AN OPEN LETTER TO THE PRESIDENT AND COMMANDER IN CHIEF OF THE ARMED FORCES OF THE FEDERAL REPUBLIC OF NIGERIA ON THE CURRENT STATE OF AFFAIRS IN THE NIGERIA AGRICULTURAL INSURANCE CORPORATION, NAIC
Dear Mr. President,
We feel duty bound by genuine concerns and patriotism to share our thoughts and concerns through this open letter to you on the abysmal state of affairs in the Nigeria Agricultural Insurance Corporation, NAIC.
First, the establishment background: The Nigeria Agricultural Insurance Corporation (NAIC) was established in 1987 by Decree No. 37 of 1987, now an Act of the National Assembly. The Corporation was set up to provide agricultural insurance services to farmers, agro-allied businesses, and other stakeholders in the agricultural sector. The NAIC’s primary mandate is to provide insurance protection to farmers against crop failures, livestock deaths, and other agricultural-related risks. This is aimed at promoting agricultural development, food security, and economic growth in Nigeria.
Pursuant to its mandate, NAIC is a specialized scheme and corporation that necessitates expert management and technical proficiency. To effectively drive its objectives, NAIC requires a team of seasoned professionals with a strong background in banking, insurance, agriculture, and allied sectors. These professionals should possess a unique blend of technical skills, including:
– In-depth agricultural knowledge
– Insurance principles and practices
– Actuarial expertise
– Data analysis and interpretation
– Risk management and mitigation strategies
By leveraging these specialized skills, NAIC can effectively deliver on its mandate and provide innovative insurance solutions to the agricultural sector.
It’s disappointing to note that the Nigerian Agricultural Insurance Corporation (NAIC) has been struggling with ineffective management. The organization’s purpose is to provide agricultural insurance services to farmers, agro-allied businesses, and other stakeholders in the agricultural sector.
To achieve its goals, NAIC requires a team of professionals with expertise in banking, insurance, agriculture, and allied sectors. They should possess technical skills like agricultural knowledge, insurance principles, actuarial skills, data analysis, and risk management.
Unfortunately, the current management team’s lack of expertise and political interference have hindered NAIC’s progress. This has resulted in the organization taking “one step forward and a thousand and one steps backward. It is imperative, therefore, out of patriotism, to suggest that the next management selection prioritizes competence over political considerations with a search light particularly on the core professionals within or outside the corporation. By doing so, we can revitalize the stagnant scheme and restore its effectiveness. A merit-based approach will ensure that the most qualified and capable individuals lead the corporation, driving growth, efficiency, and success.
It is disconcerting to observe that the current leadership of the organization is misallocating its energies. Rather than addressing substantive issues, the management is preoccupied with pursuing frivolous matters and engaging in unwarranted witch-hunts.
A recent example illustrates this point. Following a union dispute that garnered the attention of the Minister of Labour’s office, a negotiated peace agreement was reached. However, the management subsequently disregarded this agreement and implemented punitive transfers targeting staff members who had voiced their concerns.
Regrettably, these transfers were made without consideration for the affected staff members’ skills, competencies, or the lack of suitable replacements. This decision not only undermines employee morale but also jeopardizes the organization’s overall effectiveness.
Your Excellency, the current situation has resulted in significant setbacks, undermining the organization’s progress. We humbly urge that the next Executive Management appointment prioritize competence above all else, driven by patriotism and a commitment to excellence.
Furthermore, we are concerned that the current leadership is misallocating resources. Rather than providing financial compensation for losses due to natural hazards, facilitating credit access for farmers, and promoting best practices, the focus has been on frivolous sensitization programs, questionable contract awards, and personnel decisions that compromise the organization’s integrity. These actions have led to investigations by the EFCC, ICPC, and other law enforcement agencies. I hope that your intervention will restore the organization’s focus on its core objectives and promote transparency and accountability.
