The Federal Government, in collaboration with private sector partners, has disbursed ₦396.7 million in insurance payouts to smallholder farmers across four Nigerian states, in a move aimed at strengthening resilience against climate-related agricultural losses.
According to Punch Newspapers, the payout was executed through a partnership involving Leadway Assurance, the Presidential Food Systems Coordinating Unit (PFSCU), and PULA Advisors, under the National Agribusiness Planning Mechanism.
The intervention, unveiled during the 2025 Wet Season Insurance Pay-out Ceremony in Abuja, benefited farmers in:
Taraba State — ₦154.31 million
Borno State — ₦127.19 million
Kaduna State — ₦69.73 million
Plateau State — ₦45.47 million
In total, over 43,000 farmers were captured under the scheme, many of whom suffered losses due to erratic weather conditions, flooding, and other climate risks.
Industry leaders emphasised that agriculture remains highly vulnerable to environmental shocks, making insurance a critical safety net to prevent farmers from falling into poverty after a poor farming season.
Speaking at the event, stakeholders highlighted that the initiative reflects a growing shift toward data-driven agricultural insurance systems, designed to stabilise production and improve food security nationwide.
Officials also noted that while the payout is a major step, the broader goal is to expand insurance coverage across multiple farming cycles, ensuring that farmers adopt insurance as a standard part of agricultural practice.
Experts further warned that rising input costs—reportedly increasing by up to 70–90%—are compounding farmers’ vulnerability, underscoring the need for sustained government and private sector collaboration.
The initiative is seen as part of Nigeria’s wider effort to boost food security, protect rural livelihoods, and reduce dependence on food imports, especially as climate variability continues to impact agricultural productivity.