The Federal Government, in collaboration with the Presidential Food Systems Coordinating Unit (PFSCU), Leadway Assurance, and PULA Advisors, has disbursed ₦396.7 million in insurance claims to smallholder farmers.

This initiative, unveiled during the 2025 Wet Season Insurance Payout Ceremony in Abuja, represents a significant move toward stabilizing Nigeria’s agricultural sector against the increasing threats of climate change and erratic weather.

The disbursement specifically benefited farmers across four states Borno, Taraba, Kaduna, and Plateau who faced significant losses during the last farming season. A breakdown of the funds reveals that Taraba State received ₦154.31 million, Borno State received ₦127.19 million, Kaduna State was allocated ₦69.73 million, and Plateau State received ₦45.47 million, with the distribution based on the severity of damages recorded in each region.

Gboyega Lesi, CEO of Leadway Assurance, emphasized that agriculture remains inherently exposed to environmental risks, making insurance a critical tool for survival. He highlighted that these payouts are designed to ensure that a bad farming season does not lead to a total loss of livelihood for farmers, thereby providing the necessary stability to continue production despite climate uncertainties.

Looking ahead, the partners intend to use the data gathered during this exercise to refine their strategy for future farming seasons. Lesi noted that the primary objective is to move beyond retrospective analysis and instead create a blueprint that makes insurance more accessible, understandable, and impactful, utilizing technology and innovation to support the agricultural community effectively.

Michael Enahoro, the Country Manager of PULA Advisors, described the program as a vital “proof of concept,” showing that large-scale agricultural insurance is indeed feasible in Nigeria. He stressed that while the payout provides immediate relief, the ultimate goal is to foster a system that boosts national food production, noting that the aggregate annual losses in the sector are vast, and this system is the necessary starting point.

Implementation of the scheme highlighted both opportunities and challenges, including the identification of over 43,000 farmers and significant gaps in awareness.

Furthermore, Enahoro warned of rising economic pressures, noting that agricultural input costs have surged by 70 to 90 percent. He emphasized that for a farmer struggling with previous losses, the cost to restart operations is currently out of reach without structured government and private sector support.

To achieve lasting resilience, stakeholders advocate for sustained commitment over multiple farming cycles to fully entrench an insurance culture among farmers. This effort builds on previous successes, such as the 2024 payout to farmers affected by ginger blight. By continuing these risk-sharing mechanisms, the government hopes to reduce reliance on food imports, protect rural livelihoods, and secure Nigeria’s long-term food future.