By Maduka Nweke
The National Insurance Commission (NAICOM) has confirmed that Nigeria stands to enjoy $5 billion insurance cover as a member of African Trade Insurance Agency (ATI).
Mohammed Kari, the Commissioner of Insurance made the confirmation during the 2017 Seminar for Insurance Corespondents in Kaduna, Kaduna State.
He said that Nigeria would this week commence the payment of $50 million required to seal up agreement with the agency. Recall that the Federal Executive Council (FEC) recently gave approval that Nigeria joins ATI so as to enjoy risk protection being offered by the agency. Kari, while speaking on the benefits, said ATI is an entity that provides certain classes of insurance cover and sovereign guarantees which ordinarily cannot be provided by countries. He noted that Nigeria resolved to be a member in order to enjoy political risk insurance and catastrophic insurance, among others, being issued by the agency which only member companies enjoy.
“We have decided as a country to join ATI. This company issues political risk insurance and catastrophic insurance but cannot offer these insurance to you unless you subscribe, this has been on our table for the last 12 years trying to convince the government on the need to join so that Nigerian investors and investors coming into Nigeria can benefit from the protection this company offers which gives a lot of comforts to foreign investors. “The Federal Government is no more issuing sovereign guarantee because of economic reasons but this company does. So this will encourage foreign investors to come into the country knowing full well there is source of guarantee which was not there before.
Insurance industry can benefit because this class of insurance can only be placed locally, so ATI will first consider Nigerian insurance companies and intermediaries licensed by the NAICOM as agents to pass through these business and make income. It also a means or channel that will bring in funding. It will equally offer Nigeria the experience which will make her in the future decide to have her own local trade insurance”, he assured.