By Kikelomo Okere
The Federal Government is pushing a sweeping overhaul of Nigeria’s agricultural insurance system, tightening collaboration between the National Insurance Commission and the Federal Ministry of Agriculture and Food Security to better shield farmers and stabilise food production.
The reform drive follows high-level talks in Abuja between Insurance Commissioner Olusegun Omosehin and Agriculture Minister of State Aliyu Abdullahi, with both sides aligning policies to fast-track changes across the insurance ecosystem.
At the centre of the push is the Nigerian Insurance Industry Reform Act 2025, seen as a turning point to modernise the sector and reposition insurance as a frontline tool for managing agricultural risks. Authorities plan to restructure and strengthen the Nigerian Agricultural Insurance Corporation, giving it greater capacity to deliver coverage across the entire farming value chain.
The reform package goes beyond institutional changes. Government is prioritising data-driven insurance, with the newly created Federal Department of Agricultural Data Analytics expected to power index and parametric insurance models—products designed to trigger payouts based on weather or climate indicators rather than lengthy loss assessments.
A joint technical platform between regulators and the ministry will drive implementation, focusing on expanding insurance penetration, improving risk modelling, and building technical expertise across the sector.
The broader goal is clear: reduce farmers’ exposure to climate shocks, unlock financing, and make agriculture more attractive to private investors who have long stayed away due to high risk.
