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Chuks Udo Okonta
Brokers have taken the bold step to change the narrative that less than three per cent of agricultural activities in Nigeria are insured.
This informed the focus of the Nigerian Council of Registered Insurance Brokers, Lagos Area Committee (NCRIB-LAC) CEOs’ general meeting, March edition, themed: ‘Revisiting Agriculture Insurance in Solving Nigeria’s Current Food Crisis’ which held today in Lagos.
The Head, Agric Business Royal Exchange General Insurance Company Abdulazeez Ajibola, who was the Guest Speaker at the event, said smallholder farmers account for 90 per cent of Nigerian agriculture, stating that there are about 38 million registered smallholder farmers and that 70 per cent of the smallholder households in Nigeria participate in crop farming, only 19 per cent participate in livestock farming and just 11 per cent participate in both.
He submitted that an average farm size is less than two hectares, which is characterized by low productivity and high drudgery, low education and financial literacy level and operations characterized by low technology in inputs.
He submitted that insurance has the potential to play a significant role in protecting farmers from the risks of climate change, pests and diseases and other natural disasters.
The Nigerian agriculture insurance market, he said has the potential to generate a premium of over $600 million annually.
According to him, the highest the industry has done was in 2021 with a cumulative of $15 million.
Abdulazeez noted that the Nigerian agricultural insurance industry is still nascent, adding that agric Insurance only accounts for a small percentage of all insurance premiums sold, indicating a disproportionate underfunding of the agricultural sector.
Chairman NCRIB-LAC, Ademola Olutusin, implored brokers and insurers to harness insurance opportunities in the agric sector, stressing that with insurance, farmers and their farms will be protected against risks, which would also bring about food security.
