In response to the growing challenges faced by pastoralist communities in Northern Nigeria, Africa Reinsurance Corporation (Africa Re), in partnership with the International Finance Corporation (IFC) and a consortium of stakeholders, is set to launch a pioneering pilot program for Index-Based Livestock Insurance (IBLI) product.
The launch event will take place on July 24, 2025, at the Transcorp Hilton Hotel, Abuja, bringing together key players from government, development agencies, insurance providers, and pastoralist and farming communities.
Across Northern Nigeria, pastoral livelihoods are increasingly threatened by climate change, rapid urbanization, and population growth.
These pressures have led to shrinking grazing lands and unpredictable weather patterns, making livestock farming more vulnerable to drought and resource scarcity. The resulting strain has not only impacted food security and economic stability but has also heightened tensions over land use and access to water.
To address these challenges, Africa Re and its partners conducted a comprehensive two-year feasibility study in Sokoto, Bauchi, Adamawa, and Plateau States. The study confirmed a strong link between drought conditions and disruptions in livestock management. In response, the pilot introduces an innovative insurance product: the Pasture Index-Based Livestock Insurance Product, which provides parametric cover to pastoralists and farming communities during severe droughts. This product is designed to offer financial protection, promote sustainable grazing practices, and reduce the economic impact of climate-related shocks.
The pilot will insure 20,000 livestock farmers from August 15, 2025, to March 30, 2026. Insurance policies will be distributed via L-PRESS-affiliated cluster groups, with product development technical support provided by Dalili Advisors. The program will be underwritten by a consortium of insurers, including REX Insurance, Leadway Assurance, NSIA Insurance, the Nigerian Agricultural Insurance Corporation (NAIC), and AIICO Insurance. To ensure affordability, premium subsidies of up to 70% will be provided through the InsuResilience Investment Fund (Blue Orchard).
The launch event will feature remarks from Africa Re leadership, representatives from the International Finance Corporation (IFC), the Federal Ministry of Livestock Development, and participating insurers. A technical presentation will highlight the IBLI product and its potential for scale through public-private partnerships.
Africa Re remains committed to supporting the growth of the insurance industry across Africa and promoting economic activities that safeguard livelihoods and strengthen food security.
