Boosting Farmers’ Livelihood: Minister Pushes for NAIC Recapitalization

Dayo Thomas

The Minister of Agriculture and Rural Development, Dr. Muhammad Abubakar, is advocating for a significant boost to the Nigerian Agricultural Insurance Corporation (NAIC) through recapitalization. The proposed increase in NAIC’s capital base to N10 billion aims to enhance farmers’ livelihood and food sovereignty, ultimately driving agricultural growth and development.

Recapitalizing NAIC is expected to have a profound impact on Nigerian farmers. With increased funding, NAIC can provide more affordable insurance options, protecting farmers against climate-related shocks, pest outbreaks, and market fluctuations. This, in turn, will give farmers the confidence to invest in their farms, leading to improved productivity and higher yields. Insured farmers have shown an 11% increase in productivity, with rice farmers averaging 20 bags/hectare compared to 18 bags/hectare for their uninsured counterparts. For instance, in the rice-producing areas of Ebonyi and Anambra states, insured farmers have been able to expand their farms, creating jobs and stimulating local economies.

By de-risking agriculture, NAIC’s recapitalization can play a pivotal role in stabilizing food supplies and reducing poverty. With more farmers accessing affordable insurance, the agricultural sector can become more resilient, ensuring a steady supply of food for Nigerians. NAIC has already demonstrated its potential, generating N8.6 billion in insurance premiums and providing cover to agricultural projects worth N1.1 trillion. This progress is a testament to the potential of agricultural insurance in transforming Nigeria’s agricultural landscape.