The Central Bank of Nigeria (CBN) has been
alleged of
tactically avoiding compliance
to the Federal Government (FG) directives that all its agricultural projects
must pay a certain percentage of the sum total of the loan per farmer to the
Nigerian Agricultural Insurance Corporation (NAIC) as a premium to forestall any unforeseen
disaster against harvest of produce.
Food Farm News finding revealed.
It was gathered that the CBN has practically boycotted
NAIC who is statutorily mandated to take insurance premium on every FG’s
agricultural support project to mitigate unforeseeable losses that could occur
by any natural and unnatural disasters.
Food Farm News learnt that the reason for this
evasive action by CBN was due to the uncompromising attitude of NAIC insisting on
sighting the project sites in order to ascertain the accuracy of the land size
being owned by the individual farmers, cooperatives, and organizations.
It will be recalled that many rice farmers
could not pay back their loans from the CBN due to consistent flood in the last
five or six years as the RIFAN president, Mallam Aminu Gonroyo had once pleaded
for President Muhammadu Buhari’s intervention on loan waivers for his members
at an organized function at the villa which many stakeholders are now querying
and asking for the insurance component of the sum total of the anchor borrower
program loan against floods and other disasters.
We learnt that the CBN may have bye-passed
NAIC to give insurance premium aspect of the anchor borrower program to other
private insurance organizations that can be easily manipulated not to bother
sighting the project sites even as many of them have been alleged of not having
sufficient capacity for technicalities about agricultural insurance cover like
the NAIC has the statutory mandate with a vast network across the country.
All efforts to get clarification from the CBN
was proved abortive even at a request written to the office to ensure that our
story is balanced through the department of development finance or any other.
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A well articulated write-up. CBN really needs to reappraise its stance on the way the institution is raping the NAIC Act before it is too late
ReplyDeleteVery unfortunate, that a government department is circumventing its own rules! This action only enables looting of the funds, since pre-insurance inspection, monitoring or claims cannot be conducted on such purported projects!! SAD.
ReplyDelete