Agricultural Insurance Demand–side and Supply–side Barriers affecting Food Sustainability among Agricultural Insurance Providers in Nigeria


  • Samson Ifejionu Nwankwo
  • Sunday Stephen AJEMUNIGBOHUN


Agricultural insurance, Food sustainability, Demand barriers, Supply barriers


Boosting agricultural insurance, as a financial instrument, can assist the sustenance of agrofood
demand and supply in order to cushion farmers’ income, and ensure adequate farm
property safety in Nigeria. This study examined the demand-side and supply-side barriers
affecting food sustainability, with empirical evidence from agricultural insurance providers.
The study employed a survey approach cum multiphase sampling technique. A descriptive
statistic was adopted in the data analysis. This study contributes to knowledge with the
graphical models that explain the patronage level gained by agricultural insurers from
farmers, agricultural insurance contributory impact towards food sustainability, demandside
and supply-side barriers confronting agricultural insurance in Nigeria. While a major
barrier, from the findings, to demand for agricultural was recorded due to low awareness of
agricultural insurance products among farmers, low profitability potential was recorded for
agricultural insurers, due to low premium generation, as a supply-side effect. The study
recommended that agricultural insurers should enhance and expand their value-chain
processes in a bid to bolster farmers’ production capacities. However, the government should
expand the subsidy net for more farmers to have access. With the simplicity of insurance
contract design, agricultural underwriters will gain attraction from farmers, which will, in
turn, generate improved premium and their potential profitability.