The National Agricultural Development Fund (NADF) has signed a tripartite memorandum of understanding (MoU) to scale innovative agricultural insurance and climate-resilient finance for smallholder farmers.
The agreement with Leadway Assurance Company Limited and Verdure Climate was endorsed on Friday at the national dialogue on innovative agriculture insurance and climate finance in Abuja.
The MoU will support the implementation of the Alliance for a Green Revolution in Africa (AGRA)-backed project, building farmers’ resilience through innovative insurance models and financial instruments.
AGRA is a pan-African non-profit organisation that supports agricultural transformation across Africa by empowering smallholder farmers.
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Mohammed Ibrahim, NADF’s executive secretary, represented by Nasir Ingawa, general manager, partnerships and investor relations, said the partnership aligns directly with the fund’s mandate to expand agricultural lending.
“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,” he said.
Ingawa added that the introduction of index-based and pay-at-harvest insurance products would “go a long way in enhancing investor confidence”.
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He said the collaboration will focus on bundling insurance with agricultural loans, scaling credit-linked insurance for rice, soybean and maize value chains in priority states, and embedding climate-smart agriculture practices into NADF loan products.
He said it also aims to introduce digital climate advisory services and strengthen the capacity of business development service providers.
The dialogue brought together financial institutions, government agencies, insurers, anchor companies, and farmer groups to examine strategies for integrating index insurance into agricultural lending and unlocking more private-sector capital for rural producers.
The project is part of AGRA 3.0, which targets increased access to finance, stronger market linkages, innovative insurance products, and improved resilience for thousands of farmers between 2025 and 2027.
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On Tuesday, the NADF launched its blended on-lending financing partnership with Psaltry International Company Limited.
The initiative aims to empower 12,000 young women in cassava cultivation in its first phase, with a target of reaching 45,000 women by the end of the programme.
