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

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.