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'''NIGERIAN AGRICULTURAL INSURANCE CORPORATION - NAIC '''

The Nigerian Agricultural Insurance Corporation (NAIC) is the executing agency of the Nigerian Agricultural Insurance Scheme (NAIS. The Scheme was established in 1987 to address the issue of risks facing farmers as a result of incidences of natural hazards such as drought, flood, pests, diseases, etc.

The Corporation was created due to the reluctance of existing insurance companies to underwrite agricultural risks because of the prohibitive premium rating and near-certainty of loss occurrence. Due to the high premium rating in agricultural insurance, the Scheme operates a regime of subsidy on some selected crops and livestock items. These crops and livestock include rice, Maize, Yam, Cassava, Sorghum, Millet, Groundnut, Irish Potato, Soya Beans, Cowpeas, Cattle, Poultry, Pig, Sheep, Goats, Rabbits, Bee-keeping, etc. Under this arrangement, the farmer pays 50% of the premium charged, while the balance of 50% is paid to the Corporation on behalf of the farmer by the Federal and the State Government (where the business is located) in the proportions of 37.5% and 12.5% respectively. In 1993, Act No. 37 of 1993 was enacted to give the Scheme legal backing. The Act also allowed the Corporation to participate in general insurance, with the approval of the Commissioner for Insurance.

OBJECTIVES OF THE SCHEME The broad objective of the Nigerian Agricultural Insurance Scheme (NAIS) is to offer protection to the farmer from the effects of natural disasters and to ensure payment of appropriate compensation sufficient to keep the farmer in business after suffering a loss. Specifically, the scheme provides financial support to insured farmers during time of loss; induces provision of credit through its insurance, for such credit; minimizes government's emergency assistance during natural disasters and generally promotes agricultural production and food security.

The Corporation operates under the supervision of the Federal Ministry of Agriculture and Rural Development - FMARD.

MANAGING DIRECOR: The Corporation is currently headed by Mrs. Folasade Joseph.

NAIC's official website - www.naic.gov.ng; FMARD's website - www.fmard.gov.ng