Cynthia Ezekwe
PULA Advisors AG, an agricultural insurance and technology company, has partnered with Leadway Assurance Company Limited, Heifer International, and AFEX Commodity Exchange to facilitate the payment of N110 million in agricultural insurance claims to Nigerian farmers.
Speaking at an event which marked the beginning of the 2023 Wet Season Insurance Claims Pay-out plan, Mike Enahoro, country commercial manager at PULA Advisors AG, stated that the insurance payout is a part of the ‘Naija Unlock Signature Programme,’ which is coordinated by Heifer International in collaboration with other partners. The initiative, he explained, aims to support and empower Nigerian farmers by providing them with financial assistance in times of need, ensuring the stability and growth of the agricultural sector.
He explained further that Leadway Assurance, as the lead insurer of the programme, will issue a claims payout of N110 million to AFEX on behalf of ginger farmers in Kaduna State who experienced a devastating 100 percent harvest loss due to the ginger blight disease outbreak, in which a total of 1,138 ginger farmers have been verified for compensation in response to their harvest losses.
Enahoro attributed the success of the insurance payout in part to the crucial role played by Heifer International, noting that Heifer has facilitated the pre-financing of insurance premiums for farmers participating in the AFEX 2023 wet season farming programme, ensuring their coverage during the farming season. He also highlighted the significance of Heifer International’s pre-financing model, which enables farmers to benefit from insurance services during the critical farming period and subsequently pay for the coverage post-harvest when they are in a better financial position.
According to the PULA commercial manager, the claims payment signifies the impact of mitigating against agricultural risks that are currently experienced by the Nigerian smallholder farmers. He explained that the losses which were due to pests, diseases, climate change, and other critical factors had necessitated the inclusion of insurance in the farming programme, while stressing the need to protect farmers’ investments against crop or harvest failures emanating from climate change perils.
Commenting on the joint collaboration, he said, “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 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,” Enahoro explained.
A joint statement released by PULA Advisors AG, Leadway Assurance Company Limited, Heifer International, and AFEX Commodity Exchange further disclosed that the partnership between the organisations aim to expand their engagement and increase the number of registered and insured smallholder farmers in Nigeria during the 2024 farming season. The partners also stated their commitment to promoting sustainable growth and resilience within Nigeria’s agricultural sector.
