By Gabriel Ameh
The Nigerian Meteorological Agency (NiMet) has signed a Memorandum of Understanding with REX Insurance Limited to introduce weather index insurance aimed at helping Nigerian farmers mitigate losses caused by unpredictable climate conditions.
The partnership seeks to provide farmers with insurance protection against extreme weather events such as droughts and floods, a growing concern for Nigeria’s agricultural sector as climate variability continues to affect crop production and rural livelihoods.
Speaking during the signing ceremony, the Director-General and Chief Executive Officer of NiMet, Charles Anosike, noted that the agency has more than a century of experience in weather observation in Nigeria.
He explained that the initiative will combine climate data with insurance tools to provide farmers with timely information that can support improved decision-making in agriculture.
According to Anosike, the weather index agricultural insurance scheme relies on measurable weather data to trigger payouts when weather conditions exceed specific thresholds.
He added that the approach would work alongside crop calendar forecasting, which predicts optimal planting and harvesting periods using climate data, thereby helping farmers plan more effectively and improve productivity.
Also speaking at the event, the Managing Director and Chief Executive Officer of REX Insurance, Ebelechukwu Nwachukwu, highlighted the company’s long history in Nigeria’s insurance industry.
She explained that the firm, formerly known as Royal Exchange Insurance and established in 1918, has embraced technology-driven solutions to strengthen its services, particularly in agricultural insurance.
Nwachukwu said the collaboration with NiMet is expected to make index-based insurance accessible to smallholder farmers across the country, enabling them to better manage risks associated with climate change.
In his closing remarks, Anosike emphasized that insurance plays a crucial role in climate risk management, noting that reliable weather and climate information is essential for safeguarding agricultural productivity.
He reaffirmed NiMet’s commitment to the partnership, expressing confidence that the initiative will contribute to building a more resilient agricultural sector in Nigeria.
