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NiMet, REX Insurance to introduce weather index insurance for farmers

The Nigerian Meteorological Agency (NiMet) has signed a memorandum of understanding with REX Insurance Limited to launch a weather-index insurance designed to safeguard Nigerian farmers against losses caused by climate-related events.

The initiative aims to assist farmers in managing the risks associated with unpredictable weather, such as droughts and floods, which have increasingly jeopardized agricultural productivity nationwide.

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During the signing, NiMet’s Director-General, Prof. Charles Anosike, emphasized the agency’s extensive history of weather monitoring in Nigeria, having conducted weather observations for over a century.

He pointed out that climate change is exerting considerable pressure on the agricultural sector, impacting crops, livestock, soil, water resources, and rural livelihoods.

Prof. Anosike explained that the weather index agricultural insurance scheme will utilize measurable weather data to trigger insurance payouts when weather conditions surpass established thresholds.

He also mentioned that the initiative will incorporate crop calendar forecasting, which leverages climate data to identify optimal planting and harvesting times.

The system will provide farmers with timely weather and climate information, enhancing their decision-making and increasing crop yields.

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Managing Director of REX Insurance, Ebelechukwu Nwachukwu, stated that the company, previously known as Royal Exchange Insurance has been leveraging technology to broaden its agricultural insurance offerings.

Founded in 1918 as Nigeria’s first insurance company, REX Insurance is dedicated to creating innovative solutions that benefit smallholder farmers.

Nwachukwu highlighted that the partnership with NiMet will make index-based insurance more accessible to farmers, enabling them to plan better and manage climate-related risks.

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