NiMet, REX Insurance Partner to Roll Out Weather Index Insurance for Nigerian Farmers

By Iyojo Ameh

The Nigerian Meteorological Agency (NiMet) has signed a Memorandum of Understanding (MoU) with REX Insurance Limited to introduce weather index insurance aimed at protecting Nigerian farmers from losses caused by extreme weather conditions.

The initiative is designed to provide farmers with insurance coverage triggered by measurable weather conditions such as droughts, excessive rainfall, and flooding.

Speaking at the signing ceremony, the Director General and Chief Executive Officer of NiMet, Charles Anosike, traced the agency’s long history of weather monitoring in Nigeria, noting that the institution has maintained over a century of weather observation records.

He explained that agriculture remains one of the sectors most vulnerable to climate change, which continues to affect crops, livestock, soil quality, water resources, and rural livelihoods across the country.

According to Anosike, the weather index agricultural insurance scheme relies on scientific weather data to determine when farmers receive insurance payouts. Payments are triggered when certain weather indicators, such as rainfall levels, exceed or fall below specific thresholds.

He added that the partnership will also promote the use of crop calendar forecasting, a climate based tool that helps farmers determine the most appropriate periods for planting and harvesting based on weather patterns. The approach, he said, will provide farmers with timely climate information and support better agricultural planning.

Also speaking, the Managing Director and Chief Executive Officer of REX Insurance, Ebelechukwu Nwachukwu, highlighted the company’s history and transformation in recent years.

She noted that the firm, formerly known as Royal Exchange Insurance and established in 1918 as Nigeria’s first insurance company, has embraced technology to improve its products and services, particularly in the agricultural sector.

Nwachukwu said the partnership with NiMet represents a significant step toward delivering practical insurance solutions to smallholder farmers, enabling them to plan better and reduce the risks associated with unpredictable weather.

She expressed confidence that index based insurance products targeted at smallholder farmers will soon become operational in Nigeria through the collaboration.

In his closing remarks, Anosike stressed that insurance is an important tool for addressing climate related risks, especially as extreme weather events become more frequent and severe.

He reaffirmed NiMet’s commitment to working closely with REX Insurance to ensure that farmers across Nigeria benefit from accurate climate information and reliable risk protection mechanisms.