The Federal Government has disbursed ₦396.7 million in insurance claims to smallholder farmers in four states as part of efforts to protect Nigeria’s food system from climate-related risks.
The payout, facilitated through the Presidential Food Systems Coordinating Unit in partnership with Leadway Assurance and PULA Advisors, was unveiled at the 2025 Wet Season Insurance Pay-out Ceremony held in Abuja.
Farmers in Plateau, Borno, Kaduna, and Taraba states benefited from the scheme after experiencing losses due to erratic weather and other climate challenges. Taraba received the highest share at ₦154.31 million, followed by Borno with ₦127.19 million, Kaduna with ₦69.73 million, and Plateau with ₦45.47 million.
The initiative reflects a growing reliance on agricultural insurance as a safety net to help farmers recover from losses and maintain production.
Speaking at the event, Leadway Assurance CEO Gboyega Lesi highlighted the vulnerability of agriculture to climate conditions, noting that insurance plays a critical role in protecting farmers’ livelihoods and ensuring that one bad season does not lead to total financial loss.
He added that insights gathered from the programme would guide future strategies, with a focus on making insurance more accessible and impactful through technology and innovation.
Other stakeholders emphasised the importance of prompt claims payments in building trust among farmers and strengthening resilience within the agricultural sector.
PULA Advisors also noted that the initiative demonstrates the viability of large-scale agricultural insurance in Nigeria, while stressing the need for sustained implementation over multiple farming cycles to fully embed an insurance culture among farmers.
The programme has reached over 43,000 farmers, though challenges such as low awareness and identification gaps remain. Experts say continued collaboration between government, private sector players, and development partners will be key to scaling the initiative.
The payout builds on previous interventions, including compensation to farmers affected by crop diseases, and highlights ongoing efforts to mitigate the impact of climate change on agriculture.
Overall, the initiative is seen as a step toward improving food security, boosting productivity, and reducing farmers’ vulnerability to shocks.
