NAICOM, Agriculture Ministry Move to Reform Farm Insurance
The National Insurance Commission and the Federal Ministry of Agriculture and Food Security have pledged a strategic partnership aimed at strengthening agricultural insurance and advancing the Federal Government’s food security drive.
The commitment was reached during a high-level meeting in Abuja between the Commissioner for Insurance, Mr Olusegun Ayo Omosehin, and the Minister of State for Agriculture and Food Security, Sen. Dr Aliyu Sabi Abdullahi, at the Ministry’s headquarters.
Both institutions agreed to align policies, deepen collaboration and fast-track reforms designed to protect smallholder farmers, de-risk agricultural investments and support the current administration’s broader food security objectives.
Central to the discussions was the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which stakeholders described as a transformative framework for modernising the insurance sector. The Act is expected to reposition institutions within the industry to better respond to emerging risks and national development priorities.
A key focus was the restructuring and elevation of the Nigerian Agricultural Insurance Corporation (NAIC), Nigeria’s specialised agricultural insurance institution. The meeting resolved that NAIC must operate effectively within the new architecture created by NIIRA 2025 to enhance its operational impact and deliver meaningful protection across the agricultural value chain.
The two parties also stressed the importance of data integrity and technical capacity in expanding index and parametric insurance solutions. The Ministry’s newly established Federal Department of Agricultural Data Analytics is expected to coordinate the collection, validation and governance of agricultural data critical to the design of sustainable risk-transfer products.
To ensure seamless implementation, both sides agreed to establish a joint technical working arrangement and convene a dedicated platform to drive reform execution and policy coordination.
The collaboration is expected to widen financial protection for smallholder farmers, reduce vulnerability to climate and disaster-related shocks, and attract greater private investment into agriculture by lowering risk exposure.
Stakeholders at the meeting underscored that agricultural insurance remains a critical pillar in building resilience against natural disasters and climate shocks, which are increasingly threatening farm productivity. With commercial insurers covering only a limited share of agricultural risks, NAIC’s specialised mandate was described as indispensable to achieving a resilient and inclusive agricultural sector capable of driving broader economic growth.
