Nigerian insurers have called on the Federal Government to break the monopoly enjoyed the Nigerian Agricultural Insurance Corporation (NAIC) so that other sectors will as well benefit.
They have also called for the expansion of subsidy for the nation’s thriving agricultural sector which had enjoyed investments estimated at $15 billion in the last three years.
According to them, the current revolution in the agricultural sector is an indication for the need for urgent diversification to accommodate other insurers, adding that the diversification would provide new growth opportunities which would boost the sector’s revenue.
Analysts who spoke on this opined that the sector has to be liberalized to achieve geometric growth in size and coverage, to support the government’s transformation progrmme.
Group managing director, Industrial and General Insurance plc, Rotimi Fashola, said to enhance the development of this form of insurance, laws need to be enacted and implemented to guarantee government subsidy because the covers are for the benefit of the poor who cannot afford conventional insurance.
“Without government subsidy, agricultural insurance would be unable to play its role in the development of farming, Fashola said.
The analysts also added that an expanded subsidy band will spur competition among operators and create better value for Nigerian farmers who have suffered great losses as a result of environmental and natural disasters.