Establishment of the Nigerian Agricultural Insurance Corporation
Act · Agriculture
An Act establishes the Nigerian Agricultural Insurance Corporation to provide insurance against risks like natural disasters and pests for farmers. It targets crop producers, livestock farmers, and agricultural lenders. This protects them from financial losses and encourages lending to the sector.
Establishment of the Nigerian Agricultural Insurance Corporation
What Is This Policy?
The legislation that created the Nigerian Agricultural Insurance Corporation (NAIC), a government-owned entity responsible for providing insurance cover against agricultural risks to protect farmers from losses caused by natural disasters, pests, and other hazards.
Who Does It Target?
Farmers engaged in crop production Livestock producers Fisheries and aquaculture operators Agricultural lending institutions
What Does It Aim to Achieve?
Shield Nigerian farmers from catastrophic financial losses by providing affordable agricultural insurance products, and to encourage lending institutions to extend credit to the farming sector with reduced risk.
Key Features
Crop Insurance: Coverage for losses from drought, flood, fire, pests, and disease affecting major crops Livestock Insurance: Protection against death or injury of livestock from disease, accident, or natural disaster Subsidy Programme: Government subsidizes a portion of insurance premiums to keep costs affordable for smallholder farmers Claims Settlement: Defined processes for assessing and paying compensation for verified losses Credit Facilitation: Insurance coverage enables farmers to access bank loans more easily
Current Status
Rollout Stage: Ongoing operations across Nigeria Coverage: All states through zonal and state offices Lead Agency: Nigerian Agricultural Insurance Corporation (NAIC) Funding: Federal Government capitalization and premium income
How to Access
Farmers can access NAIC insurance products through the Corporation's offices and partner institutions. Visit the nearest NAIC zonal or state office Apply through participating commercial banks or agricultural lending institutions Contact local agricultural extension workers for referral
Important Terms
Premium Payments: Farmers pay a subsidized premium based on crop type, acreage, and risk zone Claims Requirements: Losses must be reported promptly and verified by NAIC assessors before compensation Eligibility: Farmers must have an insurable interest in the crops or livestock covered
Official Resources
Website: naic.gov.ng Contact: NAIC Head Office, Abuja
Legal Framework
Enacted under the legislative powers of the National Assembly as the Nigerian Agricultural Insurance Corporation (NAIC) Act (Cap N43 LFN 2004). Operates alongside the Insurance Act 2003, the National Insurance Commission (NAICOM) Act, the Agricultural Credit Guarantee Scheme Fund Act (Cap A13 LFN 2004), and the National Agricultural Policy. Aligns with FAO guidelines on agricultural insurance for food security and the AU agricultural risk management framework.