Browsing by Author "Adedayo Fajimi"

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    INSURANCE INTERMEDIATION AND AGRICULTURAL OUTPUT IN NIGERIA
    (Ilorin Journal of Finance, 2024) Adedayo Fajimi; Lukman Adebayo-Oke Abdulrauf
    Effective insurance intermediation is an essential financial instrument intended to reduce risks, especially in an industry like agriculture that is thought to be extremely volatile. Nigerian agricultural output is threatened by a number of risks, such as market volatility, pest infestations, and climate change, despite the efforts of the country's insurance companies. In light of this, this study looked at how insurance intermediation affected Nigerian agricultural production. Financial records from the Nigerian Agricultural Insurance Corporation and the Central Bank of Nigeria Statistical Bulletin provided time series data from 2005 to 2021. The data was analysed using Ordinary Least Square (OLS) regression as an estimation technique. According to the study, the assets of insurance companies (ICA) have no effect on crop output or fishing (coeffs. 3.16 & -4.89; p-values 0.43 & 0.90), but they have a considerable impact on agriculture, livestock, and forestry (coeffs.7.52, 1.62, and 8.67; p-values 0.00, 0.00, and 0.00). Additionally, all forms of agriculture are unaffected by Agricultural Insurance Premiums (AIP) (coeffs.1.92, 8.78, -3.92, -4.41 & 3.23; p-values 0.43, 0.78, 0.61, 0.19 & 0.80).According to the study's findings, ICA has an impact on agriculture, livestock, and forestry but no influence on crop production or fishing. Not all forms of Nigerian agriculture are impacted by AIP. According to this study, the Federal Government should establish beneficial policies for its agencies, such as the Nigerian Agricultural Insurance Corporation (NAIC), in order to encourage ICA to enhance other agricultural sub-outputs in Nigeria, such as crop production and fishing. In order to influence all agricultural varieties, which will then translate into their contributions to Nigeria's GDP, NAIC must constantly make sure that insurance premiums are reinvested in the agricultural sector.