Insurance Seen as Cornerstone for Agricultural Resilience and Food Security

The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, has underscored the critical role of insurance in safeguarding Nigeria’s agricultural sector, enhancing food security, and building climate resilience.

Speaking at the 2025 Stakeholders’ Retreat of the House Committee on Insurance and Actuarial Matters in Maiduguri, Borno State, themed “Navigating the New Era of Insurance Regulation Understanding NIIRA 2025,” Omosehin described agricultural insurance as a vital tool for de-risking the sector and empowering farmers.

Agriculture remains the backbone of Nigeria’s rural economy and a key pillar of food security. Yet, it faces mounting threats from climate change, pest infestations, and market instability. Insurance provides the protection farmers need to recover, rebuild, and remain productive,” he stated.

Highlighting recent interventions, the NAICOM boss cited relief efforts for Kaduna ginger farmers who received compensation after suffering over 90 percent crop loss under the NAGS-AP scheme. He added that in states such as Sokoto, Bauchi, Adamawa, and Plateau, livestock and encroachment insurance have been introduced to mitigate farmer-herder conflicts.

Under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, Omosehin said NAICOM is working to deepen agricultural insurance coverage through expanded index based and parametric products, partnerships with agritech firms, and collaboration with state governments to integrate insurance into agricultural extension services.

He noted that agricultural insurance extends beyond protecting farmers, serving as a stabiliser for the national economy.
“Nigeria loses billions annually to floods, droughts, and other climate related shocks. Insurance reduces fiscal pressure on government resources, enabling public funds to be channelled toward education, healthcare, and infrastructure rather than disaster relief,” he said.

Omosehin also urged for the insurance of government assets, stressing that insuring public infrastructure roads, schools, and hospitals would prevent massive financial losses and provide a sustainable funding base for development.

With enforcement, the government’s emergency spending can be reduced by up to 40 per cent. Insurance not only protects investments but also mobilises long term capital for infrastructure, housing, and industrial growth.

He reaffirmed that with strong legislative support, NAICOM’s vision under NIIRA 2025 is to make agricultural insurance a central part of Nigeria’s development strategy embedding risk protection into the nation’s food systems, climate adaptation plans, and inclusive economic agenda.