The Nigerian Meteorological Agency (NiMet) has partnered with Rex Insurance Limited to introduce weather-based insurance solutions designed to shield Nigerian farmers from climate-related losses.
The agreement, sealed through a Memorandum of Understanding (MoU), aims to help farmers better manage risks associated with unpredictable weather, such as droughts and floods, ultimately promoting safer and more sustainable agricultural practices nationwide.
Speaking at the signing ceremony, NiMet’s Director General and Chief Executive Officer, Charles Anosike, noted that the agency has been engaged in weather monitoring in Nigeria for over a century.
He stressed that climate change is increasingly exposing the agricultural sector to risks, affecting crops, livestock, soil health, water resources, and rural livelihoods.
Anosike further explained that the partnership will introduce a weather index-based agricultural insurance scheme, where payouts are determined using verifiable weather data. He added that compensation will be triggered once specific thresholds such as extreme rainfall or extended dry spells, are reached.
He added that the initiative would also incorporate crop calendar forecasting, a system that uses climate data to determine the most favourable periods for planting and harvesting.
The NiMet boss noted that access to reliable weather and climate information would enable farmers to make better agricultural decisions, improve productivity and reduce climate-related risks.
Also speaking at the event, the Managing Director and Chief Executive Officer of Rex Insurance, Ebelechukwu Nwachukwu, outlined the company’s history and transformation.
She explained that the company, formerly known as Royal Exchange Insurance and established in 1918 as Nigeria’s first insurance company, has embraced technology to strengthen its services, particularly within the agricultural sector.
Mrs. Nwachukwu said the company’s new direction focuses on helping smallholder farmers plan more effectively and manage risks linked to changing weather patterns.
She added that the partnership with NiMet would make index-based insurance accessible to smallholder farmers in Nigeria.
In his closing remarks, Professor Anosike stressed that insurance remains a critical tool for managing climate risks, especially as extreme weather events become more frequent and severe.
He reaffirmed NiMet’s commitment to the partnership, noting that accurate climate information and effective risk management would help strengthen the resilience of Nigerian farmers.
Source - https://von.gov.ng/
