Insurers of agricultural commodities say the percentage of smallholders who have access to agriculture insurance in Nigeria was less than five per cent.They also stated that these farmers produce over 98 percent of food consumed across the country, stressing that the latest mandate of most insurance companies was to now insure agro-commodities to avert food scarcity.
The insurance firms and their regulator disclosed this at a workshop for insurers who underwrite agriculture insurance in Nigeria, organised in Abuja by Pula Advisers Nigeria Limited. Some of the insurance firms that participated at the workshop include Leadway, Veritas Kapital, IGI, AXA, Sterling, JAIZ, Royal Exchange, NEM, AIICO, NAICOM, among others.
Speaking to journalists on the side-lines of the workshop, the Head, Agric Insurance, AIICO Insurance Plc, Leonard Okereafor, said poor access to insurance by smallholders was a threat to Nigeria’s food security.
“It is important to note that about 98 percent of the food we eat is produced by smallholders in the crop value chain,” he said.
When asked the percentage of smallholders that access agric insurance in Nigeria, Okereafor replied, “They are less than five per cent.” The Head, Agric and Micro-Insurance Division, Leadway Assurance Company, Fatono Ayoola, said the less than five per cent of smallholders who have access to agriculture insurance had been a challenge to food production.
“So we are here today basically to see how we can use insurance to ensure the food security of the nation, help in agricultural production and equally secure the investments in agriculture,” he stated.