Nigeria is intensifying efforts to protect food production as the National Insurance Commission and the Federal Ministry of Agriculture and Food Security agreed on new measures to de-risk agriculture and shield smallholder farmers from climate-related losses.
The decision followed a policy meeting in Abuja between Insurance Commissioner Olusegun Ayo Omosehin and Minister of State for Agriculture Aliyu Sabi Abdullahi, where agricultural insurance was positioned as a core instrument in Nigeria’s food security strategy.
Officials noted that farmers face increasing threats from flooding, drought and extreme weather, while private insurers currently cover only a small share of agricultural risk.
They said the Nigeria Agricultural Insurance Corporation remains central to coverage expansion but requires restructuring to align with the new insurance regulatory framework.
Data-Driven Insurance and Investment ProtectionBoth agencies agreed to jointly strengthen agricultural data systems to support index-based and parametric insurance products.
The collaboration will focus on data collection, validation and governance to improve transparency, risk modelling and faster claims settlement.
They also highlighted the need for technical capacity development across farming and insurance value chains to enable innovative risk-transfer solutions.
Analysts say broader insurance coverage could attract more private investment into agriculture by reducing production risk and protecting rural livelihoods, particularly for smallholder farmers who account for a large share of national food output.
The partnership signals a shift toward embedding insurance within agricultural planning, a move expected to boost resilience, encourage inclusive growth and reinforce national food security objectives.
Written by Bimbo Oyetunde