The federal government has signed a tri-party agreement on insurance to address the risks associated with transporting agricultural produce across the country.
Speaking at the signing of the memorandum of understanding (MoU) in Abuja , Folashade Joseph, managing director of the Nigerian Agricultural Insurance Corporation (NAIC), said the historic move was long overdue.
Agricultural insurance protects against damage or loss in crops and livestock; it also has the capacity to shield farmers when shocks occur and encourage greater investment in agriculture.
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The MoU is an implementation of the National Transit Insurance Scheme (NATIS) and is being shared between the (NAIC), the Nigeria Association of Agricultural Produce Dealers (NAAPD) and the Association of Local Governments of Nigeria (ALGON).
The NAIC leader noted that agricultural products being moved from one point, or state to another needs to be insured to cater for the huge losses suffered by farmers and agro- dealers in the event of transitional risks like accidents.
“We have offices across the country. So, in collaboration with NAAPD, ALGON and NAIC being the under writers, we will disseminate the information to peasant farmers,.” she said.
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Charles Orji, founder and chairman, of the NAAPD Board of Trustees , remarked that the signing of the MoU, was a dream come true for him, noting that it will go a long way in helping farmers secure their goods in the event of any form of loss, particularly transitional accidents.
NAAPD Secretary-General, Kingsley Chikezie, said the organization decided to take the giant stride because of its commitment to food security in the country.
Speaking on behalf of ALGON’s national president, Salawu Ozigi, the association’s director of finance and administration, lauded the scheme while promising ALGON’s full commitment to ensuring the impact of the scheme is felt at all levels in the country.