Nigeria enjoys $5bn cover as ATI member says NAICOM …..commences payment of $50m capital Next week
By NGOZI Onyeakusi ….
The National Insurance Commission (NAICOM) at the weekend confirmed that Nigeria stands to enjoy $5 billion worth of cover as a member of African Trade Insurance Agency (ATI).
The Commissioner for Insurance, Alhaji Mohammed Kari made the confirmation during 2017 Seminar for Insurance Corespondents held in Kaduna, the Kaduna State Capital.
According to him, Nigeria will next week commence the payment of $50 million required to seal up agreement with 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.
Speaking on the benefits derivable from the ATI, Kari 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 twelve 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 and this will give a lot of comfort to foreign investors.
Nigerian 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 places 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.