Leadway, FG Disburse ₦396.7m Insurance Lifeline to Climate-Hit Farmers Across Four States

The Chief Executive Officer of Leadway Assurance, Gboyega Lesi

In a strategic move to cushion the impact of climate shocks on Nigeria’s agricultural sector, Leadway Assurance, in collaboration with the Federal Government through the Presidential Food Systems Coordinating Unit (PFSCU) and PULA Advisors, has disbursed ₦396.7 million in insurance claims to smallholder farmers across four states.
The payout, announced at the 2025 Wet Season Insurance Pay-out Ceremony under the National Agribusiness Planning Mechanism (NAPM) in Abuja, benefited farmers in Plateau, Borno, Kaduna, and Taraba states who suffered losses due to erratic weather patterns, flooding, drought, and other climate-related risks.
State-by-State Distribution Reflects Loss Severity
A breakdown of the disbursement shows Taraba State receiving the highest share of ₦154.31 million, followed by Borno with ₦127.19 million. Kaduna farmers received ₦69.73 million, while Plateau accounted for ₦45.47 million, reflecting the varying degrees of agricultural losses recorded during the wet season.
The initiative reached over 43,000 farmers, many of whom faced severe setbacks that could have jeopardised their ability to return to farming in the next cycle.
Strengthening Food Security Through Insurance
Speaking at the event, the Chief Executive Officer of Leadway Assurance, Gboyega Lesi, described agriculture as highly vulnerable to environmental risks, noting that insurance is increasingly becoming a critical tool for protecting farmers’ livelihoods.
He emphasised that climate insurance ensures that a single bad season does not translate into long-term economic hardship for farmers, adding that the partnership aligns with Nigeria’s broader food security agenda.
Lesi further noted that data gathered from the payout exercise would inform future interventions, with a focus on expanding access, improving transparency, and leveraging technology to scale agricultural insurance across the country.
Building Farmer Confidence and Resilience
Also speaking, Fatona Ayoola stressed that timely claims settlement is essential for building trust among farmers and encouraging wider adoption of insurance solutions.
He explained that prompt payouts enable farmers to recover quickly, reinvest in their farms, and sustain food production, thereby contributing to national food security.
On his part, Michael Enahoro described the initiative as a milestone in demonstrating that large-scale agricultural insurance is feasible in Nigeria.
According to him, while the payout provides immediate relief, the broader objective is to boost food production and create a sustainable risk management system for farmers.
Challenges Highlight Need for Scale and Continuity
Despite the success recorded, Enahoro pointed out implementation challenges, including gaps in farmer identification and awareness. He revealed that many beneficiaries were initially unaware they were part of the scheme, underscoring the need for improved data systems and outreach.
He also warned that rising input costs—now estimated to have increased by 70 to 90 per cent—are compounding farmers’ vulnerability, making recovery from losses even more difficult without structured financial support.
A Growing Shift in Agricultural Policy
The latest disbursement builds on earlier interventions, including the ₦110 million payout in 2024 to farmers affected by ginger blight disease, signalling a growing commitment to integrating insurance into Nigeria’s agricultural framework.
With approximately 65 million Nigerians engaged in agriculture, stakeholders say scaling such initiatives could play a pivotal role in stabilising rural incomes, boosting productivity, and reducing the country’s dependence on food imports.
Nigeria’s agricultural sector remains highly exposed to climate variability, with frequent occurrences of floods, droughts, and pest infestations disrupting production cycles and threatening food supply chains.
However, the collaboration between government agencies and private insurers reflects a shift toward risk-sharing mechanisms designed to protect farmers and build long-term resilience.
Outlook
Stakeholders emphasised that sustained implementation over multiple farming cycles will be critical to embedding an insurance culture among farmers. They also called for stronger coordination among federal and state governments, development partners, and private sector players.
As climate uncertainties intensify, the ₦396.7 million payout stands as both a relief measure and a forward-looking strategy—one that positions agricultural insurance as a cornerstone of Nigeria’s food security framework.
Leadway Assurance, in partnership with the FG and PULA Advisors, disburses ₦396.7m insurance claims to over 43,000 farmers, boosting resilience against climate shocks..