AIICO Insurance Plc has emphasized the importance of collaboration among stakeholders to advance Nigeria’s agricultural sector. Speaking at AIICO’s annual training session for the Nigerian Association of Insurance and Pension Editors (NAIPE), Mr. Leonard Okereafor, the Agric & Emerging Risk Manager, highlighted the crucial role of insurance in ensuring the sector’s sustainability. He explained that insurance provides farmers with income stability, easier access to loans, and effective risk management, making it essential for achieving food security and improving agricultural productivity.
Okereafor further explained the distinctions between agriculture and agribusiness, noting that while agriculture focuses on farming, agribusiness encompasses the entire value chain, from input supply to marketing. He emphasized that agribusiness prioritizes profitability and market competitiveness, whereas agriculture often focuses on small-scale and subsistence farming. AIICO’s agricultural insurance offerings, including Indemnity and Index-based insurance, aim to support both farmers and agribusiness investors, enhancing their resilience and growth potential.
However, Okereafor identified several constraints to agribusiness development in Nigeria, such as limited access to modern technology, weak market links, and insufficient financial support. Addressing these issues, he argued, would require a skilled workforce and improved strategic partnerships to strengthen the sector’s infrastructure and capacity.
