By David Akinmola
The National Insurance Commission (NAICOM) said over 1.47 million smallholder farmers across the country are covered under agricultural insurance schemes.
The commission said the milestone reflects ongoing efforts to de-risk Nigeria’s agricultural sector, enhance food security and protect farmers’ livestock from climate-related and market shocks.
This, the Commissioner for Insurance, Olusegun Omosehin, disclosed during the 2025 Stakeholders’ Retreat of the House Committee on Insurance and Actuarial Matters, in Maiduguri, Borno state.
According to him, the insurance coverage was facilitated through the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), which aims to expand coverage to 3.6 million farmers by 2026.
“In the second quarter of 2025 alone, 250,000 farmers were insured across eight states under various federal agricultural insurance initiatives. Recent data show that over 1.47 million smallholder farmers have been covered under NIRSAL’s insurance schemes, with the number expected to rise to 3.6 million by 2026,” he said.
Omomsehin explained that agricultural insurance was already yielding measurable economic benefits. He noted that insured rice farmers in North Central Nigeria recorded 11 per cent higher productivity than their uninsured peers, averaging 20 bags per hectare compared to 18.
Omosehin also cited cases such as ginger farmers in Kaduna who received compensation under the NAGS-AP scheme after suffering more than 90 per cent crop losses, demonstrating the practical value of insurance in mitigating climate and market shocks.
He added that livestock and encroachment insurance programmes in Sokoto, Bauchi, Adamawa and Plateau states have contributed to reducing farmer-herder conflicts, enhancing rural stability and encouraging investment in agricultural ventures.
“Agriculture remains the backbone of Nigeria’s rural economy and a pillar of food security. Yet, it is also among the most vulnerable to climate shocks and market volatility. Insurance provides a vital tool to de-risk agriculture and empowers farmers to invest confidently,” he said.
Speaking on the newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025, the commissioner described the law as a game-changer that consolidates fragmented regulations into a single, modern framework to strengthen oversight, protect consumers and foster innovation.
