NEC mulls insurance against natural disasters for Nigerians

The national economic council (NEC), chaired by Vice-President Kashim Shettima, is considering implementing a national insurance policy against disasters.

The resolution was approved at the council meeting on Thursday.

NEC is a statutory body that advises the president on economic issues and policies.

Speaking to journalists at the end of the meeting, Atiku Bagudu, minister of budget and economic planning, said the council is looking to award the contract to African Reinsurance, in a bid to shield Nigeria from unanticipated natural disasters like earthquakes and floods.

Bagudu said the decision to consider African Reinsurance was informed by the company’s “support to Morocco” during the devastating earthquake that struck the north African nation in September.

“Among other items, the national economic council under the chairmanship of His Excellency the vice president, Kashim Shetima, considered a presentation by the chief executive officer of African Reinsurance which is the leading insurance company in Africa,” Bagudu said.

“They made a two-fold presentation; one on natural catastrophe insurance that can be utilised to protect the nation against natural catastrophes like flooding and other disasters.

“This is particularly so, as observed by the vice president that Morocco recently had a devastating earthquake and Africa Reinsurance, leading other insurance outfits, provided over $270 million support for those who were affected because they were insured.

“And His Excellency felt this is an opportunity for Nigeria to also introduce natural catastrophe insurance with the likelihood the Nigerian government will provide the support in that regard.”

The minister added that the proposed policy would also benefit small-scale holders, pastoralists, and Nigerian farmers.

“Equally, there was a presentation on crop insurance which can help our teeming farmers, pastoralists and other small scale holders to obtain insurance so that it will protect them against disasters, catastrophes, or challenges that can be faced from time to time in agricultural production,” Bagudu said.

“His Excellency the vice president advised states to utilize the opportunity provided by the Africa Reinsurance in helping to deliver insurance to small scale holder participants in the agricultural space in their respective states.

“Associated with this, the council resolved and directed that the coordinating minister of the economy and finance, as well as his budget and economic planning counterpart, chart a roadmap that can see us adopting the national catastrophe insurance and the insurance for supporting farmers and other small scale holders in our agricultural space.”

The NEC is set is to hold a retreat in the first quarter of next year.

The retreat, to be held in Abuja, would bring all council members together to “improve coordination between the central government and the sub-nationals”.