Agricultural Financing and Food Security in Nigeria: An Empirical Assessment 1996-2019

Abstract

This paper seeks to examine the effect of agric financing on agric productivity in Nigeria for the period 1996 to 2019 and its implications for national food security.   Multiple linear regression model was developed in order to unearth the nature of relationship between the model parameters in the period under review. Agric GDP was used as a proxy for agricultural productivity while agric credit guarantee, government expenditure on agriculture and Commercial banks' credit to agricultural sector served as proxies for agricultural financing. Results show overwhelming evidence that all the regressors have a positive and highly significant effect on agricultural productivity. Consequent upon on the findings of this study, it was recommended that the government should come up with policies aimed at incentivizing private investors and deposit money banks to advance the much-needed credit for the agric sector since government cannot do it all. All these and more if well implemented, will make our dear country Nigeria to achieve the much need food security.

The study is also of the opinion that diligent and painstaking approach should be adopted in the process of implementing such policies so that funds meant for agric sector does not end up in the hands of middlemen who camouflage as the real farmer.