IBLI Consortium Disburses ₦181.9m to Livestock Herders in Climate Insurance Payout

By LOVETH AZODO,  Lagos

An insurance consortium under the Index-Based Livestock Insurance programme has disbursed ₦181.9 million in claims to livestock herders across Adamawa, Bauchi and Plateau States, marking one of the most significant climate-triggered payouts to pastoral communities in Nigeria.

The consortium, led by Leadway Assurance Company Limited in collaboration with Rex Insurance Limited, NSIA Insurance Limited, AIICO Insurance Plc and the Nigerian Agricultural Insurance Corporation, presented cheques totaling ₦181,917,900 at a ceremony held in Yola, Adamawa State. The payout follows verified index-triggered losses recorded during the insured period.

The Index-Based Livestock Insurance scheme is designed to provide financial relief to herders affected by drought and other climate shocks.

Unlike traditional insurance models that rely on individual loss assessments, the programme uses objective indices, including satellite-based vegetation data, to determine when payouts are triggered. The approach is aimed at ensuring transparency, speed and efficiency, while enabling herders to purchase pasture and protect their livestock from mortality during periods of severe grazing shortages.

Leadway Assurance serves as the lead technical partner for the programme, providing expertise in product design, risk management and implementation, while working alongside co-underwriters and development partners.

The initiative is supported by Africa Reinsurance Corporation as reinsurer, the Livestock Productivity and Resilience Project, and the International Finance Corporation, a member of the World Bank Group, underscoring the role of public-private and international collaboration in agricultural risk management.

Global Head of Agriculture Risk Solutions at Leadway Assurance, Ayoola Fatona, said the payout demonstrates the impact of innovative, data-driven insurance solutions in strengthening resilience among livestock farmers.

He noted that through coordinated partnerships, the programme is enhancing herders’ ability to adapt to the effects of climate change while promoting sustainable agricultural risk management.

Stakeholders say the IBLI framework represents a growing shift toward climate-smart insurance products capable of protecting vulnerable communities and supporting food security objectives, as the consortium signals plans to expand access to agricultural insurance across Nigeria’s livestock sector.