By| Goodluck E.Adubazi | Abuja
The Nigerian Meteorological Agency (NiMet) has signed a Memorandum of Understanding (MoU) with REX Insurance Limited to introduce weather index insurance aimed at protecting Nigerian farmers from climate-related losses.
The agreement, signed in Abuja, is expected to provide farmers with insurance coverage linked to weather conditions such as droughts and floods, helping to safeguard agricultural livelihoods and promote sustainable farming across the country.
Speaking during the ceremony, the Director General and Chief Executive Officer of NiMet, Charles Anosike, emphasized the growing need for innovative risk-management tools in agriculture as extreme weather events become more frequent.
According to him, insurance remains a critical instrument for managing climate risks, particularly when supported by reliable weather and climate data.
“Insurance is a valuable tool for managing climate risks,” he said, noting that effective risk management depends heavily on accurate and timely climate information.
Prof. Anosike also highlighted NiMet’s long history of weather monitoring, noting that the agency has conducted weather observation in Nigeria for more than a century. He warned that climate change continues to pose significant threats to agriculture, affecting crops, livestock, soil health, water resources and rural communities.
He explained that the planned weather index agricultural insurance scheme will rely on measurable weather data to determine when payouts should be triggered. Under the system, insurance compensation is automatically activated when weather conditions exceed predetermined thresholds.
The initiative will also integrate crop calendar forecasting, a climate-based tool designed to guide farmers on optimal planting and harvesting periods. Officials say this will help farmers make better decisions, improve productivity and reduce vulnerability to unpredictable weather.
Also speaking at the event, the Managing Director and Chief Executive Officer of REX Insurance, Ebele chukwu Nwachukwu, described the partnership as a major step toward strengthening agricultural resilience in Nigeria.
She explained that REX Insurance, formerly known as Royal Exchange Insurance, was established in 1918 as Nigeria’s first insurance company and has recently undergone significant technological transformation to modernize its services.
Mrs. Nwachukwu said the company’s innovation drive focuses particularly on supporting smallholder farmers by providing insurance solutions that help them plan better and manage risks associated with climate variability.
She added that through the partnership with NiMet, index-based insurance products tailored for smallholders farmers will soon become available in Nigeria.
Industry stakeholders say the collaboration between NiMet and REX Insurance could mark a significant milestone in strengthening climate resilience in the agricultural sector and improving food security nationwide.
PhotoCredit:@Nimet
Prof. Charles Anosike DG/CEO NiMet and Mrs Ebelechukwu Nwachukwu Managing Director and CEO Rex Insurance Ltd
