The Federal Government of Nigeria has provided agricultural insurance cover for more than 250,000 farmers across eight states in the second quarter of 2025, as part of a renewed effort to protect smallholder farmers from climate shocks, pest outbreaks, and other production risks.

The initiative, supervised by the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) and implemented through the National Insurance Commission (NAICOM), aims to cushion farmers against unforeseen losses and strengthen food security nationwide.

According to reports, the scheme forms part of a broader agricultural risk-management program under which over 1.47 million farmers have already been insured nationwide. The government’s target is to expand coverage to 3.6 million farmers by 2026.

Officials say the impact of the insurance drive is already visible. In parts of North Central Nigeria, insured rice farmers reportedly achieved an average yield of 20 bags per hectare, compared to 18 bags recorded by uninsured farmers representing an 11 percent productivity increase.

The insurance scheme has also provided relief for farmers affected by disasters. Under the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP) initiative, for instance, ginger farmers in Kaduna State who lost more than 90 percent of their crops due to a fungal outbreak have received compensation payouts.

Speaking on the development, NAICOM officials said the expansion of agricultural insurance coverage is crucial to boosting investor confidence in Nigeria’s agriculture sector and reducing farmers’ vulnerability to climate risks.

“Insurance gives our farmers the confidence to invest and expand production. It is a safety net that drives productivity and sustains livelihoods,” a NIRSAL spokesperson noted.

While experts have lauded the program as a step in the right direction, they warn that challenges remain including limited awareness, uneven state-level implementation, and delays in claims processing that could undermine trust among smallholders.

Nonetheless, the federal government maintains that the ongoing insurance rollout will remain a cornerstone of its agricultural transformation strategy, aimed at ensuring resilience, productivity, and long-term food security. Visit www.jocomms.com for more news.