The National Insurance Commission (NAICOM) has announced plans to extend agricultural insurance to 3.6 million smallholder farmers by 2026, in collaboration with the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).

So far, over 1.47 million farmers have been insured nationwide, providing crucial protection against crop losses. In Kaduna, for instance, ginger farmers who lost up to 90% of their yields received compensation under the NAGS-AP scheme.

Data shows insured rice farmers in North Central Nigeria recorded an 11% productivity boost, harvesting 20 bags per hectare compared to 18 bags for uninsured counterparts.

The initiative aligns with reforms under the Nigerian Insurance Industry Reform Act (NIIRA 2025), aimed at expanding access and improving regulatory efficiency.

NAICOM says achieving the 3.6 million target will rely on collaboration among government, insurers, and farmer groups. The goal is to boost food security, stabilize farm incomes, and attract investment into agriculture.

“Insurance gives farmers the confidence to invest and grow,” a NAICOM spokesperson said.