Disasters: AU wants Nigeria to adopt insurance policy
NAN-H-119
Insurance
By Lizzy Agbaji
Abuja, Oct. 20, 2016 (NAN) The African Union’s African Risk Capacity Agency (ARC) has urged the Nigerian Government to key into its comprehensive insurance policy to enhance better response plans and assistance in events of disaster.
Director General of ARC Mohammed Beavogui made the call on during a multi-stakeholders workshop on Thursday, in Abuja.
Beavogui was represented by ARCs Director on Policy and Technical Services, Ms Ekhosuehi Iyahen.
He said ARC is a special agency of the AU that was set up to assist Member States to better manage, prepare and respond to disasters on the continent.
According to him, ARC provides governments with access to immediate funds for early and planned responses to natural disasters taking into cognisance four critical elements; early warning, contingency, planning, insurance and adaptation finance.
He said ARC takes the burden of flood, drought and associated risk away from governments, enabling them to build resilience, better plan, prepare and respond to extreme disaster occurrence.
Beavogui said in order to participate in ARC, countries must undertake several processes including signing of a Memorandum of understanding for in-country capacity building.
He said the workshop aims at initiating the programme in Nigeria and sensitising stakeholders, and how the programme can be rolled out in the country.
Ms Lucy Nyirenda, Head of Government Service, ARC, explained that it takes 12 to 18 months for governments to go through the programme before being eligible to take access insurance.
She said that it is not just all about timing but engaging governments and stakeholders in capacity building programmes for a better understanding of what they are getting into before they can make a payment.
“It is not just an issue of timing but we need to work with the government to ensure that they understand properly and where exactly it can fit in their disaster risk management policy.
“It entails 18 months of working with governments, partners and stakeholders to ensure that we are providing support to government in the most effective manner.
“This is a starting point for ARC and we are hope that in the next 18 months government should be able to make a premium payment and get our support in time of any natural disaster,’’ Nyirenda said.
She disclosed that so far, Senegal, Mauritania and Niger have benefitted 26 million dollars from its insurance policy.
She said the seven countries presently on its insurance programme include Kenya, Mauritania, Niger, Senegal, Gambia, Mali and Malawi.
Mr Muhammad Sani-Sidi, Director-General, NEMA, said it was important for Nigeria to kick start its disaster risk financing, insurance policy and strategy for weather phenomenon such as drought and flood.
Represented by Mr kayoed Fagbemi, Director, Relief and Rehabilitation, NEMA, Sani-Sidi said the 2012 flood incident is a yardstick for measuring the magnitude of looses incurred by farmers and fishermen, among others.
He said insurance claims and payouts could not be carried out on most infrastructural damages due to inaccessibility of insurance policies.
The director-general urged insurance companies to rise up to the challenges of advocating for insurance covers on farmlands houses and critical infrastructures, as it is practically impossible for the government to compensate everyone.
The Permanent Secretary, Federal Ministry of Finance, Dr Mamud Isah-Dutse, said Disaster risk financing is one of the key components of disaster preparedness and response.
Represented by Mr Dele Akinrolabu, Deputy Director, International Economic Relations, in the Ministry, he said Nigeria is increasingly becoming exposed to some of these natural disasters that ARC is designed to address.
He urged participants of the workshop to engage in productive discussions on how best Nigeria can under the ARC framework optimally minimise loses occasioned by these disasters.
Isah-Dutse said Nigeria is currently in an era where all its resources are expected to be mobilised to finance sustainable development.
NAN reports that the workshop was organised in collaboration with NEMA and the Federal Ministry of Finance. (NAN)
LIZ/MST/MST
Edited by Muhammad Suleiman Tola