The National Insurance Commission (NAICOM) says more than 1.47 million smallholder farmers across Nigeria are now covered under agricultural insurance schemes, marking a significant milestone in efforts to de-risk the agricultural sector and boost productivity.
Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, disclosed the figures during the 2025 Stakeholders’ Retreat of the House Committee on Insurance and Actuarial Matters held in Maiduguri.
Omosehin said the insurance coverage was facilitated through the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), which aims to reach 3.6 million 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 stated. “Recent statistics show that over 1.47 million smallholder farmers have been covered under NIRSAL’s agricultural insurance schemes, with a target of 3.6 million by 2026.”
Insurance Driving Agricultural Productivity
Omosehin highlighted the tangible impact of insurance on farm yields and resilience. In North Central Nigeria, insured rice farmers recorded an 11% increase in productivity compared to their uninsured counterparts, averaging 20 bags per hectare versus 18.
He also cited the case of ginger farmers in Kaduna State who received payouts under the NAGS-AP scheme after losing over 90% of their crops, demonstrating the value of insurance in mitigating climate and market risks.
Additionally, livestock and encroachment insurance in Sokoto, Bauchi, Adamawa, and Plateau States has contributed to reducing 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 volatility,” Omosehin said. “Insurance provides a vital tool to de-risk agriculture and empower farmers to invest confidently.”
NIIRA 2025: A New Era for Insurance Regulation
Omosehin called for stronger collaboration among lawmakers, regulators, and stakeholders to ensure the effective implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
He described the law as a consolidation of fragmented legislation into a modern framework that empowers regulators, protects consumers, and promotes innovation.
“The law has been passed, but the real work has just begun,” he said. “We urge the committee to ensure MDAs comply with compulsory insurance provisions. We also seek your support to harmonise state policies with federal frameworks and promote awareness in your constituencies.”
He concluded by urging stakeholders to align legislative, regulatory, and operational efforts to ensure NIIRA 2025 delivers on its promise of transforming Nigeria’s insurance landscape and driving national prosperity.
What You Should Know
- In August, President Bola Tinubu signed into law the Nigerian Insurance Industry Reform Act (NIIRA) 2025, a transformative piece of legislation aimed at modernizing Nigeria’s insurance sector and accelerating the country’s journey toward a $1 trillion economy.
- The Act introduces sweeping reforms in the form of stringent capital requirements, compulsory insurance enforcement, and digitization mandates.
- The NIIRA 2025 empowers the National Insurance Commission (NAICOM) to regulate and supervise all insurance and reinsurance businesses operating within Nigeria.
