BY NKECHI NAECHE-ESEZOBOR—A consortium of insurance companies led by Leadway Assurance Company Limited, in partnership with Rex Insurance, NSIA Insurance, AIICO Insurance Plc, and the Nigerian Agricultural Insurance Corporation (NAIC), has paid a total of ₦181,917,900 in insurance claims to livestock herders across Adamawa, Bauchi, and Plateau States.
The payouts, made under the Index-Based Livestock Insurance (IBLI) programme, provide timely financial relief to pastoralists affected by drought and other climate-related shocks.
Using satellite-driven data to trigger claims, the programme ensures transparency, efficiency, and rapid compensation, helping herders protect their livestock, secure livelihoods, and strengthen resilience against the impacts of climate change.
The IBLI programme is designed to provide timely financial relief to livestock owners affected by drought and other climate shocks and avails them with financial resources to purchase pasture for their animals whenever there is drought in the grazing area thereby protecting the animal from mortality. Unlike conventional insurance, IBLI relies on objective indices such as satellite-based vegetation data to trigger payouts, ensuring transparency, efficiency, and prompt compensation without the need for individual loss verification.
Leadway Assurance serves as the Lead Technical Partner for the IBLI programme, providing technical leadership in product design, risk management, and implementation, while working closely with its co-underwriters. The programme is further strengthened through partnerships with Africa Reinsurance Corporation (Africa Re), the reinsurer of the project,Livestock Productivity and Resilience Project (L-PRESS),International Finance Corporation (IFC) a member of the World Bank Group, thereby underscoring the importance of regional and international partnerships in the development and deployment of this innovative and bespoke insurance solutionsfor the benefit of cattle herders in Nigeria.
Mr. Ayoola Fatona, Global Head, Agriculture Risk Solutions, Leadway Assurance, highlighted the importance of collaboration in delivering impact at scale: “The IBLI claims payout underscores our commitment to delivering innovative, data-driven insurance solutions that protect livestock-dependent livelihoods. Through strong collaboration with our co-underwriters, L-PRESS, IFC and Africa Re as reinsurer, we are strengthening resilience among herders in Adamawa, Bauchi, and Plateau States while advancing sustainable agricultural risk management in Nigeria by Livestock farmers. By deploying this solution the herders adaptability and coping mechanism against the negative impact of climate change and global warming is further enhanced”
The claims paid represent verified index-triggered losses recorded during the insured period and demonstrate the effectiveness of the IBLI framework in responding to climate shocks affecting pastoral communities.
The IBLI consortium remains committed to expanding access to agricultural insurance through strong partnerships with reinsurers, governments, and development stakeholders, while promoting resilience, financial inclusion, and sustainable livelihoods within Nigeria’s livestock sector.
By this initiative, Leadway Assurance Company Limited has once again demonstrated its commitment to contributing to guaranteeing the food security of the Nation.
