NiMet Partners REX Insurance to Launch Weather Index Insurance for Farmers

NiMet Partners REX Insurance to Launch Weather Index Insurance for Farmers

The Nigerian Meteorological Agency (NiMet) has signed a Memorandum of Understanding (MoU) with REX Insurance Limited to offer weather-based insurance solutions aimed at protecting Nigerian farmers from climate-related losses.

The initiative is designed to safeguard livelihoods against unpredictable weather events, such as droughts and floods, making agriculture both safer and more sustainable across the country.

Speaking at the signing ceremony, NiMet Director General and CEO, Prof. Charles Anosike, highlighted the agency’s century-long history in weather observation and the increasing vulnerability of agriculture to climate change. He noted that extreme weather can negatively affect crops, livestock, soil, water resources, and rural communities.

Prof. Anosike explained that the new weather index agricultural insurance scheme will use measurable weather data to trigger insurance payouts when certain conditions are met.

The scheme will also incorporate crop calendar forecasting, which predicts optimal planting and harvesting periods based on climate data, enabling farmers to plan more effectively and improve crop yields.

On her part, the Managing Director and CEO of REX Insurance, Mrs Ebelechukwu Nwachukwu, provided an overview of the company’s history and transformation.

Formerly known as Royal Exchange Insurance, the firm was established in 1918 as Nigeria’s first insurance company. Mrs Nwachukwu emphasized that REX Insurance has embraced technology to enhance agricultural insurance products, focusing on empowering smallholder farmers with better planning tools.

“Through this partnership, index-based insurance for smallholder farmers will soon become a reality in Nigeria,” she said.

Prof. Anosike concluded by stressing the importance of insurance as a risk management tool in the face of increasingly frequent and severe weather events. He reiterated NiMet’s commitment to providing accurate climate information and supporting the partnership with REX Insurance to benefit farmers nationwide.

DG/CEO NiMet, Prof. Charles Anosike and the Managing Director and CEO Rex Insurance Ltd., Mrs Ebelechukwu Nwachukw