Nigerian Agricultural Insurance Corporation Decree (No. 37 of 1993).

There is hereby established the Nigerian Agricultural Insurance as a body corporate. The Corporation shall be governed by a Board of Directors. The functions of the Corporation are: (a) to implement, manage and administer the Agricultural Insurance Scheme, established by section 6 of this Decree; (b) to subsidize the premiums chargeable on selected crops and livestock policies from the grants obtained from the Federal and State Governments and the Federal Capital Territory, Abuja; (c) to encourage institutional lenders to lend more for agricultural production having regard to the added security for their loans provided by the Corporation; (c) to carry on other (commercial) insurance business. The general objective of the Scheme is to protect the Nigerian farmer from the effects of natural hazards and diseases by introducing measures which shall ensure an indemnity sufficient to keep the farmer in business. The Scheme shall cover (a) such crops, livestock and other agricultural items and enterprises, as the Corporation may, from time to time, determine; (b) on a commercial basis only, farm buildings, machinery and equipment which form part of the investment on the farm; (c) such other items as the Corporation may, from time to time, deem necessary for giving effect to the objectives of the Scheme. The Corporation shall bear losses up to 200 percent of its premium income in each class of insurance covered under section 7 of this Decree and the Federal Government shall pay for all losses above 200 percent of the premium income. Risks covered are listed in section 8.