Leadway Assurance Company Ltd., in partnership with Heifer Project International and Pula Advisors, has paid N110 million in claims to 1,138 ginger crop farmers in Kaduna State.
Mr Ayoola Fatona, Head of Regional Technical Services, Agriculture, Leadway Assurance, disclosed this in a statement on Tuesday in Lagos.
Fatona said that the farmers, managed by the AFEX Commodity Exchange, suffered significant losses during the 2023 rainy season.
The beneficiaries were compensated at the 2023 Wet Season Insurance Claims Payout Ceremony under the ‘Naija Unlock Signature Programme’ held recently.
According to Fatona, the farmers’ losses were caused by a widespread outbreak of the Fusarium fungal pathogen (Ginger blight), which led to the drying up of leaves, inhibited the growth of rhizomes, and ultimately the decay of ginger crops.
“This disease affected nearly all ginger farmers in Nigeria in 2023, resulting in a dramatic decline in crop yields and substantial financial setbacks,” he said.
Fatona emphasised the importance of agriculture to the livelihoods of communities, particularly smallholder farmers, and its role in ensuring the nation’s food security.
He explained that Leadway Assurance partnered with Heifer International and Pula Advisors to swiftly respond to the urgent situation and mitigate the farmers’ losses.
“This partnership has been actively involved in tackling climate-induced challenges in the agricultural sector.
“This is to ensure that smallholder farmers’ confidence is bolstered, food production guaranteed and food systems resilience is mainstreamed in an attempt to support the government’s ongoing drive to address food security challenges.
“We achieve this by ensuring that farmers’ claims are verified, catalogued, and processed expeditiously anytime they suffer from harvest losses,” he said.
Dr Lekan Tobe, Country Director, Heifer Project International, stated that the efforts of the three partners further demonstrate their commitment to smallholder farmers and the continuity of their businesses despite prevailing climate challenges.
Tobe noted that insurance is instrumental in renewing hope and mitigating losses.
“Through this partnership and the claims paid, we are confident that these farmers are properly positioned to thrive and further contribute to the agricultural sector in Nigeria,” he said.
Mr Chukwuma Kalu, Country Manager, West Africa Anglophone, Pula Advisors, added that the partnership was not a one-off collaboration but would be extended to other smallholder farmers across the country.
“We look forward to and have made plans to extend this initiative to smallholder farmers across Nigeria.
“At PULA, we are setting a roadmap with a focus on sensitisation and education for farmers to be aware of and take advantage of these interventions towards bolstering food security in our country,” Kalu said.
The News Agency of Nigeria (NAN) reports that this partnership follows similar successful initiatives, such as the introduction of Area Yield Index Insurance (AYII) in 2022 to support Nigerian rice farmers.
The programme aimed to counteract climate-induced challenges and restore confidence among smallholder farmers in the agricultural sector.
Heifer Project International, a global non-profit, pre-financed the insurance premiums for the farmers at the beginning of the season, providing a repayment option post-harvest.
Pula Advisors, a leader in agricultural insurance innovation, streamlined the claims assessment and payout process, ensuring transparency and efficiency in delivering financial support to the farmers.
AFEX Commodity Exchange, a leading commodity aggregator in Nigeria, supported smallholder farming and increased food productivity through its innovative value-chain financing model leveraging insurance.
Leadway Assurance Company Ltd., with over 50 years of experience, is a leading provider of innovative agricultural insurance solutions in Nigeria, focusing on agricultural risk management and sustainability.
Heifer Project International is dedicated to ending hunger and poverty while caring for the earth.
Pula Advisors designs and delivers innovative insurance solutions to protect smallholder farmers against climate risks, aiming to revolutionise agricultural insurance.
