According to the World Bank, with the support of the Federal and state governments, NAIC was able to offer premium subsidies of up to 50 per cent for a range of agricultural insurance packages in crop, livestock, poultry, and aquaculture.
Since then, a good number of private agric insurance companies have sprung up to insure farmers, in order to reduce the shock of losing their investment at any stage of production and to become financially independent.
With approximately 70 million hectares of land and diversity of agriculture enterprises, Nigeria’s Agriculture Insurance market has the potential to generate a premium of over $600m, according to the Deputy Managing Director/Chief Operating Officer, African Reinsurance Corporation (Africa Re), Mr. Ken Aghoghovbia,
Aghoghovbia, who disclosed this at the third Africa Re Agriculture Insurance Workshop in Lagos, last year, said in the last five years, agriculture insurance received considerable attention from the insurance market players in the country, who have been attracted by the opportunities that stem from the need to commercialise and modernise agric production and the quest of successive governments to diversify the economy.
“We are committed to taking the leadership role in developing agriculture insurance in Nigeria. However, we also acknowledge that on our own, we may not be able to sustain this noble objective. It is in the spirit that we once again have seen it necessary to engage valued and like-minded partners seated here.”
According to experts, agriculture insurance plays a crucial role in bolstering food security by enhancing the resilience of agricultural Small & Medium Enterprises (SMEs).
They note that integrating insurance into agriculture finance channel also facilitates farmers’ access to the necessary financing needed to expand their production, and enabling banks to manage the inherent risks in agricultural lending.
Despite the promises and potential the industry holds, especially at this time, when the agricultural sector has seen a variety of losses, including persistent flooding, fire outbreak, abduction of farmers and herders/farmers’