To fortify Nigeria’s food systems and shield farmers from mounting risks in a volatile, uncertain, complex and ambiguous environment, the National Insurance Commission (NAICOM) and the Federal Ministry of Agriculture have forged a strategic alliance aimed at expanding agricultural insurance coverage, de-risking the sector to accelerate sustainable food security nationwide.
The alliance took place as NAICOM and the Ministry of Agriculture held a high-level meeting at regulator’s office in Abuja, to align policies, deepen collaboration and accelerate reforms that will strengthen agricultural insurance, protect smallholder farmers, and support the current Administration’s food security agenda.
The key areas of discourse were: The passage of NIIRA 2025 which presents ample opportunity to modernize the insurance sector and align institutional frameworks to better support smallholders and national food security objectives.
Policy alignment commitment: NAICOM and the Ministry committed to close policy alignment to ensure Nigerian Agricultural Insurance Corporation (NAIC) and Nigeria’s sole specialized agricultural insurance institution is positioned to deliver meaningful protection across the agricultural value chain.
Others outcome were the integration of NIIRA 2025 in their corporate strategies.
The meeting agreed that NAIC must be elevated and restructured to operate effectively within the new insurance architecture established by the Nigerian Insurance Industry Reform Act (NIIRA) 2025. And, to enhance its operational impact.
Data and capacity priorities: The Ministry’s newly created Federal department of Agricultural Data Analytics will coordinate efforts to gather, validate, and govern agricultural data critical for index insurance and other parametric solutions.
Need for a joint technical working arrangements: Both parties agreed on a technical working relationship and a special joint platform/meeting between them will be organized for effective implementation of reforms. But more importantly, they emphasised the need for capacity building to strengthen technical expertise across the sector.
These actions, they confirmed, aim to expand financial protection for smallholder farmers, reduce vulnerability to climate and disaster risk, attract investment into agriculture by reducing risk exposure and contribute to the administration’s objective of a resilient, inclusive agricultural sector and broader economic growth. The meeting highlighted the central role of agricultural insurance in protecting farmers and building resilience against natural disasters and climate shocks, an indispensable elements of food security. With commercial insurers covering only a limited share of agricultural risk, NAIC as the specialized agricultural insurance institution remains vital, they maintained.
BPP pledges support
In another development, the Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, has assured the Commissioner for Insurance and Mr. Olusegun Ayo Omosehin, that he would support his administration to achieve its objectives.
Adedokun, who gave this assurance in his office in Abuja when Mr. Omosehin paid a working visit, urged stakeholders to continue strengthening inter-agency cooperation to enhance accountability, promote efficiency, and uphold public trust in the procurement and insurance sectors.
The visit aimed at deepening collaboration between NAICOM and BPP, aligning with the Commission’s strategic objective to promote inter-agency partnership. He reiterated his commitment to fostering synergy and collaboration between his agency and NAICOM to boost accountability, trust in procurement, and insurance sector.
In his remark, NAICOM’s Chief reiterated the Commission’s commitment to transparency and fairness in its dealings with sister agencies. He assured his host that NAICOM, under his leadership would ensure strict adherence to claims, solvency requirements, and regulatory standards.
He expressed appreciation to the Director-General of BPP for his continuous support to NAICOM. He affirmed that all insurance matters would be handled strictly in accordance with the laws of the Federal Republic of Nigeria.
He discussed the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 with Adedokun.
Source - https://thesun.ng
