GIIF is funded by the European Union, Japan and the Netherlands.
The EU is the primary donor partner to the GIIF Trust Fund with a focus on the African, Caribbean and Pacific Group of States (ACP). The governments of Japan and the Netherlands are providing additional support to different regions/countries where IFC operates.
Agricultural insurance was introduced in Nigeria in 1987 through the creation of the Nigerian Agricultural Insurance Scheme (NAIS). In 1993, the private company in charge of underwriting and implementing the NAIS was dissolved and replaced by a public-sector corporation, the Nigerian Agricultural Insurance Corporation, NAIC.
Currently, NAIC oversees a portfolio of crop, forestry, livestock, poultry and aqua-culture insurance and also non-life commercial insurance lines. NAIC has received government support both in the form of the initial capitalization of the company and 50 percent premium subsidies on most classes of agricultural crop, livestock, poultry and aqua-culture insurance. NAIC’s agricultural insurance scheme is closely linked to public sector credit provision: farmers accessing crop or livestock loans from national banks have to purchase compulsory agricultural insurance cover to protect the loans.
Feasibility study for index-insurance and awareness raising
The NAIC requested technical assistance from the World Bank in order to develop index-based crop insurance products to complement its traditional indemnity-based loss of investment cost policy.
The areas covered under the NAIC application to GIIF included feasibility studies for the introduction of index insurance products, as well as a review and uplifting of the current regulatory and supervisory framework.
A pre-feasibility study was completed for five Nigerian states (Kano, Kaduna, Lagos, Enugu and Cross River) for rain-fed maize and rice but concluded that the main risks faced by agricultural production in these states (pest and diseases, fire, and flood) were not being indexed.
The study recommended investigating possible applications of remote sensing for the development of NDVI products at the meso- and macro-level in the northern arid and semi-arid areas of the country.
A study tour and training to India for a NAIC representative was organized.
The Central Bank of Nigeria (CBN), the National Bureau of Statistics (NBS), the Nigerian Meteorological Agency (NIMET), the National Insurance Commission (NAICOM), the Nigerian Insurance Association (NIA), and the National Agricultural Rural Credit Bank Ltd. (NACRDB)