In a deliberate move to infuse insurance into agricultural loans, the National Agricultural Development Fund (NADF) has signed a tripartite Memorandum of Understanding (MoU) with Leadway Assurance Company Limited and Verdure Climate to scale up innovative agricultural insurance and climate-resilient finance for smallholder farmers.
The agreement, signed at the National Dialogue on Innovative Agric Insurance and Climate Finance in Abuja, will support the implementation of an Alliance for Green Revolution in Agriculture (AGRA) project on Building Farmers’ Resilience through Innovative Insurance Models and Financial Instruments.
The Executive Secretary of NADF Mohammed Ibrahim, who was represented by Mr Nasir Ingawa, General Manager, Partnerships and Investor Relations, said the partnership aligns directly with the Fund’s mandate to expand agricultural lending.
He said “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.”
The ES noted that the introduction of Index-based and Pay-at-Harvest insurance products would go a long way in enhancing investor confidence.
He added that the collaboration will focus on bundling insurance with agricultural loans, scaling credit-linked insurance for rice, soyvbeans and maize value chains in priority states, and embedding climate-smart agriculture practices into NADF loan products.
It also aims to introduce digital climate advisory services and strengthen the capacity of business development service providers, he stated.
The company’s Head of Agriculture and Risk Solutions, Leadway Assurance Mr Fatona Ayoola Paul, described the partnership as a strategic step towards improving climate preparedness in agriculture. He commended the management of NADF for providing the policy anchor that initiatives like theirs can build upon.
The dialogue brought together financial institutions, government agencies, insurers, anchor companies, and farmer groups to examine strategies for integrating index insurance into agricultural lending and unlocking more private-sector capital for rural producers.
The project is 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.
Source - https://guardian.ng
