AIICO Insurance rally support for Nigeria’s agribusiness landscape

Joy Agwunobi

AIICO Insurance Plc has called on the need for collaborative efforts among stakeholders to rejuvenate Nigeria’s agricultural sector, placing a strong focus on the critical role of insurance.

During a recent training session held for members of the Nigerian Association of Insurance and Pension Editors (NAIPE) in Lagos, Leonard Okereafor, the Agric & Emerging Risk Manager at AIICO, highlighted the essential contribution of insurance to the sustainability of Nigeria’s agriculture and agribusiness landscape.

Speaking at the event, Okereafor drew attention to how insurance acts as a safety net for farmers, stabilising their income and boosting their capacity to secure loans. This financial security, he noted, can help farmers concentrate on increasing productivity without being overwhelmed by potential risks.

He elaborated that insurance creates room for strategic partnerships and fosters confidence among farmers, establishing it as an effective risk management mechanism.

According to him, the country’s agricultural transformation hinges significantly on embracing agribusiness, which extends beyond basic farming practices. He described agriculture as being primarily about cultivating land, growing crops, and rearing livestock, while agribusiness encompasses the entire value chain — from input supply, farming, and processing to marketing, retail, and export activities.

He explained that, unlike traditional agriculture, which is often small-scale and focused on food production, agribusiness adopts a broader and more commercial approach aimed at market competitiveness and profitability.

However, Okereafor acknowledged that Nigeria’s agribusiness sector still faces several challenges. These include restricted access to modern agricultural technology, inadequate extension services, poor market linkages, and a lack of financial solutions tailored to the unique needs of agribusinesses. He stressed that overcoming these barriers requires concerted action and innovative strategies to unlock the full potential of the sector.

Turning to AIICO’s initiatives, Okereafor highlighted the company’s diverse agricultural insurance offerings tailored to Nigerian farmers and agribusiness investors. He explained the difference between Indemnity and Index-based insurance, stating, “Under Indemnity insurance, we offer poultry, fish farm, livestock, plantation fire, farm property/produce, and multi-perils crop. Under Index-based insurance, we offer area yield index-based, weather index-based, as well as bundled/hybrid policies.”

He went into detail about specific insurance policies, including poultry insurance, which protects various types of birds from risks like fire and diseases. “This product covers birds, broilers, layers, parent stock, grandparents stock, hatchery stock, cockerel, ornamental birds against death as a result of fire, lightning, windstorm damage, flood, uncontrollable disease, and accident,” he stated, Similarly, he mentioned that the fishery insurance policy safeguards fish and fish ponds against similar threats.

Regarding livestock insurance, Okereafor conveyed that this policy covers a wide range of animals, including cattle, sheep, goats, rabbits, and pigs, ensuring protection against deaths caused by fire, lightning, windstorms, floods, accidents, and uncontrollable diseases.

He also pointed out that the plantation insurance policy protects crops such as cocoa, sugarcane, and oil palm from loss or damage caused by fire, lightning, floods, windstorms, and aircraft perils.

Furthermore, he noted that the farm property insurance policy offers coverage for farm assets like warehouses and equipment, safeguarding them against loss or damage due to risks like fire, burglary, lightning, floods, windstorms, explosions, earthquakes, and impacts.

Lastly, Okereafor highlighted the Multi-Perils Crop Insurance (MPCI) policy, which insures crops against loss or damage from various threats, including fire, lightning, explosions, and pest outbreaks. He explained that this policy covers production costs for crops that are lost or damaged from the planting phase up to maturity, underscoring AIICO’s commitment to supporting farmers in mitigating risks associated with agricultural production.