By Henry Uche
To bolster food security and shield Nigeria’s agriculture sector from the ravages of climate change, Leadway Assurance, in collaboration with the Alliance for a Green Revolution in Africa (AGRA), has unveiled a strategic insurance programme for 21,000 smallholder farmers.
The initiative, backed by a $399,900 grant, forms part of a three-year project titled “Building Farmers’ Resilience through Innovative Insurance Models and Financial Instruments”, and is scheduled to run from March 2025 to March 2028. It will be implemented across Kaduna, Nasarawa, and Niger States.
AGRA, a leading African institution focused on inclusive agricultural transformation and sustainable food systems, is supporting the project, which aims to deepen the resilience of smallholder farmers (SHFs) through climate-smart insurance and holistic value chain interventions.
Recognising the escalating threats posed by climate change, unpredictable rainfall, prolonged droughts, scorching temperatures, and widespread crop failures, Leadway Assurance is leveraging innovation to redefine agricultural risk management in Nigeria’s rural heartlands.
At the core of the initiative is the “Pay at Harvest” crop insurance model, which allows farmers to defer premium payments until post-harvest, when they are more financially stable. This novel approach removes entry barriers to insurance access, enhances financial inclusion, and increases adoption among farmers most vulnerable to climate shocks.
According to Leadway Assurance, the scheme builds on its earlier success with Heifer International, under which over 60,000 farmers benefitted from the Pay at Harvest model. The new AGRA-supported version adds layers of value by integrating access to off-takers, extension services, early warning systems, market linkages, climate-smart agronomy, and financial literacy training.
Farmers will also benefit from digital mapping of farmlands for enhanced monitoring, while key public-private partnerships are being mobilised to unlock innovative financing tools, including access to green climate funds, for climate insurance.
To ensure successful delivery, Leadway Assurance is working with a consortium of expert partners: Verdure Climate for risk analytics, PULA for tech-enabled insurance delivery, Rural Country Integrated Services Ltd for on-ground implementation, and development finance partners like the National Agricultural Development Fund (NADF) and Heifer International.
By 2028, the programme aims 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.
Describing the initiative as a turning point in agricultural risk management, Mr. Fatona Ayoola, Head of Agribusiness at Leadway Assurance, stated: “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.”
Dr. Rufus Idris, Country Director at AGRA, 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 catalyze resources for a wider access to insurance and adoption by smallholder farmers.”
He said the initiative remains a clear example of how strategic partnerships and innovative insurance models can create lasting resilience for Africa’s agricultural future.