Rex Insurance has entered into a key partnership with the Nigerian Meteorological Agency (NiMet) to roll out weather-driven index insurance solutions aimed at shielding Nigeria’s smallholder farmers from the increasing impact of climate-related risks.
The collaboration indicates a shift in agricultural insurance practice, moving beyond traditional compensation models to a more proactive, data-led approach that integrates real-time weather intelligence into farming decisions. According to the insurer, the initiative is designed to support climate-smart agriculture by equipping farmers with timely insights while providing financial protection against extreme weather events.
Under the arrangement, Rex Insurance will harness NiMet’s location-specific weather data to power its Weather and Hybrid Index Insurance products. These solutions are structured to guide farmers on critical activities such as optimal planting periods, crop management strategies, and the efficient use of inputs including seeds and fertilisers. At the same time, the system is configured to trigger automatic payouts when predefined weather thresholds such as drought, flooding, or erratic rainfall—are breached.
This dual approach, the company explained, ensures that farmers are not only compensated after losses occur but are also better positioned to anticipate and mitigate risks before they escalate. By embedding predictive weather insights into insurance offerings, the initiative aims to improve farm productivity, reduce exposure to climate shocks, and stabilise rural incomes.
Speaking at the memorandum of understanding (MoU) signing, Ebelechukwu Nwachukwu, managing director and chief executive officer of Rex Insurance, said the partnership reflects a broader ambition to transform the role of insurance within the agricultural value chain.
She noted that the company is seeking to reposition insurance as a tool that combines financial protection with actionable intelligence. By integrating weather data into its products, she said, farmers would be better equipped to plan, adapt, and safeguard their livelihoods in an increasingly unpredictable climate environment.
Nwachukwu further explained that the solution would be deployed through Rex Insurance’s distribution network, with extension agents using mobile-enabled devices to deliver both insurance services and weather advisory support to farmers, including those in remote and underserved communities. This, she said, is expected to address the longstanding challenge of low insurance penetration in rural areas while strengthening farmers’ resilience to climate variability.
She added that weather-indexed insurance offers a more efficient risk management framework, particularly at a time when extreme weather events are becoming more frequent and continue to threaten agricultural yields, household incomes, and national food security.
On his part, Charles Anosike, director-general and chief executive officer of NiMet, highlighted the growing vulnerability of Nigeria’s agricultural sector to climate change. He noted that fluctuations in weather patterns are increasingly affecting crops, livestock, and rural livelihoods, making data-driven solutions more critical than ever.
Anosike explained that weather index insurance relies on measurable weather parameters, rather than on-the-ground loss assessments, to determine when claims should be paid. When combined with structured crop calendars, he said, such systems enable farmers to make more informed decisions regarding planting and harvesting cycles.
He added that NiMet’s expertise in weather observation and forecasting would play a key role in ensuring the effectiveness and reliability of the initiative.
The partnership will initially be piloted under the GIZ–EU-funded VACE Programme, a project designed to demonstrate the viability of innovative agricultural solutions and accelerate their adoption across Nigeria. The programme, formally known as the EU-VACE TARED project, is funded by the European Union and Germany’s development ministry and implemented by the German development agency Deutsche Gesellschaft für Internationale Zusammenarbeit in collaboration with the Nigerian government.
Rex Insurance said the initiative underscores its commitment to advancing agricultural insurance through technology-driven innovation and strategic partnerships. By leveraging data and expanding access to tailored insurance solutions, the company aims to close protection gaps among underserved farmers and contribute to building a more resilient agricultural sector.
Lower NGX trading cost and seek growth through competitiveness