Herders Receive N181.9m Insurance Payout

Nigeria’s efforts to strengthen agricultural insurance and climate risk protection have recorded a major milestone, with livestock herders in Adamawa, Bauchi and Plateau states receiving a total of N181.9 million in claims under the Index-Based Livestock Insurance (IBLI) scheme.

The payout underscores the growing role of innovative insurance solutions in safeguarding livelihoods and boosting resilience within the livestock sector, particularly against climate-related shocks such as drought.

The compensation, described as one of the most significant parametric agricultural insurance settlements in recent times, was facilitated by a consortium of insurers led by Leadway Assurance Company. Other participating firms include Rex Insurance, NSIA Insurance, AIICO Insurance, and the Nigerian Agricultural Insurance Corporation.

According to the underwriters, the disbursement followed verified losses triggered by predefined index conditions during the insured period, highlighting the increasing adoption of data-driven insurance models among pastoral communities.

Unlike traditional insurance systems that require physical loss assessments, the IBLI scheme relies on satellite data to monitor vegetation levels. Once conditions fall below agreed thresholds, payouts are automatically activated, ensuring faster and more transparent compensation.

Industry stakeholders note that the development reflects the rising importance of parametric insurance in addressing widespread climate risks across Nigeria’s agricultural value chain. The model also improves efficiency and scalability compared to conventional indemnity-based policies.

The scheme is supported by reinsurance from the Africa Reinsurance Corporation and partnerships with the Livestock Productivity and Resilience Support Project (L-PRESS) and the International Finance Corporation (IFC), a member of the World Bank Group. This collaboration signals stronger alignment between insurers, development partners and government-backed initiatives.

Speaking at the payout ceremony in Yola, Adamawa State, Leadway’s Global Head of Agriculture Risk Solutions, Ayoola Fatona, said the initiative demonstrates how data-driven underwriting can enhance resilience among livestock-dependent communities while promoting sustainable agricultural risk management.