Nigeria’s food security challenge is not only about how much food the country produces. It is also about how much of that food survives the journey from the farm to the consumer.

Agriculture employs more than 70 per cent of Nigeria’s population and remains a major contributor to the country’s economy. Yet large quantities of agricultural produce are lost after harvesting because of inadequate storage, poor transportation, limited processing capacity and weak market infrastructure.

These post-harvest losses in Nigeria have consequences far beyond individual farms. They reduce farmers’ incomes, push up food prices and limit the amount of food available to consumers.

One potential tool that could help address the problem is post-harvest insurance.

Nigeria’s Post-Harvest Loss Problem

Post-harvest losses refer to the quantitative and qualitative deterioration of agricultural produce after it has been harvested but before it reaches consumers or processors.

The Nigerian Stored Products Research Institute (NSPRI) has highlighted the scale of the problem, with estimates putting losses of agricultural commodities at between 40 and 55 per cent in some cases.

The losses are driven by several factors, including inadequate storage facilities, poor handling, pests, harsh weather conditions, weak transportation networks and limited access to processing technologies.

Fruits and vegetables are particularly vulnerable because of their short shelf life, while grains and other commodities can also suffer significant losses when stored or transported under poor conditions.

The economic cost is substantial.

Professor Lateef Sanni, Executive Director of NSPRI, has argued that reducing post-harvest losses could significantly ease pressure on food prices.

According to Sanni, even a 25 per cent reduction in post-harvest losses would make more agricultural commodities available for consumption and processing.

“If we can reduce post-harvest losses by even 25 per cent, no one would be claiming that there are high prices for commodities,” he said.

The argument is straightforward: when less food is lost, more food reaches the market.

Why Post-Harvest Insurance Matters

Post-harvest insurance is designed to protect farmers and other agricultural businesses against financial losses that occur after crops have been harvested.

Depending on the policy, coverage could potentially include losses caused by spoilage, storage failures, pest infestation, theft, fire and other unexpected events.

This distinguishes post-harvest insurance from traditional crop insurance, which generally focuses on risks during the growing season.

For Nigerian farmers, the period between harvesting and selling can be just as financially important as the production period.

A farmer may successfully grow a crop but lose a significant portion of the harvest because there is no suitable storage facility or because produce deteriorates before reaching the market.

Insurance cannot prevent the physical loss itself, but it can provide a financial safety net when covered losses occur.

That protection could help farmers maintain their incomes and reduce the financial shock associated with unexpected post-harvest losses.

Insurance Alone Cannot Solve the Problem

Post-harvest insurance should not, however, be viewed as a replacement for better agricultural infrastructure.

Poor roads, inadequate warehouses, limited cold-chain facilities, insufficient processing capacity and weak market access are among the structural problems contributing to post-harvest losses in Nigeria.

Insurance can provide compensation after a loss, but better infrastructure can prevent the loss from occurring in the first place.

This is why experts argue that insurance should form part of a broader agricultural risk-management strategy.

Taiwo Phillips, an insurance expert and independent consultant, says insurance could encourage better storage practices because insurers may require farmers to use approved facilities.

“Insurers may require farmers to store their crops in approved facilities, indirectly encouraging investment in better storage infrastructure, which further reduces spoilage,” Phillips says.

The combination of insurance and improved infrastructure could therefore create a cycle in which farmers have greater protection while also adopting better post-harvest practices.

Low Insurance Penetration Remains a Challenge

One of the biggest obstacles is the low level of agricultural insurance coverage in Nigeria.

Agricultural insurance remains relatively underdeveloped, particularly among smallholder farmers who often have limited disposable income and may be reluctant to take on additional costs.

For farmers already struggling with high input prices, transportation expenses and limited access to credit, paying an insurance premium can appear less urgent than meeting immediate production needs.

Awareness is another challenge.

Many smallholder farmers may have limited knowledge of available agricultural insurance products or may not fully understand how claims and compensation work.

Building trust will therefore be critical.

Insurance companies, government agencies, financial institutions and agricultural organizations will need to design products that are affordable, simple to understand and suited to the realities of smallholder farming.

What Nigeria Can Learn from Other Markets

Other countries have experimented with agricultural risk-management systems that offer lessons for Nigeria.

India, for example, has developed warehouse receipt systems that allow farmers to store produce in certified warehouses and use warehouse receipts to access financing.

Such systems can provide farmers with an alternative to selling immediately after harvest, when prices may be low. Where insurance is incorporated into the storage arrangement, farmers can also receive protection against specified losses affecting stored commodities.

Kenya has similarly developed agricultural risk-management approaches that combine insurance with broader efforts to protect farmers against production and post-harvest risks.

The lesson for Nigeria is not necessarily to copy these models wholesale, but to develop an integrated system that combines insurance, storage, finance and market access.

Government Has a Critical Role

Government support will be essential if post-harvest insurance in Nigeria is to move beyond a relatively small market.

One option is subsidising premiums for smallholder farmers, making insurance more affordable and encouraging wider participation.

Government can also invest in the infrastructure that reduces post-harvest losses, including rural roads, storage facilities, processing centres and cold-chain systems.

Public-private partnerships could further connect farmers with insurance companies, financial institutions, technology providers and agricultural processors.

These measures could complement existing government efforts to reduce post-harvest losses.

The Federal Government has previously identified the reduction of agricultural losses as part of its food-security strategy. The Special Agro-Industrial Processing Zones (SAPZ) programme, supported by development institutions including the African Development Bank, the International Fund for Agricultural Development and the Islamic Development Bank, is designed to connect agricultural production with processing and markets.

Agriculture Minister Abubakar Kyari has said the government wants to reduce post-harvest losses significantly, highlighting the issue as central to improving food security and farmers’ livelihoods.

More Food from Existing Production

Nigeria’s food-security challenge is often framed around the need to increase agricultural production.

But there is another opportunity: making better use of the food the country already produces.

If large quantities of crops are lost after harvest, increasing production alone may not deliver the expected improvement in food availability.

Reducing those losses could effectively add to the country’s food supply without requiring farmers to cultivate additional land.

This is particularly important as Nigeria’s population continues to grow and demand for food increases.

Post-harvest insurance could support that effort by protecting farmers financially while encouraging better storage, handling and risk-management practices.

From the Farm to the Market

For Nigeria to strengthen its food security, the agricultural value chain must be considered as a whole.

Farmers need access to inputs and finance before planting. During production, they need agricultural extension services, technology and climate information. After harvest, they need storage, transportation, processing, markets and financial protection against unexpected losses.

Post-harvest insurance can become one part of that ecosystem.

Mrs Erimma Stanley, an insurance executive based in Delta State, argues that Nigeria’s agricultural potential remains constrained by the significant losses that occur after harvest.

She believes a stronger framework for post-harvest insurance, supported by public-private partnerships, could protect farmers while helping more food reach consumers.

The long-term objective should therefore not be simply to compensate farmers when food is lost.

It should be to create an agricultural system in which fewer losses occur, farmers are better protected when they do occur, and more of Nigeria’s agricultural output reaches the market.

For a country confronting rising food prices and persistent food insecurity, reducing post-harvest losses could be one of the most immediate ways to get more value from every harvest.

And with the right combination of insurance, infrastructure, finance and policy support, post-harvest insurance could become an important part of Nigeria’s strategy to turn agricultural production into greater food security.