Federal Gov’t Records N700bn Risk Cover For Farmers In 2 Years

The federal government said 199,275 Nigerian farmers have benefited from agricultural risk protection worth about N700 billion over the past two years, in a move aimed at strengthening resilience in the food production system and expanding financial protection across the sector.

Minister of Agriculture and Food Security, Senator Abubakar Kyari, disclosed this in Abuja, saying the risk cover was provided through the Nigerian Agricultural Insurance Corporation (NAIC), which insured farmers across the country within the period under review.

Kyari said the initiative forms part of the government’s effort to deepen agricultural financing, de-risk farming activities, and encourage investment in the sector, as Nigeria seeks to boost domestic food production and reduce dependence on imports.

According to the minister, the insurance support has improved farmers’ capacity to manage production risks arising from climate shocks, pests, diseases and other uncertainties that often threaten agricultural investments.

He explained that strengthening agricultural insurance and financing institutions remains a central pillar of the government’s food security agenda, alongside initiatives designed to expand input distribution, mechanisation and value chain development.

The minister noted that NAIC’s intervention has not only protected farmers but also helped stimulate activity in the agricultural insurance sector, generating N2.43 billion in premium income and settling N200 million in claims for affected farmers.

Kyari said the development complements other government programmes aimed at increasing productivity, including the distribution of over 1.9 million bags of fertiliser to farmers, the introduction of improved crop varieties, expansion of mechanisation services and investments in agro-processing infrastructure.

He added that the administration is also leveraging partnerships with development partners and foreign governments to enhance fertiliser production, technology transfer and regulatory compliance in the sector.

These measures, according to him, are expected to strengthen agricultural value chains, attract private-sector investment, and position Nigeria as a major player in global agricultural markets.

The minister further noted that government support for agricultural insurance forms part of a wider strategy to create a more secure operating environment for farmers and agribusinesses, particularly smallholders who remain the backbone of the country’s food production.

He said improved access to finance, insurance coverage and modern farming inputs would help farmers scale up operations and transition from subsistence agriculture to commercially viable agribusinesses.

He said, “The federal government has strengthened agricultural insurance and finance facilities, leveraging institutions like the Nigerian Agricultural Insurance Corporation, the Bank of Agriculture and the National Agricultural Development Fund to support farmers and agribusinesses across the country.’’

In the last two years, the Nigerian Agricultural Insurance Corporation has supported 199,275 farmers with N700 billion risk cover, generating N2.43 billion premium income and paying N200 million in claims to farmers affected by production risks.

This intervention is helping to boost farmers’ resilience, protect agricultural investments and ensure that farmers are better equipped to withstand shocks while sustaining productivity and contributing to national food security.”