LunagisthubFG Pays ₦396.7M Insurance to Farmers Hit by Climate Losses in Borno, Taraba, Kaduna, Plateau
In a major boost for food security, the Federal Government has paid out ₦396.7 million in insurance claims to smallholder farmers in four states affected by bad weather and climate risks.
The payout was announced Thursday, April 23, 2026, in Abuja at the 2025 Wet Season Insurance Pay-out Ceremony under the National Agribusiness Planning Mechanism. It’s a joint effort between the Presidential Food Systems Coordinating Unit (PFSCU), Leadway Assurance, and PULA Advisors.
The ₦396.7m was shared among farmers in four northern states based on recorded losses:
| State | Amount Received |
| Taraba | ₦154.31m |
| Borno | ₦127.19m |
| Kaduna | ₦69.73m |
| Plateau | ₦45.47m |
Taraba farmers received the highest amount, followed by Borno. The funds compensate for crop losses tied to erratic rainfall and other climate shocks during the last wet season.
Leadway Assurance CEO Gboyega Lesi said climate insurance is now critical to stop one bad harvest from wiping out farmers’ livelihoods.
“Agriculture is inherently exposed to the elements, but through the strategic application of climate insurance, we are ensuring that a bad season does not lead to a total loss of livelihood,” Lesi explained.
He praised the PFSCU for aligning the program with Nigeria’s food security goals and PULA Advisors for providing accurate risk and yield data that made the payouts transparent.
“This payout underscores our promise to stand by our farmers when it matters most. Agricultural insurance is a vital tool for building resilience within Nigeria’s food systems,” he added.
Fatona Ayoola, Global Head of Agricultural Risk Solutions at Leadway Assurance, stressed that quick claims settlement is key to getting more farmers to trust insurance.
“We understand that empowering farmers to recover from losses, rebuild, reinvest, and sustain their operations fosters the confidence needed to continue producing food that nourishes the nation,” Ayoola said.
He described the PFSCU’s National Agribusiness Planning Mechanism as a strong example of public-private collaboration to tackle agricultural.
Lesi noted that data from this wet season will guide strategy for the next farming cycle. The goal: make insurance more accessible, easier to understand, and more impactful for rural farmers.
“This payout is a testament to the hard work of our farmers and their foresight in embracing insurance. We are proud to be your partner in growth and in building a resilient Nigerian agricultural sector,” he said.
With climate shocks hitting harder, the FG is betting on insurance as a safety net to keep farmers farming and food supply stable. ₦396.7m just went to 4 states — and more coverage is planned.
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