The African Reinsurance Corporation (Africa Re), in collaboration with Livestock Productivity and Resilience Support Project (L-PRES) and a consortium of insurance providers and development partners, has launched a pioneering Index-Based Livestock Insurance (IBLI) and Livestock Risk Management pilot programme in Nigeria.
Hosted at the Transcorp Hilton Hotel, Abuja, the launch event brought together key stakeholders from government, the insurance industry, development institutions, and livestock-farming communities to celebrate what is being hailed as a major advancement in Nigeria’s agriculture and climate resilience agenda.
In her opening remarks, Temitope Akinowa, Regional Director for West Africa at Africa Re, highlighted the urgent need for innovative responses to climate-driven risks facing livestock farmers in the country.
“The climate crisis is increasingly becoming a driver of avoidable conflicts between herders and crop farmers. While multiple socioeconomic factors are at play, two of the most critical triggers are the rising demand for arable land and the encroachment on traditional grazing routes. With coordinated action from all stakeholders, we believe this insurance solution can become a powerful tool for reducing climate-driven conflicts and building resilience among both pastoralists and farming communities in northern Nigeria,” Akinowa stated.
The initiative was officially launched by the Honourable Minister of Livestock Development, Alhaji Idi Mukhtar Maiha, represented by Professor Eustace Iyayi, who affirmed the government’s support for the initiative as part of its broader national development strategy:
“The launch of the Index-Based Livestock Insurance (IBLI) Programme is more than the unveiling of an insurance product. It is a bold declaration that Nigeria will confront drought and conflict with data-driven solutions, robust public-private partnership, and an unshakable commitment to inclusive growth,” the Minister stated.
He further stressed the strategic importance of livestock to the national economy and rural livelihoods:
“Livestock is far more than an agricultural sub-sector. It is a cornerstone of Nigeria’s food security, rural livelihoods, and industrial growth. Current estimates place our national herd at well over 20 million livestock units, supporting close to 20% of the population through direct employment, trade, and allied services. Cattle, sheep, goats, poultry, and the emerging dairy enterprises inject an estimated seven trillion naira annually into the economy, contributing roughly nine percent of agricultural GDP and supplying over 30% of the nation’s protein intake,” he continued.
The event featured presentations on the technical aspects of the program by Dalili Advisors. Participating insurance companies that include REX Insurance, Leadway, AIICO, NAIC, and NSIA Insurance, reiterated their readiness to implement the product across the designated regions. Each partner affirmed their role in making this solution affordable, effective and accessible to livestock farmers.
During their detailed technical session, Dalili Advisors, the project’s technical consultants, further explained how parametric insurance will work using satellite data to monitor pasture conditions, with payouts automatically triggered when thresholds are breached. The team also outlined plans to leverage digital platforms to ensure transparency and timely delivery of insurance payouts to the beneficiaries.
The pilot phase of the programme is set to run from August 15, 2025, to March 30, 2026, targeting 20,000 livestock farmers across Sokoto, Bauchi, Adamawa, and Plateau States.
ABOUT AFRICA RE
The African Reinsurance Corporation (“Africa Re” or “the Corporation”) is an supranational organisation with headquarters in Lagos, Nigeria, and with a dual commercial and developmental mandate focused on the African insurance sector. The Corporation, created by a multilateral agreement signed in 1976, is owned by 42 member states of the African Union (AU), the African Development Bank (AfDB), 112 African insurance and reinsurance companies and three leading global insurance and reinsurance groups. The financial strength and credit rating of the Corporation is “A” by A.M. Best and “A-” by Standard & Poor’s.
The mission of the Corporation is “to foster the development of the insurance and reinsurance industry in Africa; to promote the growth of national, regional and sub-regional underwriting and retention capacities and to support African economic development.”
For more information about Africa Re and its initiatives, please visit Africa Re’s official website https://www.africa-re.com/
