250,000 farmers insured across eight states in Q2 2025 under Federal Initiatives – NAICOM
250,000 farmers insured across eight states in Q2 2025 under Federal Initiatives – NAICOM
Nike Popoola
The National Insurance Commission (NAICOM) has disclosed that 250,000 farmers were insured across eight states in the second quarter of 2025 under federal agricultural insurance initiatives, as part of ongoing efforts to strengthen risk protection and promote food security across Nigeria.
Commissioner for Insurance, Segun Omosehin, revealed this in Maiduguri, Borno State, during the 2025 Stakeholders’ Retreat of the House Committee on Insurance and Actuarial Matters, themed “Navigating the New Era of Insurance Regulation – Understanding the Nigerian Insurance Industry Reform Act 2025.”
According to his presentation obtained by Dailyeconomy today, Omosehin said the federal and private sector-backed schemes are transforming Nigeria’s agricultural landscape by protecting farmers from climate shocks, pest outbreaks, and other risks that threaten productivity and livelihoods.
He stated that over 1.47 million smallholder farmers have so far been covered under the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) insurance schemes, with the number projected to rise to 3.6 million by 2026.
Citing recent impact data, the NAICOM boss 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. He attributed this performance gap to increased confidence and investment among insured farmers.
Omosehin also highlighted success stories across the country, including Kaduna ginger farmers who received insurance payouts under the NAGS-AP scheme after suffering over 90 per cent crop loss. Similarly, livestock and encroachment insurance in Sokoto, Bauchi, Adamawa, and Plateau States are helping reduce farmer-herder conflicts by cushioning financial losses and fostering peaceful coexistence.
According to him, the newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025 will expand index-based and parametric insurance for crops and livestock, promote bundled products with inputs and credit, and encourage collaboration with tech firms and agribusinesses to scale digital insurance delivery.
“The agriculture-insurance linkage is no longer optional, it is a strategic imperative,” he said. “With stronger partnerships, technology adoption, and supportive legislation, we can secure our farmers, stabilise rural economies, and protect national food security.”
He reaffirmed NAICOM’s commitment to working with the legislature, state governments, and industry stakeholders to embed insurance in agricultural extension services and achieve sustainable development goals through financial inclusion and risk resilience.
