Agriculture is hugely important to Nigeria. It makes up about a quarter of the country’s economy, and almost half of the population are smallholder farmers. Most farm on less than 10 hectares of land.
It can be a tough way to make a living. Smallholder farmers in Nigeria regularly lose crops and livestock to floods and droughts. For instance, Nigeria lost over 1.7 million metric tonnes of grain to drought in 2021.
Extreme weather events can devastate farmer families for a long time because agriculture is their main source of income. But research shows that up to 82.7% of Nigeria’s farmers are not insured for this damage. Research has also pointed out some obstacles to traditional insurance for small farmers in African countries. Premiums may be too expensive, and claims difficult to make.
