NiMet, REX Insurance Launch Weather Index Insurance to Shield Nigerian Farmers from Climate Risks

The Nigerian Meteorological Agency (NiMet) has entered into a strategic partnership with REX Insurance Limited to introduce weather index insurance aimed at protecting Nigerian farmers from losses caused by extreme weather events.

The agreement, formalised through the signing of a Memorandum of Understanding (MoU), is designed to provide farmers with insurance coverage triggered by measurable weather conditions such as droughts and floods.

The initiative seeks to reduce the vulnerability of farmers to climate related risks while promoting sustainable agricultural practices across the country.

Speaking during the signing ceremony, the Director General and Chief Executive Officer of NiMet, Charles Anosike, highlighted the agency’s longstanding role in weather monitoring, noting that NiMet has maintained more than a century of weather observation in Nigeria.

According to him, the agricultural sector remains one of the most exposed to the impacts of climate change, which continues to affect crop production, livestock, soil health, water availability and rural livelihoods.

Anosike explained that the proposed weather index agricultural insurance scheme will rely on scientifically measured weather data to determine when farmers receive payouts. Under the system, insurance compensation will be automatically triggered when weather indicators such as rainfall levels exceed or fall below predetermined thresholds.

He added that the initiative will also integrate crop calendar forecasting, a climate based tool that provides farmers with guidance on the most suitable periods for planting and harvesting. The tool is expected to enable farmers to make informed decisions while improving productivity and crop yields.

Also speaking at the event, the Managing Director and Chief Executive Officer of REX Insurance, Ebelechukwu Nwachukwu, outlined the company’s evolution and commitment to innovation in the insurance sector.

She explained that the company, formerly known as Royal Exchange Insurance, was established in 1918 as Nigeria’s first insurance firm and has recently undergone a transformation aimed at leveraging technology to expand its offerings, particularly in the agricultural sector.

Nwachukwu noted that the partnership with NiMet represents a major step towards providing smallholder farmers with practical risk protection tools.

She expressed optimism that index based insurance tailored for smallholder farmers will soon become widely available in Nigeria, enabling farmers to plan better and mitigate climate related uncertainties.

In his concluding remarks, Anosike emphasised that insurance remains a critical tool for managing the growing risks associated with climate change. He noted that effective risk management in agriculture depends largely on access to reliable climate information.

The NiMet chief reaffirmed the agency’s commitment to the collaboration with REX Insurance, stressing that the partnership will help strengthen the resilience of Nigerian farmers in the face of increasingly unpredictable weather patterns.