Section 6: Establishment of the Agricultural Insurance Scheme, etc.

(1) There is hereby established a scheme to be known as the Agricultural Insurance Scheme (in this Act referred to as "the Scheme").
(2) The general objective of the Scheme is to protect the Nigerian farmer from the effects of natural hazards by introducing measures which shall ensure an indemnity sufficient to keep the farmer in business, but specifically the objectives of the Scheme are to
(a) provide financial support to farmers where loss to crops or livestock arises from natural hazards;
(b) induce the provision of credit by financial institutions to farmers;
(c) promote agricultural production; and
(d)
minimize or eliminate the need for Government to provide ad hoc assistance to farmers during agricultural disasters.