Nigeria's Insured Farmers Hit 1.47m, Targets 3.6m By 2026

News in Brief

-Nigeria's insurance commission has covered over 1.47 million smallholder farmers as of Q2 2025, driving higher productivity and providing safety nets.

-CEO Olusegun Omosehin calls for stakeholder support to help achieve Nigeria's target of protecting 3.6 million farmers by 2026.

The National Insurance Commission (NAICOM) has revealed that with the addition of 250,000 Nigerian smallholder farmers enrolling in Q2 2025, the number of insured farmers under the government’s agricultural insurance schemes is now over 1.47 million.

The CEO of NAICOM and Commissioner for Insurance, Olusegun Omosehin, announced this new milestone during the 2025 Stakeholders’ Retreat of the House Committee on Insurance and Actuarial Matters in Maiduguri. 

He noted that these achievement marks a major turning point in efforts to protect rural livelihoods and drive food security nationwide while contributing to Nigeria’s target of expanding agricultural insurance coverage to reach 3.6 million farmers by 2026

Nigeria's Agricultural Insurance Boom

Aside from the increased penetration of the scheme across states in the country, the commissioner also revealed that the insurance coverage, largely facilitated by the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), has started to reshape rural farming outcomes. 

“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. Insurance provides a vital tool to de-risk agriculture and empower farmers to invest confidently,” Omosehin said.

According to him, insured rice farmers in North Central Nigeria achieved 11 per cent higher yields than their uninsured counterparts, averaging 20 bags per hectare compared to 18.

Likewise, ginger farmers in Kaduna who lost over 90 per cent of their crops due to disease outbreaks received compensatory payouts, enabling them to reinvest and stabilise their livelihoods.

Livestock insurance in Sokoto, Bauchi, Adamawa, and Plateau has also played a role in reducing farmer-herder conflicts, an ongoing challenge in rural Nigeria. 

Call for support for NIIRA 

Explaining how important the insurance scheme is to food security and farmers' survival in Nigeria, Omosehin pointed out how the just-concluded 2025 rainy season, which saw severe flooding in Niger State and other regions, showed how vulnerable and unprotected farmers in rural communities remain.

He emphasised the importance of the Nigerian Insurance Industry Reform Act (NIIRA 2025), signed by President Bola Tinubu in August, which consolidates outdated insurance laws into a streamlined framework, empowering regulators and fostering innovation. 

With NIIRA 2025, insurance will grow into a central tool for agricultural resilience, encouraging improved farming practices, attracting credit, and helping farmers withstand shocks. 

The commissioner called on the stakeholders to support the implementation of the policy.

"The law has been passed, but the real work has just begun. 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 said.