FG Provided Risk Cover for Over 199,000 Farmers

News in brief:

-The Federal Government provided agricultural risk protection worth ₦700 billion to 199,275 farmers through NAIC in two years.

-The initiative aims to reduce farming risks, strengthen agricultural financing, and boost domestic food production.

Nigeria's federal government disclosed that 199,275 farmers benefited from agricultural risk protection valued at about ₦700 billion over the past two years.

The Minister of Agriculture and Food Security, Abubakar Kyari, made this announcement, noting that the support was delivered through the Nigerian Agricultural Insurance Corporation.

Insurance Support to Reduce Farming Risks

Kyari explained that the initiative was designed to deepen agricultural financing, reduce production risks, and attract more investment into the sector as Nigeria intensifies efforts to boost domestic food production.

He noted that the insurance coverage has strengthened farmers’ ability to manage risks associated with climate shocks, pests, diseases, and other uncertainties that frequently threaten agricultural investments.

Premium Income and Claims to Farmers

According to the minister, the intervention has also stimulated activity in the agricultural insurance industry.

NAIC has generated about ₦2.43 billion in premium income while paying out approximately ₦200 million in claims to farmers affected by various production risks.

Complementing Broader Agricultural Reforms

Kyari said the initiative complements several other government programmes aimed at increasing agricultural productivity.

These include the distribution of more than 1.9 million bags of fertiliser to farmers, the introduction of improved crop varieties, and the expansion of mechanisation services across the country.

He added that the government is also investing in agro-processing infrastructure and strengthening partnerships with development organisations and foreign governments to improve fertiliser production, facilitate technology transfer, and enhance regulatory compliance.

Strengthening Value Chains and Agribusiness Growth

According to the minister, the combined interventions are expected to strengthen agricultural value chains, attract private sector investment, and position Nigeria as a stronger participant in global agricultural markets.

Kyari said improved access to finance, insurance, and modern inputs would enable farmers to scale up production and transition from subsistence farming to commercially viable agribusinesses.

He added that institutions such as the Bank of Agriculture (BoA) and the National Agricultural Development Fund (NADF) are also being leveraged to expand financing and support for farmers and agribusinesses nationwide.