In an attempt at protecting Nigeria’s fragile food system from climate shocks, Leadway Assurance, in partnership with the Presidential Food Systems Coordinating Unit, and PULA has disbursed N396.7 million in insurance claims to smallholder farmers across four states
The pay-out, unveiled at the 2025 Wet Season Insurance Pay-out Ceremony under the National Agribusiness Planning Mechanism, held in Abuja, benefited farmers in Plateau, Borno, Kaduna and Taraba states that suffered losses linked to erratic weather and other climate-related risks.
A breakdown of the N396.7 million insurance payout showed that farmers in Borno State received the largest share of N127.19 million, followed by Taraba State with N154.31 million. Kaduna State got N69.73 million, while Plateau State received N45.47 million, reflecting the varying levels of losses recorded across the beneficiary states.
The intervention highlights a growing shift toward using insurance as a safety net to stabilise agricultural production and prevent farmers from sliding into poverty after a bad season.
Speaking at the event, the Chief Executive Officer of Leadway Assurance, Gboyega Lesi, described agriculture as inherently vulnerable, stressing that insurance remains critical to sustaining livelihoods. He said, “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.
“I want to specifically acknowledge our partners in the PFSCU. Your coordination is vital in aligning these efforts with the national food security agenda. PULA Advisors, your expertise in risk assessment and yield data continues to drive the transparency and accuracy of these payouts. “To the state governments represented here, your commitment to scaling this coverage at the sub-national level is the key to reaching farmers in every corner of the country. As we review the impact of the just-concluded wet season, we are already looking ahead”.
Lesi noted that data gathered from the exercise would shape future interventions, adding that insurance must become more accessible and impactful for farmers. “The data we have gathered is not just for retrospection, it is a blueprint for our strategy for the next farming season. We remain committed to leveraging technology and innovation to ensure that insurance is accessible, understandable, and most importantly, impactful to our beneficiaries.
“This payout is a testament to the hard work of our farmers and their foresight in embracing insurance. We are proud to be your partner in growth and in building a resilient Nigerian agricultural sector”, he added.
He further emphasised that the initiative reflects a broader commitment to supporting farmers during periods of distress. “This payout underscores our promise to stand by our farmers when it matters most. Agricultural insurance is a vital tool for building resilience within Nigeria’s food systems, and we are proud to support farmers in mitigating the impact of climate risks. This also reflects what is possible when public and private sector partners align around a shared vision for agricultural transformation. By leveraging data-driven insurance solutions, we ensure that vulnerable farmers are not left behind amid climate uncertainties”, Lesi stated.
The Global Head of Agricultural Risk Solutions at Leadway Assurance, Fatona Ayoola, said prompt claims payment is central to building trust among farmers. “At Leadway Assurance, we view agricultural resilience as vital to Nigeria’s food security, and our commitment to claims payment exemplifies this ethos. We understand that empowering farmers to recover from losses, rebuild, reinvest, and sustain their operations fosters the confidence needed to continue producing food that nourishes the nation”, Ayoola said.
He commended the PFSCU’s NAPM framework, describing it as a clear example of effective public-private collaboration in addressing agricultural risks.
The Country Manager of PULA Advisors, Michael Enahoro, said the programme had demonstrated that large-scale agricultural insurance is feasible in Nigeria. According to him, “This is a proof of concept that indemnifying agricultural production in Nigeria is workable and can be done at scale to ensure food security. “But it is important to note that the payout itself is not the goal. The goal is to increase food production. If you aggregate the losses farmers experience annually, it runs into trillions of naira. What we are doing is starting somewhere and building a system.”
Enahoro revealed that over 43,000 farmers were captured under the scheme, though initial implementation challenges exposed gaps 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”, he said.
He stressed that sustained commitment over multiple farming cycles would be required to entrench an insurance culture among farmers. “You cannot do this once. It has to be done repeatedly, two, three, four cycles, until farmers begin to see insurance as part of their farming practice. Over time, they will take ownership, and governments will only play a supporting role.
“This is how we build a system where tens of thousands of farmers can independently insure their farms. That is when the programme truly succeeds,” he added.
Enahoro also warned that rising input costs, driven by global economic pressures, were worsening farmers’ vulnerability. “Inputs have increased by as much as 70 to 90%. A farmer who suffered losses last season is now expected to raise as much as N500,000 to farm again. Without structured support from government and partners, that is simply out of reach”, he said.
He noted that the initiative requires sustained coordination among federal and state governments, development partners, and the private sector. “The road ahead will be challenging, but we must stay the course. This is not about us, it is about millions of Nigerians. By some estimates, up to 65 million Nigerians are involved in agriculture. Supporting them means securing the country’s food future”, he added.
Findings show that the latest payout builds on earlier interventions. In 2024, Leadway and its partners paid N110 million to 1,138 farmers affected by ginger blight disease, reinforcing confidence in agricultural insurance schemes. Nigeria’s agricultural sector remains highly exposed to climate variability, including flooding, drought, and pest outbreaks, which frequently wipe out farmers’ investments and disrupt food supply chains.
Despite employing a significant portion of the population, access to formal insurance among smallholder farmers has remained low, largely due to cost, awareness gaps, and weak distribution systems. However, the collaborations between government agencies and private insurers signal a gradual shift toward risk-sharing mechanisms designed to protect farmers, boost productivity, and strengthen national food security. Scaling such initiatives could help reduce the country’s reliance on food imports while improving rural livelihoods.
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