Your Excellency, we would like to bring to your attention a critical factor responsible for the plague in the Nigerian Agricultural Insurance Corporation (NAIC). The MD/CEO’s abuse of power has been exacerbated by the Supervising Minister’s failure to implement the statutory provision for the composition of the Board of Directors as outlined in Part 1 of the NAIC ACT. This Act decides the following composition:
– Chairman: Appointed by the President
– MD/CEO: The Corporation’s Managing Director/Chief Executive Officer
– Executive Directors: The Corporation’s Executive Directors
– Governor of Central Bank or Representative: Ensuring financial expertise
– Director General/PS of Ministry of Agriculture or Representative: Providing agricultural insight
– Commissioner of Insurance or Representative: Representing the federal Ministry of Finance
– Two Agricultural Experts: Representing farmers and bringing agricultural production experience
The lack of adherence to this composition has led to a leadership vacuum, enabling the MD/CEO’s mismanagement and corruption. We urge you to intervene and ensure the proper composition of the Board of Directors, as stipulated by the NAIC ACT, to restore transparency, accountability, and effective leadership to the Corporation. The situation at NAIC is dire, with staff facing years of hardship, uncertainty, and salary payment irregularities. The MD/CEO’s recruitment practices and alleged collusion with the Minister of State to install her lawyer friend, who recently exited the Corporation on secondment, Mrs. Kamila K. Kida, as her successor raise serious concerns about corruption and manipulation. It is essential to address the root causes of these issues, including the lack of transparency and accountability in the recruitment process. The organization needs to prioritize merit-based appointments and ensure that the leadership reflects the values of integrity, fairness, and professionalism. The staff’s suffering due to delayed salary payments is unacceptable. Ultimately, it’s crucial to restore transparency, accountability, and good governance at NAIC to prevent further corruption and ensure the organization serves its purpose.
Your Excellency, we wish to bring to your attention a pressing matter regarding the National Insurance Commission’s (NAICOM) recent declaration. In a letter dated March 12, 2025, addressed to the Managing Director/CEO, NAICOM expressed concerns about the corporation’s financial status, specifically highlighting non-compliance with the required statutory Solvency Margin.
The regulatory body noted that the corporation’s going concern is increasingly doubtful due to its financial situation. Consequently, NAICOM mandated the corporation to:
– Make a cash payment: Deposit funds into the company’s account within 60 days.
– Submit a Turnaround Plan: Communicate a comprehensive plan to address the financial concerns within 21 days.
This development underscores the premise of our agitation that NAIC is practically in the wrong hands at the moment.
Your Excellency, it’s crucial to address the management failure of the Nigerian Agricultural Insurance Corporation (NAIC). Former Vice President, Professor Yemi Osinbajo’s involvement in this failure is concerning, given his expertise and expected consideration for the Corporation’s historical development and capacity requirements. The appointment of Folashade Joseph as MD/CEO eight years ago raises questions, especially since her reappointment for a second term in 2021 was based on her performance. However, the Corporation’s collapse suggests that her leadership is ineffective. To prevent similar failures, it’s essential to prioritize competence and expertise in future appointments. A well-grounded individual with experience in agriculture, insurance, and risk management would be ideal. Additionally, considering passionate farmers with proven track records could bring valuable insights to the Corporation. Ultimately, ensuring the Corporation’s success requires careful consideration and a commitment to excellence in leadership appointments.
Your Excellency, we strongly support your call to action, urging the intervention to prioritize professionalism and expertise in the appointment process of the Executive Management Board of Directors. This is crucial in restoring the lost glory of the Corporation under your leadership and the Renewed Hope-Agenda, as well as sustaining the Food Sufficiency Initiative of the government.
To achieve this, I recommend the following:
Competence-based appointments: Ensure that appointments are based on merit, expertise, and experience in agriculture, insurance, and risk management.
Transparent selection process: Establish a transparent and rigorous selection process to identify the most qualified candidates.
Ministerial oversight: Direct the Minister to provide oversight and ensure that the appointment process is fair, transparent, and based on merit.
By prioritizing professionalism and expertise, we can restore the Corporation’s effectiveness and achieve the goals of the Renewed Hope-Agenda and the Food Sufficiency Initiative.
Signed
Abdulquadri Olayiwola
For NAIC Staff
