More than 1.47 million smallholder farmers across Nigeria are now covered under agricultural insurance schemes, the National Insurance Commission (NAICOM) has disclosed, marking a major stride in efforts to de-risk the agricultural sector and enhance food security.
Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Omosehin, revealed the figures during the 2025 Stakeholders’ Retreat of the House Committee on Insurance and Actuarial Matters held in Maiduguri.
According to Omosehin, the insurance coverage was achieved through the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), which targets 3.6 million insured farmers by 2026.
“In the second quarter of 2025 alone, 250,000 farmers were insured across eight states under various federal agricultural insurance schemes,” he said. “So far, over 1.47 million smallholder farmers have been covered under NIRSAL’s agricultural insurance schemes, and we aim to reach 3.6 million by 2026.”
Insurance Boosting Agricultural Resilience
Omosehin highlighted the measurable benefits of agricultural insurance, noting that insured rice farmers in North Central Nigeria recorded an 11 per cent increase in productivity compared to uninsured farmers — averaging 20 bags per hectare against 18.
He also cited the example of ginger farmers in Kaduna State who received payouts under the NAGS-AP scheme after losing over 90 per cent of their crops, underscoring the role of insurance in cushioning farmers against climate shocks and market volatility.
In addition, livestock and encroachment insurance in states such as Sokoto, Bauchi, Adamawa, and Plateau has helped reduce farmer-herder conflicts — a persistent challenge in Nigeria’s agricultural landscape.
“Agriculture remains the backbone of Nigeria’s rural economy and a pillar of food security, yet it is one of the most vulnerable sectors to climate shocks and market risks,” Omosehin said. “Insurance provides a vital tool to de-risk agriculture and empower farmers to invest confidently.”
The NAICOM boss also urged lawmakers and industry stakeholders to strengthen collaboration toward the effective implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
He described the Act as a landmark piece of legislation that consolidates existing laws into a modern regulatory framework aimed at protecting consumers, promoting innovation, and boosting investor confidence.
“The law has been passed, but the real work has just begun,” Omosehin noted. “We urge the committee to ensure MDAs comply with compulsory insurance provisions, harmonise state and federal policies, and promote public awareness.”
He emphasized that coordinated legislative, regulatory, and operational efforts are crucial for NIIRA 2025 to deliver on its promise of transforming Nigeria’s insurance landscape and driving national prosperity.
President Bola Tinubu signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law in August. The Act introduces comprehensive reforms, including higher capital requirements, compulsory insurance enforcement, and digitization mandates.
It also empowers NAICOM to regulate and supervise all insurance and reinsurance operations within Nigeria, positioning the sector as a key driver in the country’s pursuit of a $1 trillion economy.
