As droughts intensify and grazing land becomes scarcer, tensions between farmers and pastoralists in Northern Nigeria have continued to rise. But a new approach to insurance could help ease these pressures and offer a path toward more peaceful, climate-resilient communities.

On July 24, 2025, stakeholders from across the public and private sectors gathered in Abuja, Nigeria for the launch of two innovative insurance products designed to respond to the unique challenges faced by farmers and herders. The event, hosted by Africa Re, marked a key milestone in the Nigeria Inclusive Insurance Project, part of the wider IFC Africa Inclusive Insurance Program supported by GIIF.

Nigeria launches two innovative, data-driven livestock insurance policies to bring climate-smart protection to over 20,000 farmers in a pilot across four northern states—reducing conflict and strengthening peaceful, resilient rural communities.

The event brought together a wide network of stakeholders across government, development institutions, the insurance industry, and farmer and pastoralist associations. Key partners in this initiative include the International Finance Corporation (IFC), Africa Re, the World Bank’s Livestock Productivity and Resilience Support Project (L-PRES), Dalili Advisors, InsuResilience Investment Fund (BlueOrchard), Airtel, and local insurers.

The newly launched products – Index-Based Livestock Insurance* and Animal Encroachment Insurance** – were developed through a two-year feasibility study conducted by IFC, Africa Re, and Dalili in the Sokoto, Bauchi, Adamawa, and Plateau states of northern Nigeria. The study established a clear link between drought-related conditions and rising tensions over land and water resources, which often lead to encroachment and conflict. These products were designed as practical, data-driven solutions to help protect the livelihoods of both herders and farmers in affected regions.

(*)Index-Based Livestock Insurance provides pastoralists with financial support during extreme droughts, helping them buy extra feed and keep their livestock healthy and reducing the need to travel long distances in search of grazing land.

(**)Animal Encroachment Insurance offers farmers protection when livestock wander onto croplands due to resource scarcity, helping ease tensions and prevent loss of income.

Among the speakers at the event were Adeoye Wasiu, Technical Focal Point for the World Bank’s L-PRES project, and Isaac Magina, Manager for Agriculture Underwriting and Marketing at Africa Re. They spoke about the importance of livestock insurance as a tool for resilience, peaceful coexistence, and climate adaptation, and emphasized the value of collaboration across public and private sectors to bring innovative solutions to scale.

Photo: Adeoye Wasiu, Technical Focal Point for the World Bank’s L-PRES project, speaks on stage.

The pilot phase, running from August 2025 to March 2026, will reach 20,000 livestock farmers across the four target states. Farmers will be enrolled through community-based groups supported by L-PRES, with Dalili Advisors offering technical guidance throughout the rollout.

As climate risks continue to intensify, these new insurance solutions offer a timely and inclusive approach to protecting vulnerable communities, strengthening rural economies, and building long-term resilience in Nigeria’s agriculture sector.

Top Photo Credit From Left to Right:  Mr Isaac Magina- Manager, Agriculture Underwriting and Marketing, West Africa Regional office, Africa Re; Mrs Temitope Akinowa- Regional Director, West Africa office, Africa Re; Mr. Olugbenga Anjorin- Underwriting officer, West Africa Regional office, Africa Re.