Mr. Kwatri Kwagga Yusuf, Managing Director Nigerian Agricultural Insurance Corporation (NAIC) have urged Banks and other institutional lenders to extend credit facilities to Nigerian farmers, assuring that the Nigerian Agricultural Insurance Corporation (NAIC) will providing extra security for such loans
Mr. Kwatri Kwagga Yusuf, Managing Director NAIC said this while presenting a paper at the 4th African Rural and Agricultural Credit Association (AFRACA) Agric bank forum in Abuja, a statement from the Corporation signed by the Head Corporate Affairs Butrous Pembi said.
The banks over the years have stifled credit lines to the preferred sector of the economy on the grounds that it is a highly risky sector.
But the agency responsible for providing insurance cover and thereby minimising the risk in the sector said there is a need for to evolve corporate synergy as a strategy to bring together relevant stake holders in the agricultural value chain, with a view to building capacity and sharing of ideas towards optimizing and sustaining food productivity in Nigeria.
He agreed with the bank that the Agriculture related businesses are always exposed to various risks coupled with paucity of funds leading to poor productivity of farmers.
The forum which was hosted in conjunction with CBN was organized to address the problematic issue of financing options for Agricultural and Rural Development in Sub – Saharan Africa.
He called for the removal of stringent conditions associated with lending to the sector to make farming attractive to the youth.
He assured that loan repayment will also increase tremendously due to the added supervision of farmers activities by NAIC and other participating institution in the operation of the Agric insurance scheme which has been administered by NAIC since its inception in 1989.
The Managing Director also addressed the difficulty of designing new Agricultural Insurance products, but reassured that NAIC is already collaborating with the World Bank in the area of weather index insurance which is designed to address local weather indices with a view to easing loss assessment and indemnification