Livestock herders across Adamawa, Bauchi, and Plateau States have received a total of ₦181,917,900 in insurance claims under the innovative Index-Based Livestock Insurance (IBLI) programme, aimed at protecting pastoral communities from climate-related losses.
The claims were disbursed by a consortium of insurers led by Leadway Assurance Company Limited, in collaboration with Rex Insurance Limited, NSIA Insurance Limited, AIICO Insurance Plc, and Nigerian Agricultural Insurance Corporation (NAIC).
The payout ceremony, held in Yola, Adamawa State, marks a major milestone in deploying data-driven agricultural insurance solutions to safeguard pastoral livelihoods in Nigeria.
Protecting Herders Against Climate Risks
The Index-Based Livestock Insurance (IBLI) programme provides timely financial relief to livestock owners affected by drought and other climate shocks. The funds enable herders to purchase pasture and sustain their animals during dry spells, helping to prevent livestock mortality and economic devastation.
Unlike traditional insurance models, IBLI uses objective indices such as satellite-based vegetation data to trigger payouts. This eliminates the need for individual loss verification, ensuring:
- Transparency
- Faster claims processing
- Efficient and fair compensation
Strong Partnerships Driving Impact
As the Lead Technical Partner, Leadway Assurance provides expertise in product design, risk management, and programme implementation, working closely with its co-underwriters.
The initiative is further strengthened by partnerships with:
- Africa Reinsurance Corporation (Africa Re), the project’s reinsurer
- Livestock Productivity and Resilience Support Project (L-PRESS)
- International Finance Corporation (IFC), a member of the World Bank Group
These collaborations highlight the importance of regional and international cooperation in delivering innovative agricultural insurance solutions that strengthen resilience among Nigerian livestock farmers.
Boosting Agricultural Risk Management in Nigeria
Speaking at the event, Mr. Ayoola Fatona, Global Head of Agriculture Risk Solutions at Leadway Assurance, emphasised the significance of collaboration in achieving large-scale impact.
“The IBLI claims payout underscores our commitment to delivering innovative, data-driven insurance solutions that protect livestock-dependent livelihoods. Through strong collaboration with our partners, we are strengthening resilience among herders in Adamawa, Bauchi, and Plateau States while advancing sustainable agricultural risk management in Nigeria,” he said.
He added that the deployment of IBLI enhances herders’ adaptability and coping mechanisms against the negative impacts of climate change and global warming.
Strengthening Resilience Through Agricultural Insurance
With climate change increasingly threatening Nigeria’s agricultural sector, index-based insurance models like IBLI are emerging as critical tools for safeguarding rural livelihoods. The ₦181.9 million payout not only provides immediate relief but also reinforces the role of insurance in climate resilience, food security, and sustainable livestock production.
