The Federal Government is preparing to overhaul the agricultural insurance framework through a strategic partnership between the National Insurance Commission and the Federal Ministry of Agriculture and Food Security.
The collaboration seeks to strengthen protection for farmers and support national food security goals.
A statement issued by NAICOM on Saturday detailed the initiative. It followed a high-level meeting in Abuja between the Commissioner for Insurance, Olusegun Omosehin, and the Minister of State for Agriculture and Food Security, Aliyu Abdullahi.
The meeting focused on aligning policies, deepening collaboration, and accelerating reforms throughout the agricultural insurance ecosystem.
Discussions centred on the implementation of the Nigerian Insurance Industry Reform Act 2025. Both institutions viewed the legislation as a critical opportunity to modernise the sector and establish agricultural insurance as a key pillar of farmer resilience and food security.
“The passage of NIIRA 2025 presents an opportunity to modernise the insurance sector and align institutional frameworks to better support smallholders and national food security objectives. Policy alignment commitment: NAICOM and the ministry are committed to close policy alignment to ensure the Nigerian Agricultural Insurance Corporation, Nigeria’s sole specialised agricultural insurance institution, is positioned to deliver meaningful protection across the agricultural value chain.
“The meeting agreed NAIC must be elevated and restructured to operate effectively within the new insurance architecture established by the Nigerian Insurance Industry Reform Act 2025. And, to enhance its operational impact.”
The partnership is expected to build the operational capacity of the Nigerian Agricultural Insurance Corporation, recognised as the country’s specialised agricultural insurance provider. It will also improve risk coverage across various farming activities.
Both parties highlighted the importance of data and technical capacity in expanding insurance penetration and promoting the adoption of innovative risk solutions, including index and parametric insurance products.
“Data and capacity priorities: The Ministry’s newly created Federal Department of Agricultural Data Analytics will coordinate efforts to gather, validate, and govern agricultural data critical for index insurance and other parametric solutions. Both parties emphasised the need for capacity building to strengthen technical expertise across the sector. Joint technical working arrangements: A technical working relationship and a special joint platform/meeting between the Ministry and NAICOM will be organised for the effective implementation of reforms.
“These actions aim to expand financial protection for smallholder farmers, reduce vulnerability to climate and disaster risk, attract investment into agriculture by reducing risk exposure, and contribute to the Administration’s objective of a resilient, inclusive agricultural sector and broader economic growth.”
The meeting emphasised the vital role of agricultural insurance in mitigating climate-related and disaster risks that threaten farm productivity and rural livelihoods. It noted that commercial insurers currently cover only a limited portion of agricultural exposure.
Both the ministry and NAICOM agreed that stronger agricultural insurance coverage would help attract private investment into farming by lowering risk. They also stated that it would support broader economic growth through a more resilient agricultural sector.
The collaboration represents a major policy advancement in linking insurance reform with Nigeria’s food security strategy. Regulators and sector stakeholders are expected to collaborate through joint technical platforms to ensure effective implementation.
