs. Folashade Joseph

BY NKECHI NAECHE–-Agricultural insurance is one of the policies of insurance that will help to complement the efforts of the Federal Governmen in financial inclusion in the agricultural sectors.

These were the words of the managing Director/CEO, of the Nigerian Agricultural Insurance Corporation (NAIC), Mrs. Folashade Joseph, that, while the federal government through the Central Banks of Nigeria(CBN) is providing soft loans for farmers, the corporation is complementing this effort by insuring these farmers, in a bid to incorporate them in the financial system.

The NAIC boss disclosed this to Nigerian journalists on the sideline of the just concluded 46th African Insurance Organisation (AIO) in Johannesburg, South Africa, that financial inclusion, ensures that more people, especially, those in the informal sector of the economy, are brought into the financial system, to aid proper economic planning, enhances savings culture and increases loanble funds in the banking sector, which contributes to the healthiness of the entire financial sector value-chain.

She added that agriculture contributes more to the nation’s Gross Domestic Product(GDP),while noting that her corporation was specifically created to cater for the entire agricultural value-chain, of which farmers are major. 

” We aims to boost the economy through agriculture. Agriculture has contributed much to the nation’s GDP in the last few years. 

On the part of NAIC, 80 per cent of farmers are engaging in small scale farming. And it very important to take care of these farmers against risks that may arise from farming. The farmers are financially included because they access loans. Though federal government has done a lot through CBN in this regards, it is our role to support this process to makes farmers happy and comfortable.”

To increase the number of agricultural insurance policyholders, she said, her corporation had, and is still embarking on sensitisation of farmers across the country on the need to protect their farmlands, and equipments through agric insurance products offered by NAIC.

Listing the barriers of insurance penetration which is also affecting adoption of agric insurance products, she said, culture, religious beliefs are challenges as the small hold farmers do belief everything is an act of God.

“The culture, the religious beliefs are challenges as the small hold farmers do belief everything is an act of God. But with increased senstitisation, trainings and awareness we are giving, things are improving . With the sensitisation of farmers which we do periodically, they are gradually appreciating the value of insurance. My advise for farmers is to embrace insurance to protect the future.”

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