In an effort to mitigate harvest losses due to climate change, the Federal Government has accelerated the integration of the Agricultural Insurance Scheme into the National Agricultural Growth Scheme and Agro-Pocket Program (NAGS-AP).
This initiative aims to enhance sustainability and strengthen food security across the nation.
The Minister of State for Agriculture and Food Security, Senator Dr. Aliyu Abdullahi made this announcement during the Agricultural Insurance Train-the-Trainer Workshop held at Debbie’s Upper Class Event and Recreation Centre, Orozo, Abuja. He highlighted the government’s commitment to safeguarding investments and interventions through the NAGS-AP programme, which is supported by the African Development Bank (AfDB). The integration of agricultural insurance is seen as a critical step in ensuring the resilience of local food systems.
Reflecting on the program’s beginnings during the 2023 dry season with wheat cultivation, the minister noted that favourable weather conditions had resulted in a bountiful harvest. However, he stressed the increasing need for climate risk mitigation solutions to address the growing challenges posed by climate change, including floods, droughts, pests and diseases, all of which could lead to crop failures and significant harvest losses.
Abdullahi emphasised that these climate risks are now central concerns for the government, financial institutions, and farmers alike. The consequences of adverse weather conditions could devastate investments and labour, leading to significant food price inflation, as is currently being experienced. He cited the 2023 wet farming season, during which ginger farmers in Kaduna suffered severe losses due to the outbreak of ginger blight disease, with over 90 per cent of their total harvest decimated.
The minister pointed out that only a small fraction of these farmers, who had taken insurance coverage, received compensation for their losses. These insured farmers were able to return to their farms with minimal financial strain, unlike their uninsured counterparts, who had to rely on their limited savings to continue farming. Abdullahi revealed that Nigerian ginger farmers incurred losses amounting to N12 billion due to the blight epidemic in 2023, highlighting the importance of agricultural insurance in protecting against such catastrophic losses.
Furthermore, the minister referred to the 2024 Annual Flood Outlook report, released by the Ministry of Water Resources and Sanitation, which identified 148 local government areas (LGAs) in 31 states as high flood-risk zones. An additional 249 LGAs across 36 states and the Federal Capital Territory (FCT) were classified as moderate flood-risk areas. In total, 397 LGAs, representing over 51 per cent of Nigeria’s farming areas, are at risk of flooding. Abdullahi stressed the urgency of addressing these risks through the ‘Renewed Hope’ agenda, which aims to implement climate-smart agriculture as a means to establish a resilient food security system in the face of climate change.
To achieve this, the ministry has established a joint working committee comprising representatives from the NAGS secretariat, the Nigerian Agricultural Insurance Corporation (NAIC), and Pula Advisors. This committee has been tasked with developing a practical framework for implementing a national Agricultural Insurance scheme within the NAGS program. One of the key deliverables approved by the Ministry is the organisation of training and sensitisation programmes on Agricultural Insurance, aimed at educating stakeholders on its benefits and features.
The minister expressed his gratitude to the Joint Working Committee for their efforts and looked forward to the outcomes of the workshop, which would guide the next steps in implementing the Agricultural Insurance component for the ongoing NAGS 2023 wet season and subsequent dry and wet season programmes.
In his opening remarks, the National Project Coordinator for NAGS-AP Isiaku Buba emphasised that the scheme is designed to accommodate the interests of farmers and other stakeholders along the agricultural production chain. He noted that the Agricultural Insurance component is being developed by experienced professionals from the insurance industry, with NAIC and Pula Advisors Limited playing a crucial role in informing stakeholders about the benefits and implementation strategies of the insurance programme.
In her goodwill message, Managing Director of NAIC Folashade Joseph pledged the corporation’s readiness to partner with stakeholders in the agricultural and other sectors. She highlighted NAIC’s commitment to providing sound insurance and risk management expertise to reduce the risks facing agricultural ventures and improve national agricultural output, thereby contributing to food security.
A statement by the ministry’s Director of Information Anthonia Eremah confirmed the attendance of key stakeholders at the workshop, including representatives from the All Farmers Association, NAIC, Pula Advisors, USAID, REX Insurance, NAIDA, among others.
