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Climate change puts farmers in debt

Climate change puts farmers in debt
Photo by Tuân Nguyễn Minh- Ask Nigeria

Lack of insurance coverage makes farmers unable to rise from huge flood losses.

Impacts of climate change in Nigeria have plunged many Nigerians farmers into debt and has threatened food security in the country as many farmers have failed to embrace mitigation measures like adequate insurance coverage. Julde Atiku, a 74-year-old rice farmer in Ardo Kola LGA of Taraba State, lost a N4 million investment of rice farming gathered through a loan as a result of flood from the last rainy season. Adamu Inuwa and other farmers from a neighboring community suffered similar fate and pleaded with the government to intervene.

The National President of the All Farmers Association of Nigeria (AFAN), Kabiru Ibrahim, asserted that the farmers would not have suffered such great loss and having to wait for the supposed intervention of the government if they had the required insurance coverage. The 2022 flood destroyed over 500,000 hectares owned by many smallholder and commercial farmers and is described as the worst in the country within the last decade. According to the National Emergency Management Agency (NEMA), about 600 people were killed by the flooding while over 1 million people were displaced.

Agriculture insurance cover is low in the country.

Suleiman Adamu, the Minister of Water Resources, said that controlling the effect of flooding in Nigeria would take three decades of consistent investment. This predicts more natural disasters ahead and the need for insurance coverage as mitigation measures. Unfortunately, agricultural insurance coverage is very low in the country, given the fact that it has significant contribution to the Gross Domestic Product (GDP) of the country and the largest employment sector which ensures provision of jobs for about 36 percent of the 200 million population.

Aluu, a bird farmer, who was at the verge of gaining over N30 million from his poultry lost all his birds as a result of the flood-related crises that struck in Bayelsa State. During the flood, there was difficulty in accessibility to quality feeds and medications to care for his 10,000 birds. The birds also suffered water-borne infections which led to the death of 9,400 birds. In total, he lost N75 million as he only insured his workers and birds against theft and not natural disasters.

There should be creation of awareness for insurance products.

The Director General of the Nigerian Agribusiness Group (NABG), Dr. Manzo Maigari, stated that insurance is a vital step that should be taken by farmers for mitigation of effects of climate change. He asserted that agriculture should be regarded as business and owners should ensure involvement of insurance companies to begin their businesses. Most farmers, however, usually do not want to buy insurance products due to low awareness, mere wishing against disaster or lack of trust which makes them believe they may not get timely compensation when the need arises.

According to Executive Director of Technical Operations of Coronation Life Insurance Ltd, Adebowale Adesona, affirmed that climate change crises does not only affect the customers, it affects the insurance companies also. He continued by saying that climate change is getting complexified and many insurance companies in Nigeria and around the world avoid developing products concerning it for lack of understanding of the pattern. Development of the right products around climate change would organize stakeholders in the industry and climate modelers would model the impacts to be developed into products.

AFAN with NAIC suggests fleet insurance for farmers.

A former Head, Small and Medium Enterprises (SME), Allianz Nigeria Plc, Louis Alozie, at a webinar in November, 2022, titled “Importance of Insurance for SMEs” noted that there should be flexibility, seamlessness and more transparency of insurance policies. There should be sensitization of Nigerians for adoption insurance mechanisms. AFAN National President, Kabir Ibrahim, added that the association was deliberating with NAIC about having fleet insurance so that farmers can pay a token as premium for insurance of their farms.


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Admin
1
14 days ago

Climate change puts farmers in debtLack of insurance coverage makes farmers unable to rise from huge flood losses. – Express your point of view.

Last edited 14 days ago by AN-Toni
Abusi
Member
8
14 days ago

Climate change is a global problem. It is really affecting farmers so much. I hope the government van look for a way to lessen the burden of these farmers.

Member
9
14 days ago

Impact of climate change has plunged our farmers into debt and loss because the flood that flush through their farms destroyed lots of crops and other things and it’s so enormous that government intervention is needed and also they should help prevent future occurrence.

Member
8
14 days ago

The impacts of climate change on farmers plunged them into debts and losses. FG interventions would be acknowledged and make preventive measures for unforseen circumstances.

Member
8
14 days ago

The effects of climate change in Nigeria have forced a large number of the country’s farmers into debt and have put the nation’s ability to provide food for its population in jeopardy.

Member
8
14 days ago

If the farmers had the mandatory insurance coverage, they would not have been forced to wait for the purported intervention of the government and would not have been forced to incur such a significant loss.

Member
8
14 days ago

According to this, there will be more natural catastrophes in the future, and it will be necessary to have insurance coverage as a form of mitigation.

Member
8
14 days ago

We ought to be aware that it would take regular investment over the course of three decades in order to control the effects of floods in Nigeria.

Member
8
14 days ago

Due they lack a grasp of the trend, many insurance companies in Nigeria and around the world avoid designing policies that are related to climate change. This is because climate change is becoming more complex.

Member
8
14 days ago

However, most farmers typically do not intend to purchase insurance products owing to low understanding, mere wishing against tragedy, or lack of faith, which leads them to feel they may not get timely recompense in the event of a need.

Member
8
14 days ago

If the appropriate products were developed in relation to climate change, then stakeholders in the industry could be organized, and climate modelers could model the impacts that would need to be developed into products.

Member
8
14 days ago

Nigeria’s ability to feed its people has been threatened by the debt incurred by many farmers as a result of climate change.

Member
8
14 days ago

If the farmers had been covered by the required insurance, they wouldn’t have had to wait for the alleged government intervention, and they wouldn’t have lost as much money.

Member
8
14 days ago

The effects of climate change on farmers have pushed many of them deeper into debt and caused them to suffer financial losses. The initiatives of the FG would be acknowledged, and preventative steps would be taken in case of unforeseen events.

Member
8
13 days ago

Climate change really affect the farmer destroying and damage of their crop due to flood issue the government should try and work things out to help the farmer in this kind period

Member
8
13 days ago

Many insurance firms in Nigeria and elsewhere in the globe avoid drafting plans that address climate change because they don’t understand it. Reason being, the complexity of climate change is growing.

Member
9
13 days ago

Climate change puts farmers in debt. Changes is part life, and part the world. we have to always prepare for a day like this.

Member
8
13 days ago

Our culture in Nigeria has not fully accepted insurance on any of our things including lives and farming. I believe awareness should be created to enable the farmers and every single Nigerian know the important of insurance.

Member
8
13 days ago

Farmers should be encouraged to insure the cultivated farm and farm lands against unforeseen natural disasters or circumstances. In this way they are able to minimize losses. I also awareness should be created on the need to accept insurance for their farms.

Member
9
13 days ago

It is very unfortunate that in Nigeria we citizens don’t take insurance policy serious and it affecting us badly in so many ways which can be avoided through compensation to the affected people and this is the major reason why these farmer were plunge into debt after loosing their farm to disaster.

Member
8
13 days ago

This is quite an unfortunate incident. Although they wouldn’t have suffered this severity of loss if they had insurance. They should endeavor to tap into the benefits of insurance.

Member
8
13 days ago

Stakeholders in the sector might organize and climate modelers could simulate the impacts that would need to be created into products if the proper products were developed in connection to climate change.

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