Nigeria returns to African Trade Insurance Agency

Federal Executive Council on Wednesday gave a approval for Nigeria to rejoin the African Trade Insurance Agency.

Minister of Finance, Mrs. Kemi Adeosun stated this Wednesday while addressing State House correspondents after the Federal Executive Council meeting presided over by President Muhammadu Buhari.

Adeosun said the council approved a memo she presented which harped on the necessity of Nigeria to be part of African Trade Insurance Agency to provide risk guarantee for investment coming into Nigeria as well as export from the country.

The continental insurance agency was established to provide risk guarantee for private investors coming into Nigeria as well as exporters from the country. The multilateral agency which was set up with the support of the World Bank is owned by African government and is registered under the United Nations treaty to provide insurance and promote economic growth in member countries

Adeosun said joining the agency would provide risk guarantees, sovereign guarantee and risk mitigation, disclosing that many African countries are already members of the agency.

Although it was not immediately clear why Nigeria exited its membership, she joins other member African countries such as Benin Republic, Burundi, Congo DR, Kenya, Rwanda, Tanzania and Uganda amongst others.

” So, of projects asking for sovereign guarantees, we will be able to provide that risk mitigation through the African Trade Insurance Agency. Many other countries are already members so Nigeria will be also joining,” she said.

She speaks further:” This agency has an A rating international and is able to guarantee long term projects.

“So what we see as a result of this is that there will be increased level of investments particularly, public private partnership PPP where every often the investors want some guarantee from the government, instead the government issuing sovereign guarantee directly, this agency will step in and issue it.

“It is very similar to MIGA which Multi-lateral Insurance Guarantee Agency that is owned by the International Finance Corporation, IFC.”