Climate based micro-insurance

On March 22-23, 2011 stakeholders representing the Federal Ministry of Agriculture, All Farmers Association of Nigeria, Nigerian Meteorological Agency, The World Bank, Central Bank of Nigeria, the insurance industry and civil society groups met in Abuja to deliberate on the challenges posed to Nigerian agriculture by frequent climatic disasters and the inadequacy of climatic risk transfer mechanism through insurance.

Stakeholders at the two day meeting acknowledged the important role ole agriculture plays in the economy in terms of employment, income generation, poverty reduction and raw materials production, the targets of vision 2020 and the MDGs, may not be achieved if action is not taken now to protect Nigerian farmers through an adequate insurance arrangement.

They identified, inadequate meteorological infrastructure, unsupportive policy and regulatory frameworks, lack of capacity building within insurance industry and poor public awareness among Nigerian farmers constitute major bottlenecks to providing climate based risk management services to farmers.