The National Insurance Commission (NAICOM) has announced that over 1.47 million smallholder farmers in Nigeria are now covered by agricultural insurance schemes.
This significant milestone is part of an effort to reduce risks in the agricultural sector and boost national food security.
Key Points:
- Goal: NAICOM and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) aim to cover 3.6 million farmers by 2026.
- Impact: Commissioner for Insurance, Olusegun Omosehin, noted that insured farmers have shown increased productivity (e.g., rice farmers saw an 11 per cent yield increase) and greater resilience against climate shocks and market volatility.
- New Law: The Commissioner also called for effective implementation of the new Nigerian Insurance Industry Reform Act (NIIRA) 2025, a landmark law designed to modernise the insurance sector and enforce compulsory insurance provisions.
This coverage is vital for empowering farmers to confidently invest in their farms, which form the backbone of Nigeria’s rural economy.
