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With only about five per cent of agricultural crops in Nigeria insured, operators see this as a threat to food security, OKECHUKWU NNODIM writes
Although many farmers agreed to the fact that it was vital to insure their crops, the concern of trust in insurance companies and the non-payment of claims by these firms had been sources of discouragement. Ayoola, who spoke in Abuja, observed that agriculture was a very risky venture in Nigeria, especially when in the production value chain.
“That is why insurance has become a very good tool in securing your investment when the unexpected happens. This is because weather events are purely beyond man’s control.” “In fact, it is the cheapest anywhere in the world, as is applicable to the Nigerian farmers. So I believe the cost element is actually affordable.”
“So if you are taking a look at the risks and uncertainties that the insurance company is insuring, vis-a-vis the price that the farmer is paying for the cost of insurance, it is certainly and very cheap.”The Head, Agric Insurance, AIICO Insurance Plc, Leonard Okereafor, stated that insurers had started collaborating with farmers based on the need to secure the country’s food production through insurance.
He noted that the collaboration between farmers and insurance firms was also geared towards addressing issues of mistrust which farmers had for insurance. Okereafor stated that funding was also a factor limiting the ability of farmers to insure their produce, adding that there poor access to loans had been a challenge as well.
“If we do that and we are able to build on it and other collaborators are equally involved in it, I think we can get there and food security will not be a far fetched expectation.Speaking on why many farmers were not insuring their commodities, the National President, Nigeria Cassava Growers Association, Segun Adewumi, said cassava farmers were not insuring their crops due to herdsmen menace on cassava.
“This makes cassava a target of herdsmen and whenever they invade your farm you cannot have any claim from the insurance companies.”
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