Nigeria has taken a major step toward strengthening farmer resilience against climate risks, as the National Agricultural Development Fund (NADF) entered a tripartite Memorandum of Understanding with Leadway Assurance Company Limited and Verdure Climate to scale up innovative agricultural insurance and climate-smart finance nationwide.
The agreement, signed during the National Dialogue on Innovative Agric Insurance and Climate Finance in Abuja, supports the AGRA-backed programme titled Building Farmers’ Resilience through Innovative Insurance Models and Financial Instruments.
Speaking at the event, NADF Executive Secretary, Mohammed Ibrahim represented by the General Manager, Partnerships and Investor Relations, Mr. Nasir Ingawa said the collaboration directly advances the Fund’s mandate to deepen agricultural financing and protect farmers from increasing climate vulnerabilities.
He noted that unpredictable weather patterns and limited access to finance have made solutions such as index-based insurance and blended finance indispensable for the sector.
He also stated that the introduction of index-based and pay-at-harvest insurance products would “go a long way in enhancing investor confidence”.
Under the partnership, the three organisations will jointly develop bundled insurance for agricultural loans, expand credit-linked insurance for rice, soybeans and maize value chains in priority states, and embed climate-smart agricultural practices into NADF loan offerings.
However, the initiative will further introduce digital climate advisory services and strengthen the capacity of business development service providers across the country.
Leadway Assurance, through its Head of Agriculture Risk Solutions, Mr. Fatona Ayoola Paul, described the partnership as a vital step in preparing Nigeria’s agricultural sector for emerging climate threats, commending NADF for providing a strong policy foundation for such innovations.
The national dialogue drew participants from financial institutions, government agencies, insurers, anchor firms and farmer organisations as they examined ways to integrate index insurance into agricultural lending and attract more private-sector investment into rural agriculture.
The project forms part of AGRA 3.0, which aims to improve finance access, enhance market linkages, expand innovative insurance products and strengthen resilience for thousands of farmers between 2025 and 2027.
