THE CONTRIBUTION OF AGRICULTURAL INSURANCE TO THE NIGERIAN ECONOMY
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The principle feature, which distinguishes agriculture from other production sectors, is its great dependence on nature which itself is beyond man’s control. The agricultural sector, as importance as it is exposed to extremely high degree of disk arising out of natural factors like weather conditions. Uncertainties, regarding the quality and quality of the crop/livestock output due to natural hazards, are one of the basic risks that are constantly faced by every farmer. But majority of farmers are subsistence in natures and are seldom able to bear such risk especially when large loss involved. The decline in the supply of products in turn creates a shortage of inputs in other sectors of the economy; thus the entire economy is open to the serious consequences of agricultural risks of which the farmers, are most direct and primary victims. Most of these events that result in these losses are beyond the control or prevention by individuals or society as a whole.
It is therefore, important that devices be employed for minimizing the adverse economic effect of these natural hazards in agriculture. Not only lives and well being of individuals but also the economic viability of the entire nation may be at state.
Agricultural insurance is therefore the most important available device for minimizing the adverse effects of natural hazards. Agricultural Insurance Scheme is a collective system or scheme for reducing economic uncertainties through the basic techniques of risk pooling whereas the frequency of the severity of crop losses of individual farmers cannot be predicted, the predictability and severity of losses frequency is substantially increased when similar exposure of large number of farmers are pooled.
However, there are measures established to increase agricultural production and from income like the Agricultural Development Project (ADP), operation feed the Nation (OFN), the Green Revolution, the Nigeria Agricultural and Co-operative Bank and various River Basin Authorities in deferred states. These measures have not been with success because of the huge losses of agricultural production caused by natural disaster/hazards which has been the major constrains in increasing food production in Nigeria economy. Agricultural insurance therefore offers production to farmers (Insured) from the effect of these natural disaster and ensure payment of appropriate compensation sufficient to keep the formers in the business after suffering a loss. It minimizes and eliminates the need for emergency assistance provided by government during the period of agricultural disaster.
Agricultural Insurance Scheme is therefore; aimed at encouraging banks to be more liberal in extending agricultural credits to farmers for increased food production since their loans are under agricultural insurance policy cover. Most importantly, the scheme includes research and development which generates innovations that reduce risks of diseases, pets and yield losses in agricultural production and give protection to farmers. It provides financial support and increases the growth of agricultural credit from lending institutions and farmers. Therefore, farmers are encouraged to ensure their farm projects with Nigerian Agricultural Insurance Corporation (NAIC), so as to have more coincidence to embark on wider ranger of Agricultural productions.
1.2 STATEMENT OF THE PROBLEM
There has been so many problems associated with Nigeria Agricultural insurance cooperation in agricultural development in Nigeria. Some of such problem includes:
1. Nigeria Agricultural insurance cooperation are not adequately covering Agricultural risk.
2. Nigeria Government is not adequately funding Nigeria Agricultural insurance cooperation.
3. Famers in the rural Areas don’t even know the existence of Nigeria Agricultural insurance cooperation.
1.3 OBJECTIVE OF THE STUDY
The aim of this research work is to examine the role of Nigeria Agricultural insurance cooperation in the development of Nigerian agricultural industry, the specific objective of the study include the following:
1. To examine why Nigeria Agricultural insurance cooperation are not adequately covering agricultural risk.
2. To examine why Nigerian government is not adequately funding Nigeria Agricultural insurance cooperation and its economic implication.
3. To know why famers in the rural area do not know about the existence of Nigeria Agricultural insurance cooperation.
1.4 RESEARCH QUESTION
1. Why is Nigeria Agricultural insurance cooperation not adequately covering agricultural risk?
2. How does poor funding of Nigeria Agricultural insurance cooperation affect Agricultural development in Nigeria?
3. What are the economic effects of none existence of Nigeria Agricultural insurance cooperation in the rural areas?
1.5 RESEARCH HYPOTHESIS
The following research hypothesis were formulated by the researcher:
Ho: poor covering of agricultural risk by Nigeria Agricultural insurance cooperation do not affect the development of Agricultural industry.
H1: poor covering of agricultural risk by Nigeria Agricultural insurance cooperation affects the development of Agricultural industry.
Ho: The poor funding of Agricultural insurance cooperation has no effect on Agricultural development in Nigeria.
H1: The poor funding of Agricultural insurance cooperation has a significant effect on Agricultural development in Nigeria.
Ho: None existence of Nigeria Agricultural insurance cooperation in the rural area do not have any economic effect.
H1: None existence of Nigeria Agricultural insurance cooperation in the rural area has significant effect on agricultural industry.
1.6 SIGNIFICANCE OF THE STUDY
This research work will be of immense help to:
The student: it will help the researcher to know more on the role of Nigeria Agricultural insurance cooperation in the development of Nigerian agricultural industry.
The Stake holders: this study will be of great importance to stake holders as it will enrich their knowledge on the various roles of NAIC to the rural dwellers.
Insurance company: this will equally be of help to the insurance companies in Nigeria because when the exact role of NAIC is identified and they carry out th
NOT THE TOPIC YOU ARE LOOKING FOR?
Once payment is made, kindly send us your project topic, email address and payment name to +234 810 144 4147
Once payment is confirmed, Project materials will be sent to your email
Public authorities and central banks around the world are closely monitoring developments in digital currencies and studying their implications for the economy, the financial system and central banks. This lack of physical form allows nearly instant...
insurance with the view to arousing the awareness of thepolicyholders and prospective ones. This will be achieved by highlighting13the insurance mechanism, discovering the weak areas that need to bestrengthened and recommendations will be proffered f...
nsurance industry. The study adopts descriptive and analytical method of historical and time series data. The study was conducted to cover the period from 1986 to 2011 (twenty-five years). The secondary data used for the study was obtained from the C...
Appreciation of the topic to be discussed will not be fully attained if a brief historical review of the steel industry is not given. In the past, developing countries, Nigeria inclusive did not have a balance of economy and they ur...
At this time, the Nigeria government is intensifying efforts to boost the country’s economy, the need to research on the fact that led to economic growth in Nigeria cannot be understated. This study will aid our understanding of economic developmen...
It is common to report of business failing than business succeeding almost always, the failure or success of a business can be attributed to its management. When a business is mismanaged, it will lead to liquidation the company will not meet their s...
Due to the high level of illiteracy in the Nigerian society, many people are unaware of insurance policies. However, with the enactment of Insurance Decree[1], the awareness of insurance policies was enhanced. Thus, more people took steps to insure t...
In Nigeria the issue of taking life assurance policy has been neglected, in the sense that at this present time, it is estimated that not up to two percent (2%) of Nigerian’s own life assurance policies, from the research made on the internet, lif...
1.4 Research Question The following are the research questions: (1) Does Enugu State Pension Board pay pension regularly? (2) Does retiree suffers after retirement because of non implementation of gratuity? (3) What ...
Globalization means the whole world is becoming a global village, the world are coming together to be one in unity, things are happening generally people don’t produce to satisfy the market people around them, but they produce for the whole market....
Message Us on WhatsApp »
