An Evaluation of the Performance of Nigeria Agricultural Insurance Scheme in Kogi State, Nigeria

Main Article Content

S. J. Ibitoye
O. J. Saliu

Abstract

The study evaluated the performance of Nigeria Agricultural Insurance Scheme in Kogi State, Nigeria. A multi-stage random sampling technique was used to select 300 insured farmers. Primary and secondary data were used for the study. Data obtained were subjected to statistical analysis using both descriptive and inferential statistical tools. The services provided by the scheme include; subsidized livestock, subsidized crops, commercial livestock, commercial crops, multiple cover, motor liability, fire, and special peril, general accident, engineering and bonds, and special risks. However, the study showed that insured farmers in the state were only engaged in subsidized crops (94.7%), subsidized livestock (44.3%), multiple covers (17.7%), and commercial crops (1.7%). The findings further showed that 92.7% of the insured farmers used the scheme occasionally. Commercial banks (99.3%) and cooperative societies (92%) were the major sources of information on agricultural insurance among the insured farmers. The study showed an improvement in the income of insured farmers after the scheme, though the marginal increase was not significant. Conclusively, the insurance scheme has not brought about the desired increase in farmers’ income.

Keywords:
Agricultural Insurance, farmers, improvement, risk

Article Details

How to Cite
Ibitoye, S. J., & Saliu, O. J. (2019). An Evaluation of the Performance of Nigeria Agricultural Insurance Scheme in Kogi State, Nigeria. Asian Journal of Agricultural Extension, Economics & Sociology, 33(2), 1-9. https://doi.org/10.9734/ajaees/2019/v33i230174
Section
Original Research Article

References

Ugwu DS, Kanu IO. Effects of agricultural reforms on the agricultural sector in Nigeria. Journal of African Studies and Development. 2012;4(2):51–59.

Aina OS, Omonona BT. Nigeria agricultural insurance scheme (NAIS): Prospect, achievement and problems. Global Advanced Research Journal of Agricultural Science. 2012;1(5):097-103.

Gupta PK. Fundamentals of insurance. India, Himalaya Publishing House; 2008.

Ahmed DA. Agricultural insurance and food security. Agribusiness Today. 2005;1(6):6.

Saliu OJ, Adejoh SO, Ekele FO. Agricultural insurance patronage among rural farmers in Ofu Local Government Area of Kogi State. Centre for Research and Development, Federal University of Technology, Akure. 2010;1(1):65.

National Population Commission (NPC). The population census. Official Gazette. Abuja. 2007;94(24).

Ibitoye SJ. Influence of farm size, educational status and farm income on the adoption of maize varieties in Kogi State, Nigeria. American-Eurasian Journal of Sustainable Agriculture. 2010;4(1):20–25.

Shaibu UM, Ibitoye SJ, Ibrahim MK. Impact of Nigeria agricultural insurance scheme on farmers’ Welfare; A propensity score matching approach. NSUK Journal of Science and Technology. 2016;6(1):64–69.

Adefarasin GB. The impact of SPCE agricultural extension programme on farmer in oil producing area of delta state, (M.Sc. Thesis University of Ibadan); 2000.

Kuponiyi FA, Ogunwale AB, Oladosu IO. Involvement of private organizations in agricultural extension delivery in south-western Nigeria. 2003;45–94.

Ibitoye SJ, Shaibu UM, Omole B. Analysis of resource use efficiency in tomato (Solanum lycopersicum) production in Kogi State. Asian Journal of Agricultural Extension, Economics & Sociology. 2016;6(4):220-229.

Ibitoye SJ, Omojola D, Omojeso VB, Shaibu MU. Assessment of informal credit in mobilizing funds for agricultural producion in Ijumu Local Government Area of Kogi State, Nigeria. Asian Journal of Agricultural Extension, Economics and Sociology. 2015;7(1):1-8.

[Article no.AJAEES.18266]

[ISSN: 2320-7027]

Okwoche VA, Asogwa BC, Obinne CP. Evaluation of the impact of agricultural insurance on the performance of peasant farmers in Benue State of Nigeria. American Journal of Scientific Research. 2012;60(2012):94-103.

Bamire AS, Fabiyi YL, Manyong VM. Adoption pattern of fertilizer technology among farmers in the ecological zones of south-western Nigeria: A Tobit analysis. Austr. J. Agric. Res. 2002;53:901-910.

World Bank. Managing agricultural production risks: Innovations in developing countries; 2005.

Tologbonse JO, Arokoyo AA, Obiniyi AA, Ojo JAS. The response of farmers to agricultural insurance in Kogi State, Nigeria. Proceedings of the 2nd Annual National Conference of the Agricultural Extension Society of Nigeria AESON). University of Ibadan. 1995;27-32.

Nwosu FO, Oguoma NNO, Lemchi JI, Ben–Chendo GO, Henri-Ukoha A, Onyeagocha SUO, Ibeawuchi II. Output performance of food-crop farmers under the Nigerian Agricultural Insurance Scheme in Imo State, South East, Nigeria. Academia Arena. 2010; 2(6):43-47.

Arene CJ, Tee DM. Agricultural insurance in Humid Nigeria: An analysis of the performance of the livestock subsector. Revista di Agricultura Tropicale e subtropicale. 1996;90(2):165-176.