FG Moves to Reform Agricultural Insurance, Strengthen Food Security

FG Moves to Reform Agricultural Insurance, Strengthen Food Security

JOEL OLADELE, Abuja 

The Federal Government on Monday unveiled plans to implement sweeping reforms in agricultural insurance as part of efforts to boost food security and strengthen Nigeria’s economy.

The move was discussed during a meeting in Abuja between the Minister of State for Finance, Doris Uzoka-Anite, and the Minister of State for Agriculture, Aliyu Sabi Abdullahi.

Talks at the meeting centred on two key initiatives the reform and recapitalisation of the **Nigerian Agricultural Insurance Corporation (NAIC) and the Renewed Hope Cooperative Reform Programme.

Uzoka-Anite said agricultural insurance remains critical in protecting food production, especially for smallholder farmers who make up a large share of Nigeria’s food system.

She noted that strengthening NAIC in line with evolving regulations, including the Nigerian Insurance Industry Reform Act, is essential to improving resilience and ensuring long-term financial sustainability in the sector.

According to her, the Federal Government views agricultural risk mitigation as more than a sector-specific reform.

“At the Ministry of Finance, we view agricultural risk mitigation not merely as sectoral reform but as an economic stabilizer with significant GDP impact. We stand ready to support and look forward to reviewing the detailed proposal for coordinated fiscal and regulatory action,” she said.

The ministers agreed that recapitalising and repositioning NAIC would help de-risk investments in agriculture, encourage private sector participation and improve farmers’ access to insurance coverage.

Uzoka-Anite added that the reforms demonstrate Nigeria’s commitment to transforming agriculture into a resilient and market-driven sector capable of driving inclusive economic growth and enhancing national food security.

The planned changes are expected to strengthen cooperative structures, improve access to finance for farmers and support broader efforts to stabilise food supply across the country.