Nigeria, ARC Sign MoU on Climate Risk Financing

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Nigeria has signed a Memorandum of Understanding (MoU) with the African Risk Capacity (ARC) for cooperation in addressing the impact of extreme weather events in Nigeria as well as providing training support for government personnel.

The signing ceremony, which happened on the sidelines of the annual meetings of the African Development Bank (AfDB) in Busan, Korea on Thursdaycame on the heels of the Bank President, Mr. Akinwumi Adesina’s pledge to support the ARC’s work in the region.

Adesina called for more stakeholders to join the ARC to ensure the availability of insurance against natural disaster risks.

The AfDB and ARC have been partnering since March 2017 to strengthen technical collaboration towards enhancing the risk management infrastructure and policy across Africa and in supporting countries in building resilience against climate shocks.

Speaking on the signing of the MoU, Nigeria’s Finance Minister, Mrs. Kemi Adeosun, congratulated the ARC for the innovative approach it is taking towards climate risk financing and management in Africa.

 Adeosun, in a statement issued by her media aide, Mr. Oluyinka Akintunde,  assured participants that Nigeria will work with the agency to address the impact of extreme weather situations in the country.

The journey towards a mutual technical collaboration with Nigeria began in July 2015 when the ARC team undertook a scoping mission which established the need for Nigeria to give greater consideration to the ARC initiative.

Nigeria was a founding member of ARC, participating in the establishment discussions and the nomination of former minister, Dr. Ngozi Okonjo-Iweala, as the chair of the agency’s governing board.

Nigeria subsequently signed the ARC Establishment Agreement on December 4, 2014, thereby formally becoming a member of the institution.

ARC was established as a specialised agency of the African Union (AU) to help member states improve their capacities to better plan, prepare and respond to extreme weather events and natural disasters.

 Through its first financial affiliate, ARC Ltd, the institution provides African governments with innovative risk management and risk transfer tools and services towards creating a comprehensive pan-African disaster response system.

The Director-General of ARC Mohamed Beavogui expressed appreciation to the Nigerian government for signing the MoU, noting that: “The leadership role of Nigeria on the continent and in the establishment of the ARC makes the signing of a formal MoU quite momentous for our work in the region.

“We want to create systems that can truly protect the livelihoods of the most vulnerable and safeguard the significant development gains made by the country over the years.”

The federal government had earlier in the week announced the extension of its agreement with the AfDB on the Nigeria Trust Fund (NTF) for additional 10 years to assist the development efforts of low-income regional member countries.