The role of Nigerian Agricultural Insurance Corporation towards the development of rural finance in Nigeria

Abstract

The low or minimal credit delivery to farmers over the years for agricultural purposes by financial institutions has necessitated the need for the establishment of Nigerian Agricultural Insurance Corporation (NAIC). The agency aims to mitigate the risks associated with agricultural financing and to increase access to credits and other financial services to rural people. This paper, therefore, examines the role of Nigerian Agricultural Insurance Corporation (NAIC) in promoting rural finance in Nigeria. The study adopts literature review approach which consist of empirical, theoretical and conceptual literatures to establish the role of NAIC services in promoting rural finance. The result of the analysis revealed that NAIC contributes significantly in the Nigerian economy through the provision of subsidized agricultural insurance services to the Nigerian farmers. The study recommends that the NAIC should introduce various intervention programmes that will ease farmers access for agricultural credits and prompt payments of the insurance claims. This by supporting the Nigerian farmers towards ensuring sustainable food production increase in the Nigerian economy.