According to the Nigerian Agricultural Insurance Corporation (NAIC), the current impact of climate change has made agricultural insurance mandatory for all farmers in the country.
Mr Andrew Uzomah, Branch Manager of NAIC in Enugu State, stated this on Thursday in Enugu during the International Fund for Agricultural Development (IFAD) three-day Capacity Building Training Programme for Insurance Suppliers and Other Value Chain Actors from Anambra, Ebonyi, Enugu, and Ogun States.
“Capacity Building/Technical Assistance Support to IFAD Value Chain Development Programme (VCDP) Financial Suppliers and Other Value Chain Actors on Agriculture Insurance Processes for Smallholder Farmers and Stakeholders” is the theme of the three-day capacity building.
Uzomah stated that insurance would help farmers reduce losses caused by weather unpredictability as a direct result of climate change.
According to him, the impact of climate change is more visible in the agricultural sector, particularly in farmlands and crop yield, which is why farmers needed somewhere to fall back on or financial indemnity.
“It is dangerous for any farmer to consider planting and other agricultural value chain production without first obtaining an insurance policy, if for no other reason than to protect such farmer from the effects of climate change,” he said.
The branch manager attributed some farmers’ reluctance to pursue agricultural insurance to ignorance and a negative attitude toward insurance in general.
“With today’s training, farmers are enlightened to see the need and benefit of purchasing an insurance policy, whether it covers the entire agricultural activity or just a portion of it.”
“You see, even without any personal experience, some people had already formed the negative stereotype that insurance companies cannot be trusted with claims.” However, this is not the case.
“We have reputable insurance companies that stand by their words and pay their claims as expected without instilling any bad faith in their clients or farmers,” he said.
According to the News Agency of Nigeria (NAN), a total of 60 participants from the four states (15 each) are currently participating in the capacity building programme in Enugu.