Hot SourceEbere Nwoji
The federal government has brought over 1.47 million smallholder farmers under insurance coverage using its Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).
This was disclosed by the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin.
He stated this in his key note address at the 2025 Stakeholders retreat of the House
Committee on Insurance and Actuarial Matters held in Maidugri, Borno State, recently.
NIRSAL is a Nigerian Non-Bank Financial Institution (NBFI) wholly owned by the Central Bank of Nigeria (CBN) and established to reduce the financial risks associated with lending to the agricultural sector in Nigeria. NIRSAL provides mechanisms like risk-sharing, insurance, technical assistance, incentives, and rating to encourage and facilitate investments in the Nigerian agribusiness value chain.
Addressing participants at the retreat, Omosehin said in bringing the 1.47 farmers under insurance coverage, government has achieved part of its target of covering
3.6 million farmers under insurance by 2026.
“In Q2 2025, 250,000 farmers were insured across eight states under federal initiatives. Statistics has it that in North Central Nigeria, insured rice farmers
recorded 11 per cent higher productivity than their uninsured peers—averaging 20
bags/hectare compared to 18 bags/hectare. Kaduna ginger farmers received pay outs under the NAGS-AP scheme after suffering over 90 per cent crop loss. Livestock and encroachment insurance in Sokoto, Bauchi, Adamawa, and Plateau States are reducing farmer-herder conflicts,” he stated.
On the commission’s efforts, Omosehin said under the Nigeria Insurance Industry
Act (NIIRA) 2025, NAICOM aimed to expand index-based and parametric insurance for crops and livestock. Promote bundled insurance products with inputs and credits, create a platform of collaboration for operators to partner with tech firms and agribusinesses to scale digital insurance delivery and work with state governments to embed insurance into agricultural extension services .
He said the theme of the retreat, ‘Navigating the New Era of Insurance Regulation:
Understanding NIIRA 2025’, reflected collective commitment to building a modern, inclusive, and resilient insurance ecosystem.
According to him, NIIRA 2025 consolidates decades of fragmented legislation into a coherent framework that empowered regulators, protects consumers, and fosters innovation.
He said the retreat offered a unique opportunity to deepen understanding of NIIRA
2025’s provisions and implications strengthen collaboration between legislators, regulators, and industry players, Explore strategic partnerships with state governments in providing appropriate insurance cover for government asset, agriculture, and infrastructure.
“NIIRA 2025 is not just about regulation; it is about reimagining the role of insurance in our economy. The new legislation sets out to modernise our frameworks in line with international standards. Safeguards consumers via stronger disclosure, claim handling, and a consumer protection Fund,” he stated.
