Nigerian Journal of Banking and Financial Issues (NJBFI)

Fish Farmers’ Participatory Factors Influencing The Demand For Aquaculture Insurance: Evidence From Lagos, Nigeria

Abstract

Boosting aquaculture insurance, as a financial instrument, can assist the sustenance of aquatic food demand to cushion fish farmers’ income, and ensure adequate farm property safety in Nigeria. This study examined the participatory factors affecting aquaculture insurance and its related demand determinants, with empirical evidence drawn from fish farmers in Lagos State. The study employed a survey approach cum multiphase sampling technique. A descriptive statistic and Friedman’s rank test were adopted in the data analysis. This study contributes immensely with the tabular and graphical models that explain the both the demographic and institutional factors affecting uptake of aquaculture insurance and demand determinants for aquaculture insurance in Lagos State, Nigeria. All the demographic factors, from the findings, showed critical effects on the uptake of aquaculture insurance. Thus, findings further showed that all the institutional factors, except for access to cooperative society, affect the uptake of aquaculture insurance in Lagos State. The study recommended that aquaculture underwriters should ensure critical evaluation of all demographic and institutional factors to be sure of effective demand capacities of fish farmers in Nigeria. However, the government should expand the subsidy net for more fish farmers to have access. With the simplicity of insurance contract design, aquaculture underwriters will gain attraction from farmers, which will, in turn, generate improved premium and their potential profitability.