In a bid to protect Nigeria’s vulnerable food system, the Federal Government, through the Presidential Food Systems Coordinating Unit, has partnered with Leadway Assurance and PULA Advisors to disburse N396.7 million in insurance claims to smallholder farmers affected by climate-related losses.
The payout was unveiled at the 2025 Wet Season Insurance Pay-out Ceremony held in Abuja, with beneficiaries drawn from Plateau, Borno, Kaduna, and Taraba states.
A breakdown of the disbursement shows that farmers in Borno received N127.19 million, while Taraba got the largest share of N154.31 million. Kaduna farmers received N69.73 million, and Plateau beneficiaries were paid N45.47 million, reflecting the scale of losses recorded in each state.
The initiative underscores a growing effort to use agricultural insurance as a buffer against climate risks, helping farmers recover from losses and continue production rather than falling into poverty after a failed season.
Speaking at the event, the Chief Executive Officer of Leadway Assurance, Gboyega Lesi, described agriculture as highly exposed to environmental risks, stressing that insurance is key to sustaining farmers’ livelihoods.
He noted that the partnership aligns with national food security goals and emphasised the role of data and technology in improving future interventions.
Also speaking, the Global Head of Agricultural Risk Solutions at Leadway, Fatona Ayoola, said timely claims payment is essential to building trust among farmers and encouraging wider adoption of insurance.
On his part, the Country Manager of PULA Advisors, Michael Enahoro, described the programme as proof that large-scale agricultural insurance is achievable in Nigeria.
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He revealed that over 43,000 farmers were captured under the scheme, although initial implementation exposed gaps in awareness and farmer identification.
Enahoro stressed that sustained efforts over multiple farming cycles would be needed to make insurance a regular part of farming practice, adding that rising input costs—some increasing by as much as 70 to 90 percent—are making it harder for farmers to recover without structured support.
Nigeria’s agricultural sector remains highly vulnerable to climate challenges such as flooding, drought, and pest outbreaks, which frequently disrupt food production and rural livelihoods.
While access to formal insurance among smallholder farmers is still limited, collaborations between government and private sector players signal a gradual shift toward building a more resilient agricultural system and strengthening long-term food security.
