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From Okwe Obi, Abuja
After years of complaints over failed promises and poor coverage, the federal government has moved to overhaul Nigeria’s agricultural insurance system, seeking a strategic partnership to make policies more inclusive and responsive to farmers’ realities.
For decades, many farmers, particularly smallholders, have been at the receiving end of what they describe as unfulfilled insurance policies under the Nigeria Agricultural Insurance Corporation (NAIC). Although policies are frequently reviewed, critics say the adjustments often favour large-scale farmers, leaving smallholders inadequately protected when losses occur.
One major concern is the limited scope of coverage. For instance, farmers whose crops are destroyed by cattle are not entitled to insurance compensation, as NAIC policies traditionally cover only natural disasters such as fire outbreaks or flooding. Beyond this, delays in claims processing and implementation have discouraged many farmers from subscribing to insurance schemes. A significant number also lack adequate knowledge of how the insurance process works, further widening the trust gap.
Determined to correct these anomalies, the Federal Government said it is pursuing what it described as a “strategic partnership” to fast-track development in the agricultural insurance ecosystem through policy alignment, reforms, inclusivity and the creation of an enabling environment for productivity.
Minister of State for Agriculture and Food Security, Sabi Abdullahi, disclosed this during a courtesy visit by a delegation from the National Insurance Commission (NAICOM), led by its Chief Executive Officer, Olusegun Omosehin, in Abuja.
Abdullahi explained that the collaboration is designed to accelerate reforms by leveraging the Nigerian Insurance Industry Reform Act (NIIRA) 2025 to modernise the sector and unlock economic opportunities within agriculture.
He said the partnership would also facilitate data-driven solutions through the Ministry’s Data Analytics platform to support index insurance and enhance food security nationwide.
According to him, expanding insurance coverage to cooperative societies such as the All Farmers Association of Nigeria (AFAN) and the Small Scale Women Farmers Organization in Nigeria (SWOFON) is critical and aligns with global best practices.
The minister stressed that such reforms would not erode the identity of cooperatives.
“The ministry required a strong technical working relationship with NAICOM to transform the food system. We are looking at having a Memorandum of Understanding between the Ministry and NAICOM regarding Nigerian Agricultural Insurance Corporation (NAIC) and cooperative reform,” he said.
He added that the reform would be implemented “without losing the cooperative identity regarding its value in terms of integrity, governance among others.”
Abdullahi noted that research has shown that countries with stable economic performance often have strong and viable cooperative structures. Strengthening agricultural cooperatives through accessible insurance, he said, would improve resilience among farmers and reduce vulnerability to shocks.
He further revealed that the government’s economic development agenda places premium emphasis on improved governance and policy harmonisation across sectors, including agriculture and insurance.
“The meeting is a milestone event as it will strengthen collaboration with the commission,” he stated.
In his remarks, NAICOM CEO Olusegun Omosehin said the initiative aligns with the administration’s broader agenda on peace, security and economic stability.
He noted that NAIC, as the country’s specialised agricultural insurer, operates under the supervision of the agriculture ministry and plays a fundamental role in protecting smallholder farmers and strengthening food security resilience.
Omosehin stressed that the visit was aimed at deepening collaboration and aligning policies in the agricultural space.
“The visit is to reveal the partnership to align policies in the agricultural space, such that we can jointly elevate NAIC to a level that it can deliver on its mandate,” he said.
Analysts say that if successfully implemented, the proposed reforms could restore confidence in agricultural insurance, attract more farmers into formal risk protection schemes, and ultimately boost productivity. For a country grappling with food inflation and climate-related risks, a functional and inclusive insurance system may prove pivotal in securing the nation’s food future.
