IBAI to Extend Insurance Coverage to Over 3m Farmers’

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Enterprise Television-IBAI to Extend Insurance Coverage to Over 3m Farmers’

The National Insurance Commission, NAICOM, has said that the Index Based Agricultural Insurance, IBAI, will expand insurance products for agricultural lending from the current coverage of  0.5 million  to 3.8 million agricultural primary producers.

Director, Inspectorate of NAICOM, Mr. Barineka Thompson, said that IBAI is a relatively new financial instrument for transferring agriculture risks from individuals or groups of farmers to (international) risk carriers (Insurers).

He said, Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) is looking to expand insurance products for agricultural lending from the current coverage of 0.5 million to 3.8 million agricultural primary producers.

Thompson said the purpose is to compensate farmers in the event of a loss resulting from shared risks, rather than individual risk, associated with weather fluctuations, disease outbreaks or poor yield.

He further disclosed that the purpose is to compensate farmers in the event of a loss resulting from shared risks, rather than individual risk, associated with weather fluctuations, disease outbreaks or poor yield.