Supply-chain and Logistics Constraints as Determinants of Agricultural Risk and Insurance Uptake among Nigerian Farmers

Abstract

Agricultural insurance is promoted as a key resilience tool for smallholder farmers, yet uptake in Nigeria remains low despite long‑standing government support and the expansion of index‑based products. This State-of- the-Art review synthesizes multidisciplinary evidence to examine how supply‑chain and logistics constraints shape agricultural risk, risk perception, and insurance adoption. Findings show that poor rural roads, inadequate storage, fragmented transport systems, weak market linkages, and limited weather data infrastructure act as structural risk multipliers that elevate both actual and perceived risk. These constraints also weaken insurance performance by raising transaction costs, delaying claims verification, increasing basis risk, and eroding institutional trust. The study proposes the ‘Logistics-Risk-Insurance’ Nexus, to explain how structural, behavioral, and institutional pathways jointly influence insurance behavior. It concludes that improving uptake requires coordinated investments in rural infrastructure, data systems, and trust‑building mechanisms, supported by public–private partnerships that integrate logistics with risk‑management tools.