Joy Agwunobi
The National Insurance Commission (NAICOM) has set its sights on expanding agricultural insurance coverage to 3.6 million smallholder farmers by 2026, a bold target aimed at protecting rural livelihoods and stabilising food production against worsening climate shocks.
Olusegun Omosehin, commissioner for insurance and chief executive officer of NAICOM, announced the projection during the 2025 Stakeholders’ Retreat of the House Committee on Insurance and Actuarial Matters in Maiduguri, Borno State.
He disclosed that over 1.47 million farmers are currently covered under insurance schemes facilitated largely through the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL). But with recent extreme weather already devastating farms and rural communities, Omosehin stressed the urgency of doubling that coverage within a year.
“In the second quarter of 2025 alone, about 250,000 farmers were insured across eight states under various federal agricultural insurance schemes,” Omosehin said. “Our target of 3.6 million by 2026 is not just a projection; it is an urgent necessity to safeguard farmers against climate and market risks that are becoming more severe every season.”
Climate disasters highlight urgency
The 2025 rainy season has already underscored the stakes. Beginning in April, torrential rainfall swept across multiple states, triggering widespread flooding. One of the hardest-hit areas was Mokwa in Niger State, where a devastating flood in May displaced hundreds of families, destroyed infrastructure, and wiped out more than 10,000 hectares of farmland.
Incidents like this, NAICOM argues, show why agricultural insurance must be scaled up rapidly to give farmers a lifeline when disasters strike. Without protection, floods, droughts, and crop diseases threaten not just individual livelihoods but also Nigeria’s broader food security and economic resilience.
Insurance making a difference
Evidence from insured farmers suggests that coverage already delivers tangible benefits. The NAICOM CEO highlighted how agricultural insurance is already transforming outcomes for farmers stating that in North Central Nigeria, insured rice farmers recorded an 11 percent boost in productivity compared to their uninsured counterparts, harvesting an average of 20 bags per hectare against 18.
Similarly, ginger farmers in Kaduna State who lost over 90 percent of their crops due to disease outbreaks received payouts through the Nigeria Agricultural Guarantees Scheme for Agricultural Production (NAGS-AP), helping them to recover and reinvest.
In addition, livestock and encroachment insurance in Sokoto, Bauchi, Adamawa, and Plateau States has contributed to reducing farmer-herder conflicts, a persistent source of instability in the sector.
“Agriculture remains the backbone of Nigeria’s rural economy and the pillar of food security,” Omosehin said, adding “Yet, as recent floods have shown, it is also one of the most vulnerable sectors. Insurance provides farmers with the confidence to invest and expand, even in the face of unpredictable risks.”
Reforms as enablers
Omosehin tied the 3.6 million coverage target to the successful implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which consolidates outdated legislation into a modern framework that strengthens regulatory authority, protects consumers, and fosters innovation.
He urged lawmakers to play a key role in ensuring effective implementation, stating:“The law has been passed, but the real work has just begun.We need ministries, departments, and agencies to comply with compulsory insurance provisions, state governments to align with federal frameworks, and lawmakers to champion awareness at the grassroots.”
Securing Nigeria’s food future
Experts say that if achieved, NAICOM’s 2026 target could help reposition insurance as a central tool for agricultural resilience, encouraging more farmers to adopt improved practices, attract credit, and withstand shocks.
With Nigeria’s population projected to exceed 230 million by 2030, ensuring food security has become a national priority. By embedding insurance into farming, regulators argue, the country can cushion farmers against climate and market volatility, while attracting more financing into the sector.
Omosehin concluded with a call for stronger collaboration: “If we can secure the livelihoods of farmers, we secure the future of Nigeria. The path to 3.6 million insured farmers by 2026 is not just about numbers; it is about national prosperity.”
