PULA Advisors, in collaboration with Leadway Assurance Company Limited, Heifer International, and AFEX, has paid out N110 million to 1,138 ginger farmers in Kaduna state affected by blight disease in 2023 Wet Season farming
Under the auspices of the “Naija Unlock Signature Program,” this payout initiative, orchestrated by Heifer in conjunction with AFEX, offered insurance protection to smallholder farmers’ rice, maize, soybean, and ginger crops throughout Niger, Kaduna, Jigawa, Plateau, and Kebbi States.
As part of the program, Leadway Assurance, the lead insurer, paid out ₦110 million in claims to AFEX on behalf of ginger farmers in Kaduna State who suffered total harvest losses due to the Ginger Blight disease outbreak.
In his address at the event held on Thursday in Abuja, PULA’s Commercial Manager, Mr. Chukwuma Kalu, announced that more than 1,138 ginger farmers had been identified as beneficiaries of compensation. This decision followed a thorough verification confirming that these farmers had suffered 100% harvest losses.
He explained that agricultural losses caused by pests, diseases, climate change, and other critical factors highlighted the urgent need for insurance within the farming program to safeguard farmers’ investments against crop and harvest failures caused by climate change.
“The partnership has been actively involved in ensuring that climate-induced challenges in the agricultural sector are tackled,” he stated.
According to him, this would help strengthen smallholder farmers’ confidence, guarantee food production, and enhance the resilience of food systems, supporting the government’s ongoing efforts to address food security challenges.
He further explained that PULA achieves these goals by promptly verifying, cataloging, and processing farmers’ claims whenever they experience harvest losses. This helps to ensure that farmers receive the necessary support to recover and resume their agricultural activities.
PULA Advisors, a leader in agricultural insurance innovation, has helped to improve the claims assessment and payout process. Their efforts have ensured transparency and efficiency in providing financial assistance to farmers who have incurred losses.
Also speaking at the event, Dr. Lekan Tobe, Country Director of Heifer International Nigeria, noted that the payout ceremony was made possible primarily as a result of Heifer’s approach, whereby the insurance premiums of farmers participating under the AFEX 2023 wet-season farming program were prefinanced at the beginning of the planting season.
This model ensured that farmers were insured throughout the farming season, with the payment for these insurance services deferred until post-harvest, when the farmers were capable of fulfilling their financial obligations.
According to him, this approach provided financial protection to farmers and demonstrated Heifer’s commitment to supporting smallholder farmers by mitigating the risks associated with agricultural activities.
As part of its contribution to the partnership, Heifer Project International, a global non-profit organization, pre-financed the insurance premiums for the farmers at the beginning of the planting season, providing a post-harvest repayment option.
According to Mr. Fatoona Ayoola, Leadway’s Head of Financial Services, Leadway Assurance Company Limited, having over fifty years of experience in protecting livelihoods through comprehensive insurance coverage, helped to service farmers’ claims. By doing so, the company provides climate resilience and sustainability for smallholder farmers’ businesses, thereby contributing to the nation’s food security.
In his address, the Managing Director of AFEX Fair Trade Nigeria, Mr. Kamaldeen Raji, noted that the organization, which is one of Nigeria’s largest commodity stakeholders, partners with a large network of farmers and processors. According to him, the organization provides essential capital, infrastructure, and market access to improve agricultural productivity.
“AFEX’s innovative value-chain financing model incorporates insurance to safeguard investments and protect the agricultural supply chain from crop losses,” he said.
Dr. Michael Enahoro, in his closing remarks, stressed that the partnership collectively aimed to expand its reach and ensure that more Nigerian smallholder farmers are registered and insured for the 2024 farming season.
He urged farmers and investors involved in production value chains to take advantage of this partnership to secure their projects against climatic and other risks during the 2024 wet season and beyond.