NIRSAL offers N6.5bn insurance cover to 37,399 farmers

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), has provided about N6.5 billion worth of insurance coverage for farmers across the country. 

The Managing Director/Chief Executive Officer of NIRSAL, Mr Aliyu Abdulhameed, who disclosed this at an Agribusiness Summit in Lagos said that, NIRSAL has developed and launched the Area Yield Index Insurance product which protected up to N6.5 billion revenues of 37,399 farmers, with over N121 million paid out as compensation.

According to Abdulhameed, the Area Yield Index Insurance covers the expected yield of smallholder farmers as it protects their revenues from losses due to pests, diseases, adverse weather conditions, and other disasters.

He stated that NIRSAL achieved the move of Nigerian agricultural insurance from indemnity-based to index-based insurance by involving and working together with local and international insurance operators.

He noted that the importance of insurance cover for farmers cannot be overemphasized as it would help the smallholder farmers have something to fall back on when their crops or livestock get damaged.

According to him, it also has great potential to provide value to low-income farmers and their communities, both by protecting them when shocks occur and by encouraging greater investment in crops.

The partnership between the Nigerian Insurers Association and NIRSAL was strengthened in 2017 planting (wet) season when five insurance companies participated in the consortium mainly under the NIRSAL facility, while more companies were expected to join in subsequent years.