Agricultural Development Fund, Partners Sign MoU To Boost Climate-Resilient Agric Finance

The National Agricultural Development Fund (NADF) has signed a tripartite Memorandum of Understanding (MoU) with Leadway Assurance Company Limited and Verdure Climate to scale innovative agricultural insurance and climate-resilient finance for smallholder farmers.

The agreement , endorsed at the national dialogue on innovative agric insurance and climate finance in Abuja, is expected to support the implementation of the AGRA-backed project building farmers’ resilience through innovative insurance models and financial instruments.

NADF’s Executive-secretary, Mohammed Ibrahim, who was represented by Mr Nasir Ingawa, General-manager, partnerships and investor relations, said the partnership aligns directly with the funds 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.

He added that the introduction of Index-based and Pay-at-Harvest insurance products would go a long way in enhancing investor confidence.

The collaboration will also focus on bundling insurance with agricultural loans, scaling credit-linked insurance for rice, soyvbeans and maize value chains in priority states, and embedding climate-smart agriculture practices into NADF loan products.

It is also aimed at introducing digital climate advisory services and strengthen the capacity of business development service providers.

Leadway Assurance described the partnership as a strategic step towards improving climate preparedness in agriculture.

The company’s head of agriculture risk solutions, Fatona Ayoola Paul, praised NADF’s leadership, saying it provides “the policy anchor that initiatives like ours can build upon”.

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.