Nigeria’s efforts to stabilise food supply and boost agricultural productivity are beginning to show results, the Federal Government has said, citing improvements across key segments of the sector.
Minister of Agriculture and Food Security, Abubakar Kyari, disclosed that the Nigerian Agricultural Insurance Corporation (NAIC) has provided about N700 billion in risk cover for 199,275 farmers over the past two years.
According to him, the scheme generated N2.43 billion in premium income and paid N200 million in claims to farmers who suffered agricultural losses during the period.
Kyari made the disclosure during the 2026 Ministerial Stakeholders’ Engagement Retreat on Agricultural Transformation held in Abuja over the weekend.
He explained that the insurance coverage forms part of broader federal reforms designed to strengthen farmers’ resilience and safeguard investments against climate and production risks.
The minister also noted that government interventions aimed at tackling food inflation are beginning to produce results, with prices of several staple food commodities declining across the country.
He said the current trend contrasts sharply with previous years when soaring food prices placed heavy pressure on households nationwide.
Kyari added that renewed confidence in the agricultural sector has attracted fresh investments from both local and international agribusiness operators, injecting millions of dollars into farming and agro-processing ventures.
He said the administration is prioritising the development of major agricultural value chains, including rice, maize, wheat, millet, sorghum, yam, cocoa, kenaf, cowpea, cassava, soybeans, cotton, onion, tomato and oil palm, as part of efforts to strengthen Nigeria’s position in the global agricultural market.
Between 2024 and 2025, the government distributed improved seeds, agrochemicals, pest and disease control packages, safety kits, and conducted capacity-building programmes to boost farm productivity.
According to the minister, these interventions are helping farmers transition from subsistence farming to commercially viable agribusiness operations.
As part of its support programmes, the Federal Government also distributed over 1.9 million bags of fertiliser to nearly one million farmers, while promoting sustainable soil management through the use of organic fertilisers.
Kyari further highlighted infrastructure projects aimed at strengthening rural economies. These include the construction of modern markets, 10 large-scale integrated processing plants across the six geopolitical zones, and the establishment of seven composite flour compact milling factories in several states.
Additionally, two agribusiness incubation centres were established at the Federal University Lokoja and Michael Okpara University of Agriculture, Umudike to support innovation, training and enterprise development in agriculture.
The minister also said rural development initiatives carried out between 2024 and 2025 include the construction of about 170 kilometres of asphalt roads and 57 kilometres of earth and surface roads to improve access to markets.
Other projects include the installation of 296 motorised and solar-powered boreholes with water treatment plants, as well as 3,596 solar street lights to enhance security and mobility in rural communities.
In addition, 69 rural housing and market facilities were built to stimulate economic activity and improve living conditions in farming areas.
Kyari said the Federal Government has also strengthened key agricultural institutions such as the Nigerian Agricultural Quarantine Service, Bank of Agriculture and the National Agricultural Development Fund.
He revealed that the quarantine service recently secured export certification for 30 agro-commodities, opening new international markets for Nigerian farmers and agribusinesses.
To further support agricultural financing, the government approved a N250 billion facility for the Bank of Agriculture to provide smallholder farmers with loans at single-digit interest rates, aimed at improving mechanisation and increasing food production.
Meanwhile, stakeholders at the retreat called on the Federal Government to increase funding for the agricultural sector, stressing that greater investment could generate jobs, reduce poverty and help address insecurity across the country.
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