The Federal Government has taken steps to overhaul Nigeria’s agricultural insurance framework through a strategic partnership between the National Insurance Commission and the Federal Ministry of Agriculture and Food Security.
The initiative, aimed at strengthening farmer protection and advancing national food security, followed a high-level meeting in Abuja between the Commissioner for Insurance, Olusegun Omosehin, and the Minister of State for Agriculture and Food Security, Aliyu Abdullahi.
Reform Backed by New Insurance Law
Central to the discussions was the implementation of the Nigerian Insurance Industry Reform Act 2025, described by both institutions as a major opportunity to modernise the insurance sector and reposition agricultural insurance as a pillar of farmer resilience and food security.
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According to a statement from NAICOM, the reform law provides a framework to realign institutions in ways that better support smallholder farmers and national food security goals.
A key focus is restructuring the Nigerian Agricultural Insurance Corporation, currently the country’s sole specialised agricultural insurance institution.
Officials agreed that NAIC must be elevated and repositioned to operate more effectively within the new insurance architecture established under the 2025 reform law.
Expanding Risk Coverage and Data Capacity
The partnership is expected to enhance NAIC’s operational capacity while improving insurance coverage across the agricultural value chain.
Both parties emphasised the importance of data and technical expertise in expanding insurance penetration.
The ministry’s newly created Federal Department of Agricultural Data Analytics will coordinate efforts to gather and validate agricultural data critical for index-based and parametric insurance products.
They also agreed to establish joint technical working platforms to drive implementation and ensure policy alignment.
The reforms aim to:
- Expand financial protection for smallholder farmers
- Reduce vulnerability to climate and disaster risks
- Encourage private investment in agriculture by lowering risk exposure
Contribute to broader economic growth through a more resilient agricultural sector
Officials noted that commercial insurers currently cover only a small share of agricultural risks, leaving many farmers exposed to climate-related shocks and other disruptions.
The collaboration marks a significant policy step toward integrating insurance reform into Nigeria’s broader food security strategy, with regulators and sector stakeholders expected to work closely to implement the changes.
