The Managing Director of Nigerian Agricultural Insurance Corporation (NAIC), Mrs Folashade Joseph, had at a briefing in Abuja, disclosed that the the FG was subsidizing farmers’ insurance by 50%
According to Mrs. Folashade, “Government has subsided insurance for farmers by 50 per cent”, For instance, for crops, if you are to pay a premium of N4, NAIC will charge farmers N2.
That is 50% of subsidy for farmers across the agriculture value chain. Hence, an advantage for farmers to take and make sure that they insure their farms and remain in business in case of natural disasters.
She said NAIC exists so as to help farmers de-risk the natural disasters across the value chain and insurance help sustain farmers across the agriculture value chain in event of natural disasters such as flood, diseases and erosion.
She was dissapointed that a lot of farmers refused to take up agriculture insurance. She urged farmers to insure their farms against natural disasters such as flood, diseases and erosion.
Agriculture insurance is what a lot of farmers across the value chain do not do. They see it as an additional cost but it is not. The NAIC Chief recounted how some farmers incurred losses after their tomato farms were attacked by tomato ebola and urged farmers not to take agricultural insurance with levity.
She added that the corporation will soon embark on sensitization of famers through the organization of forums that will be aimed at educating farmers on the importance of insurance.