Leadway Assurance, in collaboration with the Alliance for a Green Revolution in Africa, has revealed an insurance scheme to protect 21,000 smallholder farmers against the destructive effects of climate change.
The program, which is supported by a $399,900 grant and is a component of a three-year project called “Building Farmers’ Resilience through Innovative Insurance Models and Financial Instruments,” was revealed in a statement that our reporter was given access to on Sunday, 27th April.
The project will take place in the states of Kaduna, Nasarawa, and Niger between March 2025 and March 2028.
At the initiative’s core is a “Pay at Harvest” crop insurance model, which allows farmers to defer insurance premium payments until after harvest, when they are more financially stable. The model is expected to lower barriers to insurance access, promote financial inclusion, and encourage greater adoption among farmers vulnerable to climate risks.
Leadway Assurance explained that the scheme builds on its earlier collaboration with Heifer International, under which over 60,000 farmers benefited from the Pay at Harvest model.
It added that the new AGRA-supported version would integrate additional services, including access to off-takers, extension services, early warning systems, market linkages, climate-smart farming practices, and financial literacy training.
It added that farmers will also benefit from digital mapping their farmlands for better monitoring. At the same time, public-private partnerships are being mobilised to unlock innovative financing tools, including access to green climate funds.
Leadway Assurance noted that it is collaborating with a consortium of expert partners, including Verdure Climate for risk analytics, PULA for tech-enabled insurance delivery, Rural Country Integrated Services Ltd for on-ground implementation, and development finance partners such as the National Agricultural Development Fund and Heifer International.
By 2028, the programme is expected to unlock $10 million in agricultural credit, introduce six farmer-focused financial products, and produce four sector-wide knowledge resources to scale adoption across Nigeria and beyond.
“By bringing bespoke parametric insurance solutions to underserved communities who are vulnerable to the negative impact of climate change and aligning them with broader value chain interventions, we are not only protecting livelihoods but also rebuilding trust in farming as a viable business for rural Nigerians,” said Fatona Ayoola, Head of Agribusiness at Leadway Assurance, in response to the initiative.
According to AGRA’s Country Director, Rufus Idris, “insurance needs to work better in helping smallholder farmers protect their farmlands and crops from climate change shocks, flood, drought, pest and diseases, etc, if Nigeria’s agricultural transformation and food security efforts are to succeed amid increased climate uncertainty.”
Therefore, this initiative intends to support the expansion of a tested model and mobilise resources for smallholder farmers’ acceptance and broader access to insurance.
“The initiative is a clear example of how innovative insurance models and strategic partnerships can create lasting resilience for Africa’s agricultural future,” he said.
Source: Punch
Image Credit: Business Post
