In a significant stride toward mitigating the impact of climate change on Nigeria’s livestock sector, the African Reinsurance Corporation (Africa Re), in partnership with the Livestock Productivity and Resilience Support (L-PRES) Project and a coalition of insurers and development partners, has rolled out a ground-breaking Index-Based Livestock Insurance (IBLI) pilot scheme.

The launch event, held at the Transcorp Hilton Hotel in Abuja, convened major players in agriculture, insurance, and rural development. The IBLI programme is designed to cushion pastoralists and livestock-dependent communities from climate-induced risks such as drought, pasture failure, and increased conflict over grazing land.

Climate Risks Driving Innovation in Agriculture Insurance

Temitope Akinowa, Africa Re’s Regional Director for West Africa, underscored the growing threat climate variability poses to the nation’s pastoral economy. She emphasized how climate change is accelerating resource-based clashes between farmers and herders, particularly in northern Nigeria.

“The need for adaptive tools to safeguard livestock producers has never been more urgent. This index-based insurance is not just a financial product — it’s a peacebuilding and resilience tool,” Akinowa noted.

Government Endorsement of Climate Resilience Strategies

Representing the Honourable Minister of Livestock Development, Alhaji Idi Mukhtar Maiha, Professor Eustace Iyayi affirmed that the initiative aligns with Nigeria’s broader agricultural transformation agenda. He hailed the project as a data-driven solution that will enhance food security, reduce rural poverty, and promote stability in the livestock value chain.

According to him, livestock contributes over ₦7 trillion annually to Nigeria’s economy, supporting approximately 20% of the population through direct employment, trade, and protein supply. This vital sector includes cattle, goats, sheep, poultry, and an expanding dairy industry.

How the Index-Based Livestock Insurance Works

Dalili Advisors, the technical partner for the project, explained the mechanics of the IBLI scheme. Using satellite technology, the programme tracks vegetation indices and pasture conditions. When pasture quality drops below a certain threshold, payouts are automatically triggered to the insured farmers — minimizing delay and maximizing impact.

The digital delivery platform ensures transparency and efficiency in disbursing benefits to registered livestock keepers. Participating insurers, including Leadway Assurance, AIICO, REX Insurance, NAIC, and NSIA, have committed to making the policy affordable and accessible across the pilot states.

Pilot Coverage and Implementation Timeline

The pilot phase, running from August 15, 2025, to March 30, 2026, aims to reach 20,000 livestock producers across Adamawa, Plateau, Bauchi, and Sokoto States. The long-term vision is to expand nationwide and integrate the product into Nigeria’s climate adaptation strategies.

About Africa Re

Africa Re is a pan-African reinsurance institution headquartered in Lagos and owned by 42 African countries, the African Development Bank (AfDB), over 100 African insurance companies, and three global reinsurance giants. The corporation’s mission includes deepening insurance penetration and supporting economic development across the continent.