Farm
FG integrates agric insurance into National Growth Scheme to combat harvest losses
The Federal Government is integrating Agricultural Insurance Scheme into the National Agricultural Growth Scheme and Agro-Pocket Program (NAGS-AP) in order to mitigate the impacts of climate change on the sector.
The aim is also to enhance the sustainability of Nigeria’s food systems and ensure food security across the country.
This was disclosed by Senator Abdullahi Sabi Aliyu, Minister of State for Agriculture and Food Security, during the Agricultural Insurance Train-the-Trainer Workshop in Orozo, Abuja.
According to him, the inclusion of the Agricultural Insurance Scheme within the NAGS-AP is crucial to protecting the investments made by both the government and the African Development Bank (AfDB), the program’s financing partner.
The minister, who highlighted the success of the 2023 dry season wheat cultivation, which benefited from favourable weather conditions, harped on the need to have a robust climate risk mitigation strategy.
He restated the importance of addressing risks like floods, droughts, pests, and diseases that could lead to crop failures or harvest losses.
Senator Aliyu stressed on the devastating impact of the 2023 ginger blight disease in Kaduna, which led to over 90% of crop losses for ginger farmers.
He said only those who had taken insurance received compensation, allowing them to return to farming with minimal financial strain.
The minister also drew attention to the 2024 Annual Flood Outlook report, which identified 397 out of 774 Local Government Areas (LGAs) in Nigeria as being at risk of flooding—representing over 51% of the nation’s farming areas.
He emphasized that climate-smart agriculture is essential for establishing a resilient food security system and that the government’s Renewed Hope Agenda is committed to this approach.
To advance the implementation of agricultural insurance, he said the Ministry has established a joint working committee, including representatives from the NAGS secretariat, the Nigerian Agricultural Insurance Corporation (NAIC), and PULA Advisors.
”This committee is tasked with creating a practical framework for the National Agricultural Insurance scheme under the NAGS program,” he stated,
During the workshop, Mr. Isiaku Buba, National Project Coordinator for NAGS-AP, highlighted the program’s broadening scope to include the interests of farmers and stakeholders throughout the agricultural value chain.
He noted that the scheme’s insurance component, designed by industry experts from NAIC and PULA Advisors, is intended to provide comprehensive coverage to support Nigeria’s agricultural output and enhance food security.
On her part, Mrs Folashade Joseph, Managing Director of NAIC, expressed the corporation’s readiness to partner with stakeholders in the agricultural sector, offering insurance and risk management expertise to reduce risks and improve agricultural productivity.
The workshop was attended by key stakeholders, including representatives from the All Farmers Association, USAID, REX Insurance, and NAIDA, all of whom are committed to the success of the Agricultural Insurance component of the NAGS-AP program.