The National Insurance Commission (NAICOM) and the Ministry of Agriculture have agreed to align policies, deepen collaboration, and accelerate reforms that would strengthen agricultural insurance, protect smallholder farmers, and support the current Administration’s food security agenda.
This commitment was reinforced during the visit of the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin to the Minister of State for Agriculture and Food Security Sen. Dr. Aliyu Sabi Abdullahi in his Office at the Federal Ministry in Abuja.
According to a statement made available on Saturday by NAICOM, the meeting discussed the passage of NIIRA 2025, which presents an opportunity to modernize the insurance sector and align institutional frameworks to better support smallholders and national food security objectives.
The NAICOM and the Ministry committed to close policy alignment to ensure Nigerian Agricultural Insurance Corporation (NAIC) and Nigeria’s sole specialized 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 (NIIRA) 2025. And, to enhance its operational impact.
The Ministry’s newly created Federal Department of Agricultural Data Analytics would coordinate efforts to gather, validate, and govern agricultural data critical for index insurance and other parametric solutions. Both parties emphasized the need for capacity building to strengthen technical expertise across the sector.
A technical working relationship and a special joint platform/meeting between the Ministry and NAICOM would be organized for effective implementation of reforms.
These actions, according to the statement, aimed 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 highlighted the central role of agricultural insurance in protecting farmers and building resilience against natural disasters and climate shocks — indispensable elements of food security.
With commercial insurers covering only a limited share of agricultural risk, NAIC as the specialized agricultural insurance institution remains vital.
