Over 1.47m smallholder farmers enjoy agricultural insurance cover as NAICOM eyes 3.6m by 2026
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Chuks Udo Okonta
Over 1.47 million smallholder farmers have been covered under Niger IncentiveBased Risk Sharing Sharing System for Agricultural Lending (NIRSAL) agricultural insurance schemes, with a target of 3.6 million by 2026, the National Insurance Commission (NAICOM) has said.
The Commissioner for Insurance/Chief Executive Officer NAICOM Olusegun Omosehin, disclosed this at the 2025 Stakeholders Retreat of the House Committee on Insurance and Actuarial Matters held in Maiduguri, Borno State, adding that In second quarter 2025, 250,000 farmers were insured across eight states under federal initiatives.
Speaking on the retreat theme; “Navigating the New Era of Insurance Regulation: Understanding NIIRA 2025”, Omosehin noted that it reflects the collective commitment to building a modern, inclusive, and resilient insurance ecosystem, adding that the Nigerian Insurance industry Reform Act (NIIRA) 2025 consolidates decades of fragmented legislation into a coherent framework that empowers regulators, protects consumers, and fosters innovation.
He submitted that Agriculture remains the backbone of Nigeria’s rural economy and a vital pillar of food security., stressing that yet, it is also one of the most vulnerable sectors—exposed to climate shocks, pest outbreaks, and market volatility. Insurance offers a powerful tool to de-risk agriculture and empower our farmers, he stated.
According to him, Nigeria loses billions annually to floods, drought, and other climate shocks, yet only a few of our farmers have insurance. “With your support in budget appropriations and subsidies, we can de-risk agriculture sector, protect livelihoods, and strengthen food security. Disasters and accidents shouldn’t always drain public funds. With insurance, government can redirect resources to pressing priorities, hence insurance reduces fiscal burden,” he posited.
The Commissioner for Insurance said statistics has it that in North Central Nigeria, insured rice farmers recorded 11 per cent higher productivity than their uninsured peers—averaging 20 bags/hectare compared to 18 bags/hectare.
According to him, successful agricultural insurance programs include:
• Kaduna ginger farmers received payouts under the NAGS-AP scheme after suffering over 90 per cent crop loss.
• Livestock and encroachment insurance in Sokoto, Bauchi, Adamawa, and Plateau States are reducing farmer-herder conflicts.
He said under NIIRA 2025, NAICOM aims to:
• Expand index-based and parametric insurance for crops and livestock
• Promote bundled insurance products with inputs and credits
• Create a platform of collaboration for operators to Partner with tech firms and agribusinesses to scale digital insurance delivery
• Work with state governments to embed insurance into agricultural extension services.
He said the retreat offers a unique opportunity to:
• Deepen understanding of NIIRA 2025’s provisions and implications
• Strengthen collaboration between legislators, regulators, and industry players
• Explore strategic partnerships with state governments in providing appropriate insurance cover for Govt Asset, agriculture, and infrastructure.
