DistantNews
🇳🇬 Nigeria /Economy & Trade

FG disburses ₦396m insurance payout to farmers in four states

From The Punch · (4h ago) English Positive tone

Summarized and contextualized by DistantNews.

TLDR

  • The Nigerian Federal Government disbursed N396.7 million in insurance claims to smallholder farmers in Plateau, Borno, Kaduna, and Taraba states.
  • This payout, part of the National Agribusiness Planning Mechanism, aims to shield the agricultural sector from climate shocks and erratic weather.
  • Borno State received the largest share (N127.19m), followed by Taraba (N154.31m), Kaduna (N69.73m), and Plateau (N45.47m), reflecting varied losses.

In a significant move to bolster Nigeria's agricultural resilience, the Federal Government, through its Presidential Food Systems Coordinating Unit, has disbursed N396.7 million in insurance claims to smallholder farmers across four states. This initiative, unveiled at the 2025 Wet Season Insurance Pay-out Ceremony, directly addresses the devastating impact of climate change and unpredictable weather patterns on the nation's food system.

Agriculture is inherently exposed to the elements, but through the strategic application of climate insurance, we are ensuring that a bad season does not lead to a total loss of livelihood.

— Gboyega LesiHighlighting the importance of insurance in mitigating climate risks for farmers.

The distribution, which saw Borno State receiving the largest portion of the payout, highlights the government's commitment to providing a vital safety net for farmers. By partnering with Leadway Assurance and PULA Advisors, the program aims to prevent farmers from falling into poverty after experiencing crop losses due to climate-related risks, thereby stabilizing agricultural production.

The data we have gathered is not just for retrospection; it is a blueprint for our strategy for the next farming season. We remain committed to leveraging technology and innovation to ensure that insurance is accessible, understandable, and most importantly, impactful to our beneficiaries.

— Gboyega LesiDiscussing the use of data to improve future insurance interventions for farmers.

Gboyega Lesi, CEO of Leadway Assurance, emphasized the inherent vulnerability of agriculture and the critical role of insurance in sustaining livelihoods. He noted that the data gathered from this exercise will be instrumental in refining future interventions, ensuring that insurance solutions become more accessible, understandable, and impactful for Nigerian farmers. This proactive approach underscores a broader national strategy to build a more robust and resilient agricultural sector capable of withstanding future climate challenges.

This payout is a testament to the hard work of our farmers and their foresight in embracing insurance. We are proud to be your partner in growth and in building a resilient Nigerian agricultural sector

— Gboyega LesiAcknowledging the farmers' role and reaffirming the company's commitment.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog