PULA Advisers AG, in partnership with Leadway Assurance Company Limited, Heifer International, and AFEX Commodity Exchange, began paying N110 million in agricultural insurance claims to Nigerian farmers on Thursday.

In a statement by Mike Enahoro, country commercial manager, PULA Advisors AG, it is stated that the ceremony started the 2023 Wet Season Insurance Claims Payout Ceremony facilitated by PULA.

The statement announced that the insurance payout forms the basis of the ‘Naija Unlock Signature Programme’ coordinated by Heifer in conjunction with AFEX and her network of rice, maize, soy and ginger smallholder farmers.

Mr Enahoro said the farmers are spread across Niger, Kaduna, Jigawa, Plateau, Kebbi and Jigawa. He added that Leadway Assurance, the programme’s lead insurer, will pay N110 million in claims to AFEX.

Mr Enahoro said this on behalf of ginger farmers in Kaduna, who suffered 100 per cent harvest loss due to the outbreak of the ginger blight disease. He added that 1,138 ginger farmers were verified for compensation for payouts in respect of their harvest losses.

Mr Enahoro says the payout ceremony has also been made possible because of the catalytic role played by Heifer International. He said Heifer is responsible for pre-financing the insurance premiums of farmers participating under the AFEX 2023 wet season farming programme at the start of the planting season.

Mr Enahoro asserted that the Heifer pre-financing model allows farmers to be insured during the farming season but defers their payment for insurance services post-harvest when they are financially able to pay for them.

He said the payout bears testimony to the impact of mitigating agricultural risks currently experienced by Nigerian smallholder farmers.

The PULA executive said losses were due to pests, diseases, climate change, and other critical factors necessitating insurance inclusion in the farming programme.

Mr Enahoro said this was to protect farmers’ investments against crop or harvest failures emanating from climate change perils.

“The partnership has been actively involved in ensuring that climate-induced challenges in the agricultural sector are tackled. This is in order to ensure that smallholder farmers’ confidence is bolstered, food production is guaranteed, and food systems resilience is mainstreamed in an attempt to support the government’s ongoing drive to address food security challenges.

“We are able to achieve this by ensuring that farmers’ claims are verified, catalogued and processed expeditiously anytime they suffer from harvest losses,” he said.

PULA Advisers, a leader in agricultural insurance innovation, streamlined the claims assessment and payout process, ensuring transparency and efficiency in delivering financial support to aggrieved farmers who suffered losses.

Heifer Project International, a global not-for-profit organisation, pre-financed the insurance premiums for the farmers at the beginning of the season, providing a post-harvest repayment option.

Leadway Assurance Company Limited, with over 50 years of experience in protecting livelihoods through comprehensive insurance coverages, has once again demonstrated its competence in servicing farmers’ claims.

By so doing, Leadway is providing climate resilience and sustainability for smallholder farmers’ businesses, thereby contributing to the nation’s food security.

AFEX, one of the largest commodity players in Nigeria, works with an expansive network of farmers and processors, providing them with the capital, infrastructure and market access needed to support food productivity.

AFEX’s innovative value-chain financing model leverages insurance to protect their investments and indemnify their raw-material agricultural supply chain against crop losses.

The partnership has enjoined its collective aspiration to expand this engagement and ensure that more Nigerian smallholder farmers are registered and insured during the 2024 farming season.

Farmers and investors involved in the production value chains are advised to take advantage of this partnership and have their projects insured against climatic and other risks during the 2024 wet season. 

(NAN)