Statute established Nigeria Agricultural Insurance Corporation is now back to its core mandate, to administer the Nigerian Agricultural Insurance Scheme, secure crop insurance against natural disasters like floods, droughts, and pests.
Though NAIC was established in 1988 five years ahead of enabling law which came in 1993 as Act 37 of 1993, now codified as (Cap N89 Laws of the Federation of Nigeria) and wholly owned by Federal Government to subsidise and secure agricultural risks, particularly for smallholder farmers.
Aware of the strategic role it plays in food security, the National Insurance Commission which concluded recapitalisation of 50 insurance entities by July 31, 2026, withdrew the general insurance licence given to the Corporation on the grounds of prior minimum capital requirement for that class of risks, and now the state agric insurer is out of its purview because it no longer has general risks portfolio to underwrite.
The Commissioner for Insurance, Olusegun Omosehin, clarifying the position of NAIC at the Media Interactive Session in Lagos yesterday, Friday, September 11, 2026, said the state of affairs now is that NAIC would continue underwrite subsidised agricultural schemes and what they could no longer do is to cover general risks of farmers because the licence to do that has been withdrawn
