Lack Of Insurance For Small-holder Farmers Major Set Back For Food Security-Insurers

Insurance companies have decried the over 95 percent uninsured small holder farmers in Nigeria, stating that it poses a major setback to national food security.

Different surveys have shown that poor access to market, poor access to finance, and inadequate knowledge of improved farming practices also challenge the activities of the smallholder farmers who produces over 90 percent of the total national agricultural outputs.

Recall the recent report of the flood incidence in Kebbi State which destroyed over 500,000 hectares of farmlands, and left farmers at a loss of over N5bn, among others.

The Head, Agric and Micro-Insurance Division, Leadway Assurance Company, Fatono Ayoola, said that the over 95 percent of smallholders who lack access to agriculture insurance poses a huge challenge to food production in Nigeria.

Speaking during the agricultural insurers workshop in Abuja, Ayoola said that as part of efforts to avert food shortage, the insurance companies have been mandated to insure agro-commodities.

He added that poor access to insurance by smallholder farmers was a threat to Nigeria’s food security.

The Director, Insurance Operation, Pula, Sarfraz Shah, in his remark said the workshop was part of measures to revitalise agriculture insurance in Nigeria by collaborating with existing insurance companies and gaining active participation of smallholders.

“Insurance companies in Nigeria are used to the old ways of doing agriculture insurance. Pula has been designing and implementing innovative products around the world since 2015.

“We are not just here to help insurance firms to design these products, but we want to develop their capacities and the local market so as to create employment opportunities,” he said.