NAIC to focus on agric insurance as NAICOM withdraws general licence
Nike Popoola
The Nigerian Agricultural Insurance Corporation (NAIC) will continue to underwrite agricultural insurance schemes following the withdrawal of its general insurance licence by the National Insurance Commission (NAICOM).
The Commissioner for Insurance, Mr Olusegun Ayo Omosehin, disclosed this on Friday during a press briefing in Lagos while giving an update on the just-concluded recapitalisation exercise in the insurance industry under the Nigerian Insurance Industry Reform Act 2025 (NIIRA).
Omosehin explained that NAIC, which had previously underwritten agricultural schemes as well as general insurance business, could not meet the requirement for general insurance business.
He said the general insurance licence granted to NAIC as an addition to its agricultural insurance mandate had therefore been withdrawn.
However, he stressed that NAIC would continue to underwrite agricultural insurance schemes in line with the mandate for which it was established.
According to him, NAIC was established by legislation specifically to provide agricultural insurance schemes, while NAICOM subsequently granted the corporation a licence to undertake general insurance business, leading to its underwriting of other classes of insurance.
“The law that set them up is still in operation; has not been repealed. So, to that extent, they are still a baby of the Federal Government,” Omosehin said.
He added that the Federal Government funds the agricultural insurance scheme and would provide additional funds where necessary to address shortages arising from its management.
“Nothing can happen to that scheme for as long as Federal Government of Nigeria is in existence because it’s a baby of the Federal Government,” he said.
The commissioner clarified that what NAICOM had withdrawn was only the general insurance licence that had been added to NAIC’s original mandate.
“What we have withdrawn, however, is the general insurance license that was added. It was an addition to them, which we have taken back,” he said.
Omosehin further stated that NAIC would continue to operate as a specialist underwriter of agricultural insurance schemes.
He also dismissed concerns that NAIC’s exit from general insurance business would create a gap in the market, noting that other licensed insurance companies could provide general insurance cover.
“NAIC leaving General Insurance does not create a gap because there are other entities that have been licensed to provide cover,” he said.
According to him, additional support capacity would also come from other commercial insurers to underwrite agricultural business.
He said the arrangement would effectively retain NAIC as a specialist in agricultural insurance while allowing other commercial insurers to participate in the agricultural insurance space.
Meanwhile, Omosehin said 48 insurers and two reinsurers scaled the recapitalisation hurdle, excluding NAIC, and were appropriately relicensed.
The commissioner’s clarification comes after the conclusion of the recapitalisation exercise, during which NAICOM assessed insurance companies against the applicable capital requirements.
