Nigeria signs MoU with Moroccan firms on agric. insurance

Published on
13.10.2017 à 12h21
APA News

The Nigeria Incentive Based Risk Sharing System for Agricultural Lending (NIRSAL) has signed a Memorandum of Understanding (MoU) with two Moroccan firms, Mutuelle Agricole Marocaine d’Assurance (MAMDA) and MAMDA Reassurance (MAMDA-RE) to expand agricultural insurance coverage in Nigeria.Signing the MoU in Abuja on Thursday, the Managing Director of NIRSAL, Mr. Aliyu Abdulhameed, said the partnership was a product of the bilateral agreement signed between President Muhammadu Buhari and King Mohammed VI of Morocco in December 2016.


He noted that the MoU would cover index based insurance products, which include weather, pricing and yield indexes to protect farmers’ investments in case of flood, fire or pestilence.


The CEO said the move was to de-risk agriculture, facilitate flow of finance to the sector to diversify the economy, attain self-sufficiency in food production and entrench inclusive economic growth.


According to him, NIRSAL’s target is to move insurance coverage from about 5 million to 3.8 million agricultural primary producers to help reduce credit risks, increase lending and investments across the agriculture value chain.


Abdulhameed said the partnership would involve advanced technical training on surveying aggregated farmlands, large commercial and plantations farms and loss assessment methods.


Others are technical training on Geographic Information System (GIS), technology for agriculture and Remote Sensing application in Agricultural Crop Insurance.


“This signing means a lot to the agriculture sector of the country. As a risk management corporation of the Central Bank of Nigeria for agriculture and agribusiness, it is important for us to have capacity for risk analysis, management and mitigation.


“For us to be able to deliver on our mandate of enabling the flow of finance and investment into the agriculture value chain, the capacity to do risk analysis, management is a second nature to us,” he said.


He said that NISRAL was leveraging the experience of MAMDA, the number one agriculture insurance company of Morocco, to learn the tools, skills of risk management in agriculture.


Mr. Khalid Abdellaoui, the Deputy CEO of MAMDA and MAMDA-RE, commended the Nigerian government and NISRAL for the MoU.


According to him, the companies are committed to assisting the Nigerian government to expand and move agriculture insurance forward in the country.


In his remarks, Mr. Moha Ou Ali-Tagma, the Ambassador, Embassy of the Kingdom of Morocco, said that agriculture was a very important sector in Morocco, contributing revenue of over 20 billion dollars annually.


“For our countries, it is important to develop the agriculture sector. This is a very important step in the long way of the strategic partnership between the two countries. It correspondents with the interest of King Mohammed the VI and President Muhammadu Buhari,” he said.

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