The National Agricultural Development Fund has entered a tripartite Memorandum of Understanding with Leadway Assurance Company Limited and Verdure Climate to expand agricultural insurance and climate-resilient finance for smallholder farmers. The agreement was signed during the National Dialogue on Innovative Agric Insurance and Climate Finance in Abuja and will support the implementation of an AGRA project focused on Building Farmers’ Resilience through Innovative Insurance Models and Financial Instruments.
The Executive Secretary of the Fund Mohammed Ibrahim, represented by Nasir Ingawa, General Manager, Partnerships and Investor Relations, said the partnership connects directly with the Fund’s goal of growing agricultural lending across the country.
He noted the rising challenges farmers face due to climate change and limited access to credit. 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.”
Ibrahim explained that introducing Index-based and Pay-at-Harvest insurance products would help strengthen investor confidence and encourage more participation in the agriculture sector.
According to him, the collaboration will focus on bundling insurance with agricultural loans and scaling credit-linked insurance for rice, soybeans and maize value chains in priority states. He also stated that the initiative will embed climate-smart agriculture practices into loan products offered by the Fund.
He said the partnership will also support the introduction of digital climate advisory services and improve the capacity of business development service providers working with farmers. At the event, Leadway Assurance’s Head of Agriculture and Risk Solutions Fatona Ayoola Paul described the agreement as a strategic step towards stronger climate preparedness in the agricultural space. He commended the management of the National Agricultural Development Fund for offering the policy direction needed for such interventions to thrive.
The dialogue brought together financial institutions, government agencies, insurers, anchor companies and farmer groups to discuss ways to integrate index insurance into agricultural lending. Stakeholders also examined methods for unlocking more private sector financing to support rural producers.
The project forms part of AGRA 3.0, which aims to expand access to finance, build better market linkages, deepen innovative insurance options and strengthen the resilience of thousands of farmers between 2025 and 2027.
