THE CONTRIBUTION OF AGRICULTURAL INSURANCE TO THE NIGERIAN ECONOMY
ABSTRACT
The important agricultural sector is under very high stress from natural factors such as weather conditions. Uncertainty about the quality and quality of crop/animal production due to natural disasters is one of the fundamental risks to which all farmers are constantly exposed. However, most farmers live by their nature and rarely tolerate such risks, especially when they involve large losses.Information for research is collected using primary and secondary data collection methods. Collected. Questionnaires, personal observations, and oral interviews were used for primary data collection, and existing literature relevant to the topic was used for secondary data. Researchers analyzed the data using a chi-square statistical model. At the end of the investigative work, the investigator will learn:
Agricultural insurance schemes help farmers easily obtain agricultural loans from financial institutions by using insurance policies that banks accept as sufficient collateral from farmers. Based on the results, researchers made the following recommendations:
The government provided adequate housing for the NAIC, which runs the program. As the scheme is established and is 100% owned by the federal government, which is important for Nigerian farmers, the government has assisted in providing accommodation to the office, and in particular the Nigerian Agriculture Insurance Corporation has contributed to the scheme. We need to help publicize support. at the base. This allows farmers to borrow and invest in agriculture without fear of uncertainty. Before a farmer is eligible for a loan from an agricultural bank/commercial bank, the bank must require a minimum amount of savings to qualify for a certain amount of loan. policy:
Banks need to be familiar with the modalities of the program in order to educate their local branch borrowers on how the program works.
table of contents
title page
Approval page ii
Devotion III
confirmationiv
Summary of
chapter One
1.0 Introduction
1.1 Research Background 1
1.2 Problem 5
1.3 Objectives of the study 5
1.4 Research Question 6
1.5 Research hypothesis
chapter One
Foreword
1.1 Research background
A major feature that distinguishes agriculture from other sectors of production is its great reliance on nature beyond human control. The critical agricultural sector is under very high stress from natural factors such as weather conditions. Uncertainty about the quality and quality of crop/animal production due to natural disasters is one of the fundamental risks to which all farmers are constantly exposed. However, most farmers live by their nature and rarely bear such risks, especially when they involve large losses.A reduction in the product range leads to a shortage of inputs in other sectors of the economy. increase. The entire economy is therefore exposed to the severe consequences of agricultural risks, of which farmers are the most direct and important victims. Most of the events leading to these losses are beyond the control or prevention of individuals or society as a whole.
It is therefore important to deploy equipment to minimize the negative economic impacts of these natural disasters in agriculture. Not only the lives and well-being of individuals, but also the economic survival of entire nations can be at stake.
Agriculture insurance is therefore the most important tool available to minimize the negative impacts of natural disasters. Agricultural insurance schemes are collective schemes or schemes that reduce economic uncertainty through basic techniques of risk pooling, but the frequency of crop loss severity for individual farmers is unpredictable, but the frequency of loss is not predictable. The predictability and severity of similar exposures across a large number of farms are summarized. However, the Agricultural Development Project (ADP), Operation Feed the Nation (OFN), the Green Revolution, the Nigerian Agricultural Cooperative Bank, and various deferred state river basin agencies have all been implemented to increase agricultural production and income. I have a policy. These measures have not been successful due to the huge losses in agricultural production caused by natural disasters/disasters which are the main obstacles to increased food production in the Nigerian economy. It provides a farmer (insured) production against the effects of a disaster and guarantees payment of compensation sufficient enough to keep the business going after the original farmer has suffered a loss. This minimizes and eliminates the need for emergency government assistance during agricultural disasters.
Therefore, the agricultural insurance scheme is: The loans are backed by agricultural insurance and are therefore intended to encourage banks to lend more generously to farmers for increased food production. Most importantly, the program includes R&D that creates innovations that reduce the risk of disease, pets and yield loss in agricultural production and provide protection for farmers. Provide financial assistance and facilitate the growth of agricultural lending from lending institutions and farmers. Farmers are therefore encouraged to insure their agricultural projects with the Nigerian Agriculture Insurance Corporation (NAIC) to increase their opportunities to engage in wider agricultural production.
1.2 Problem Description
There have been numerous issues related to Nigeria’s agricultural insurance cooperation on agricultural development in Nigeria. These issues include:
1. The Nigerian Agriculture Insurance Cooperative does not adequately cover agricultural risks.
2. The Nigerian government does not provide sufficient funding to the Nigerian Agriculture Insurance Cooperative.
3. Rural farmers don’t even know there is a Nigerian Farmer’s Insurance Society.
1.3 Purpose of the survey
The purpose of this study is to investigate the role of Nigerian Agricultural Insurance Cooperatives in the development of agribusiness in Nigeria. Specific objectives of this study include:
1. To investigate why Nigeria’s cooperation in agricultural insurance does not adequately cover agricultural risks.
2. To examine why the Nigerian government has not provided adequate funding to the Nigerian Agricultural Insurance Cooperative and its economic implications.
3. Find out why rural farmers are unaware of the existence of the Nigerian Farmers Insurance Association.
1.4 Research question
1. Why is the Nigerian Agriculture Insurance Cooperative not adequately covering agricultural risks?
2. How will poor financing of cooperation in Nigeria’s agricultural insurance affect Nigeria’s agricultural development? 3. What are the economic implications of the non-existence of Nigeria’s agricultural insurance cooperation in rural areas?
1.5 Research hypothesis
The researchers made the following research hypothesis:
Ho:
Inadequate coverage of agricultural risks by Nigeria Farm insurance cooperatives have no impact on the development of agribusiness.
H1:
Inadequate coverage of agricultural risks by Nigeria Agricultural insurance cooperation affects the development of the agricultural industry.
Ho:
The lack of funding for agricultural insurance cooperatives has had no impact on Nigeria’s agricultural development. H1:
Lack of funding for agricultural insurance cooperation has had a major impact on Nigeria’s agricultural development.
Ho:
No Nigeria Agricultural insurance cooperatives in rural areas are economically ineffective.
H1:
The presence of agricultural insurance cooperatives in rural Nigeria has a significant impact on agribusiness.
1.6 Importance of research
This survey is very useful for:
student:
It helps researchers learn more about the role of the Nigerian Agricultural Insurance Cooperative in the development of agribusiness in Nigeria.
Shareholder:
This research is of great interest to stakeholders as it will enhance our knowledge of the diverse roles of her NAIC for rural residents. Insurance company:
The NAIC’s exact role will be identified and this will also help Nigerian insurers when they do.
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