Leadway Assurance, a prominent insurance provider in Nigeria, has partnered with the Alliance for a Green Revolution in Africa (AGRA) to launch a comprehensive agricultural insurance program designed to protect smallholder farmers from the escalating risks associated with climate change. This initiative, supported by a substantial grant of $399,900, is part of a three-year project, “Building Farmers’ Resilience through Innovative Insurance Models and Financial Instruments,” running from March 2025 to March 2028 across Kaduna, Nasarawa, and Niger States in Nigeria. The project aims to bolster the resilience of these vulnerable farmers by providing climate-smart insurance coupled with a suite of value chain interventions. It recognizes the increasing challenges faced by farmers due to unpredictable weather patterns, including erratic rainfall, prolonged droughts, extreme temperatures, and resulting crop failures. Leadway Assurance aims to revolutionize agricultural risk management in rural Nigeria by leveraging innovative insurance solutions.
Central to the program is the “Pay at Harvest” crop insurance model, a key feature designed to enhance accessibility and affordability for smallholder farmers. This model allows farmers to defer premium payments until after their harvest, when they have a more secure financial standing. This innovative approach effectively removes a significant barrier to insurance adoption, promoting financial inclusion and encouraging wider participation among farmers most vulnerable to climate-related risks. The “Pay at Harvest” model has already demonstrated its effectiveness in a previous collaboration between Leadway Assurance and Heifer International, where over 60,000 farmers benefited from the program. The AGRA-supported version expands on this successful model by integrating a broader range of services.
The enhanced program incorporates a holistic approach by integrating a suite of support services beyond insurance coverage. These services include access to off-takers, providing farmers with guaranteed markets for their produce, and extension services that offer valuable agricultural advice and training. Early warning systems will provide farmers with crucial information about impending weather events, allowing them to take proactive measures to protect their crops. Strengthening market linkages will improve farmers’ access to profitable markets, while training in climate-smart farming practices will enhance their ability to adapt to changing climatic conditions and improve their yields. Financial literacy training will further empower farmers to manage their finances effectively and make sound financial decisions.
To further enhance the program’s effectiveness, digital mapping of farmlands will be implemented, enabling better monitoring and assessment of crop conditions and potential risks. This technology-driven approach will provide valuable data for risk assessment and insurance payouts. Leadway Assurance is also actively mobilizing public-private partnerships to unlock innovative financing tools, including access to green climate funds, to further support the agricultural sector’s resilience to climate change. This collaborative effort aims to create a sustainable financial ecosystem for smallholder farmers, ensuring their long-term viability and contributing to food security in the region.
The project underscores a collaborative approach, bringing together a consortium of expert partners with diverse expertise. Verdure Climate will provide risk analytics, leveraging its expertise in climate-related risks to inform insurance product design and pricing. PULA, a leading provider of tech-enabled insurance solutions, will facilitate efficient and transparent insurance delivery. Rural Country Integrated Services Ltd will handle the crucial on-ground implementation, ensuring effective outreach to farmers and program delivery. Development finance partners such as the National Agricultural Development Fund and Heifer International will contribute their expertise and resources to support the program’s financial sustainability and scale. This collaborative partnership ensures a comprehensive and integrated approach to building farmers’ resilience.
The long-term impact of this initiative is significant. By 2028, the program is projected to unlock $10 million in agricultural credit, providing farmers with much-needed access to finance for investment and expansion. It aims to introduce six farmer-focused financial products, expanding the range of financial services available to farmers and tailoring them to their specific needs. Furthermore, the project will generate four sector-wide knowledge resources, disseminating valuable insights and best practices to promote wider adoption of climate-smart insurance and financial solutions across Nigeria and beyond. This knowledge sharing will contribute to building resilience in the agricultural sector on a larger scale. The initiative is hailed as a clear example of how strategic partnerships and innovative insurance models can create lasting resilience for Africa’s agricultural future. It emphasizes the importance of fostering financial inclusion and providing farmers with the tools and resources they need to thrive in the face of climate change. This approach not only protects livelihoods but also reinforces trust in farming as a viable and sustainable business, contributing to food security and economic development in rural communities.
