AGRICULTURE FINANCING AND FOOD SECURITY IN NIGERIA

Abstract

This study examined the impact of public agriculture financing on food security in Nigeria spanning the period of 1981 to 2020. The data for the study were analyzed using the Autoregressive Distributed Lag (ARDL) model. The study used calorie supply per capita as the dependent variable, while the Agricultural Credit Guarantee Scheme Fund, bank credit to the agricultural sector and interest rate were the independent variables. Findings from the study revealed that agriculture financing has a positive impact on food security in Nigeria, with the Agricultural Credit Guarantee Scheme Fund and bank credit to the agricultural sector having positive coefficients in the long-run and in the short-run. The result also shows that interest rate has a negative impact on food security in the long-run and in the short-run. Based on the findings of the study, it recommends that credit facilities through the Agricultural Credit Guarantee Scheme Fund and bank credit should be made available to farmers in order to enhance food security in Nigeria. Equally, the study also recommended that while encouraging farmers to take agricultural credit, the cost of credit to the agricultural sector should be reduced to encourage more farm investment.