PULA Advisors AG in partnership with Leadway Assurance Company Limited, Heifer International, and AFEX Commodity Exchange has commenced payment of N110 million agricultural insurance claims to Nigerian farmers.
The country commercial manager, PULA Advisors AG, Dr Mike Enahoro, in a statement issued in Abuja, said the payment of the money began the 2023 Wet Season Insurance Claims Pay-out Ceremony, which PULA facilitated.
The statement announced that the insurance payout forms the basis of the “Naija Unlock Signature Program” coordinated by Heifer in conjunction with AFEX and her network of Rice, Maize, Soya and Ginger small-holder farmers.
Enahoro said the farmers are spread across Niger, Kaduna, Jigawa, Plateau, Kebbi and Jigawa States.
He added that Leadway Assurance, being the lead insurer of the programme, is to make the claims payout of N110 million to AFEX.
Enahoro said this is on behalf of Ginger farmers in Kaduna State, who suffered 100 per cent harvest loss due to the outbreak of the Ginger Blight disease.
He added that a total of 1,138 Ginger farmers were verified for compensation for payouts in respect of their harvest losses.
Enahoro noted that the payout ceremony has been made possible also because of the catalytic role of 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.
Enahoro asserted that the Heifer pre-financing model allows farmers to be insured during the farming season but deferred their payment for insurance services post-harvest when they are financially buoyant to pay for it.
He said the payout bears testimony to the impact of mitigating against agricultural risks that are currently experienced by the Nigerian small-holder farmers.
The PULA executive said losses, which were due to pests, diseases, climate change, and other critical factors, had necessitated the inclusion of insurance in the farming programme.
Enahoro said this is in order 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 small-holder farmers’ confidence is bolstered, food production guaranteed and food systems resilience is mainstreamed in the 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 Advisors, a leader in agricultural insurance innovation, streamlined the claims assessment and payout process, ensuring transparency and efficiency in delivering financial support to aggrieved farmers that suffered losses.
Heifer Project International, a global non-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’ 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 small-holder farmers’ businesses, thereby contributing to the food security of the nation.
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 on insurance to protect their investments and indemnify their raw-material agricultural supply chain against crop losses.
The partnership has enjoined its collective aspiration towards expanding this engagement and ensuring that more Nigerian small-holder farmers are registered and insured during the 2024 farming season.
Farmers and investors involved in the production value chains are therefore advised to take advantage of this partnership and have their projects insured against climatic and other risks during the 2024 wet season and beyond.
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