At last, Nigeria keys into African Trade Insurance $7bn growing portfolio

Nigeria is set to conclude the documentation and signing of Memorandum of Understanding (MOU) with the African Trade Insurance (ATI) agency to be part of the continental insurance investment protection deal.

African Trade Insurance expects its annual insured trade and investment portfolio to double to $7 billion within five years (2023), driven by new members including Ghana and Nigeria, which are about finalizing their registrations.

This is expected to happen this week in Nigeria, as ATI holds its Investment & Trade Forum in Abuja with key government officials in attendance. The Forum with the theme “De Risking Trade and Investments in Nigeria” will mark formal registration of Nigeria in the continental body.

Mohammed Kari, commissioner for Insurance and CEO of the National Insurance Commission (NAICOM) disclosed at the 2018 Educational Conference of the Chartered Insurance Institute of Nigeria (CIIN) that the Federal Government has given approval for Nigeria’s enrolment into membership of ATI, stating that it is a healthy development for the nation’s insurance industry.

According to Kari, that will further boost the contribution of insurance to economic growth as investments coming into Nigeria will have domestic protection, and that will impact positively on investor confidence.

African Trade Insurance Agency was meant to provide risk guarantee for investments coming into Nigeria as well as export from the country.

The continental insurance agency  was set up with the support of the World Bank, owned by African government and is registered under the United Nations treaty to provide insurance and promote economic growth in member countries

The investment risk insurer is owned by 14 African nations and other organisations such as the African Development Bank.

It was formed in 2001 with World Bank support to offer insurance for large investment and financing projects against risks such as sovereign default, war and insolvency, to spur investment by companies and private equity into Africa.

Major insurance projects on the continent insured by ATI include electricity generation projects in Kenya and a $200 million mining project in the Democratic Republic of the Congo.