To shield Nigeria’s agriculture sector from the wreck of climate change, Leadway Assurance, in partnership with the Alliance for a Green Revolution in Africa, has unveiled an insurance programme for 21,000 smallholder farmers.
The initiative, in a statement made recently, is backed by a $399,900 grant and forms part of a three-year project titled ‘Building Farmers’ Resilience through Innovative Insurance Models and Financial Instruments.’ The project is scheduled to run from March 2025 to March 2028 across Kaduna, Nasarawa, and Niger States.
The project aims to deepen the resilience of smallholder farmers through climate-smart insurance and holistic value chain interventions.
Recognising the growing threats of unpredictable rainfall patterns, drought, high temperatures, and widespread crop failures, Leadway Assurance said it is leveraging innovation to redefine agricultural risk management in Nigeria’s rural areas.
At the core of the initiative 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 of their farmlands for better monitoring, while 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.
Commenting on the initiative, the Head of Agribusiness at Leadway Assurance, Fatona Ayoola, said, “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.”
The Country Director at AGRA, Rufus Idris, added, “For Nigeria’s agricultural transformation and food security efforts to succeed amid increased climate uncertainty, insurance needs to work better in helping smallholder farmers protect their farmlands and crops from climate change shocks—flood, drought, pest and diseases, etc. Hence, this project aims to help build on a proven model and catalyse resources for wider access to insurance and adoption by smallholder farmers.”
He described the initiative as a clear example of how strategic partnerships and innovative insurance models can create lasting resilience for Africa’s agricultural future.
