The Federal Government has partnered with Leadway Assurance and PULA Advisors to disburse ₦396.7m in insurance claims to smallholder farmers affected by climate-related losses across four states.
The initiative was coordinated through the Presidential Food Systems Coordinating Unit and unveiled during the 2025 Wet Season Insurance Pay-out Ceremony under the National Agribusiness Planning Mechanism held on Thursday in Abuja.
Farmers in Plateau State, Borno State, Kaduna State and Taraba State benefited from the payout, which was designed to cushion the impact of erratic weather and other climate risks on agricultural production.
A breakdown of the disbursement shows that farmers in Borno received ₦127.19m, while Taraba farmers obtained the highest share at ₦154.31m. Kaduna farmers received ₦69.73m, while Plateau State farmers were paid ₦45.47m.
The intervention reflects a growing effort to deploy agricultural insurance as a safety net that protects farmers from severe financial losses and prevents them from slipping into poverty after poor harvests.
Speaking at the event, Chief Executive Officer of Leadway Assurance, Gboyega Lesi, described agriculture as an industry highly exposed to natural risks.
“Agriculture is inherently exposed to the elements, but through the strategic application of climate insurance, we are ensuring that a bad season does not lead to a total loss of livelihood,” he said.
Lesi commended the coordination role played by the Presidential Food Systems Coordinating Unit and highlighted the contribution of PULA Advisors in strengthening data-driven risk assessment and transparency in payouts.
He added that insights gathered from the programme would guide planning for future farming seasons.
“The data we have gathered is not just for retrospection; it is a blueprint for our strategy for the next farming season,” Lesi said.
He noted that the initiative demonstrates how public and private sector collaboration can support agricultural transformation and build resilience in Nigeria’s food system.
Also speaking, the Global Head of Agricultural Risk Solutions at Leadway Assurance, Fatona Ayoola, said prompt claims payment plays a key role in building trust among farmers and encouraging adoption of insurance.
“At Leadway Assurance, we view agricultural resilience as vital to Nigeria’s food security, and our commitment to claims payment exemplifies this ethos,” Ayoola said.
On his part, Country Manager of PULA Advisors, Michael Enahoro, described the programme as proof that large-scale agricultural insurance can work in Nigeria.
According to him, the initiative captured more than 43,000 farmers, although initial implementation revealed challenges in farmer identification and awareness.
“You had about 43,000 farmers we had to find. Many did not even know they were part of the programme. That shows the scale of the challenge, but also the opportunity,” Enahoro said.
He stressed that the scheme must run for several farming cycles before farmers fully embrace insurance as a normal part of agricultural practice.
Enahoro also warned that rising input costs are worsening farmers’ vulnerability. He noted that prices of key farm inputs have increased by between 70 and 90 per cent, making it difficult for farmers who suffered losses to finance the next planting season.
The payout builds on earlier interventions. In 2024, Leadway and its partners paid ₦110m to 1,138 farmers affected by ginger blight disease, strengthening confidence in agricultural insurance programmes.
Nigeria’s agricultural sector remains highly vulnerable to climate variability, including flooding, drought and pest outbreaks, which often destroy farmers’ investments and disrupt food supply chains.
However, collaborations between government agencies and private insurers are gradually introducing risk-sharing mechanisms designed to protect farmers, boost productivity and strengthen national food security.
Experts say scaling such programmes could reduce Nigeria’s reliance on food imports while improving livelihoods for millions of rural households that depend on farming.
