In a significant development for Nigeria's agricultural sector, the National Agricultural Development Fund (NADF) has entered into a strategic partnership to integrate insurance packages into agricultural financing schemes.
Tripartite Agreement for Agricultural Resilience
The National Agricultural Development Fund formalized a tripartite Memorandum of Understanding with Leadway Assurance Company Limited and Verdure Climate during the National Dialogue on Innovative Agric Insurance and Climate Finance held in Abuja. This collaboration, signed on 30 November 2025, represents a deliberate effort to scale up innovative agricultural insurance and climate-resilient finance specifically designed for smallholder farmers.
The initiative supports the implementation of an Alliance for Green Revolution in Agriculture (AGRA) project focused on building farmers' resilience through innovative insurance models and financial instruments.
Addressing Climate Challenges Through Innovation
Mohammed Ibrahim, the Executive Secretary of NADF, emphasized the critical timing of this partnership. Represented by Mr. Nasir Ingawa, General Manager of Partnerships and Investor Relations, Ibrahim highlighted the growing challenges posed by climate change and unpredictable weather patterns affecting Nigerian farmers.
"As we face increasing challenges due to climate change, unpredictable weather patterns, and limited access to finance, the role of innovative financial solutions such as index-based agricultural insurance and blended finance has never been more critical," stated the Executive Secretary.
The collaboration will specifically focus on several key areas:
- Bundling insurance products with agricultural loans
- Scaling credit-linked insurance for rice, soybeans, and maize value chains in priority states
- Embedding climate-smart agriculture practices into NADF loan products
- Introducing digital climate advisory services
- Strengthening the capacity of business development service providers
Enhancing Investor Confidence and Climate Preparedness
The introduction of Index-based and Pay-at-Harvest insurance products is expected to significantly enhance investor confidence in the agricultural sector. According to NADF officials, these innovative insurance models will provide much-needed security for both lenders and farmers facing climate-related uncertainties.
Mr. Fatona Ayoola Paul, Head of Agriculture and Risk Solutions at Leadway Assurance, described the partnership as a strategic step toward improving climate preparedness in Nigerian agriculture. He commended NADF management for establishing the policy foundation that enables such initiatives to flourish.
The national dialogue brought together diverse stakeholders including financial institutions, government agencies, insurers, anchor companies, and farmer groups. Participants examined strategies for integrating index insurance into agricultural lending and unlocking additional private-sector capital for rural producers.
This project forms part of AGRA 3.0, which targets increased access to finance, stronger market linkages, innovative insurance products, and improved resilience for thousands of farmers between 2025 and 2027. The initiative represents a comprehensive approach to addressing the interconnected challenges of agricultural financing and climate adaptation in Nigeria's vital farming sector.
