European Journal of Accounting, Finance and Investment

Agricultural Financing And Food Production In Nigeria

Briggs David T.

Institute of International Trade and Development, University of Port Harcourt, Nigeria

Keywords: Agricultural financing, Funding, Food production, Loan, Sustainable

Abstract

This paper examined the impact of agricultural financing on food production in Nigeria from 1981-2019. The study was motivated by supporting Goal number 2 of the 2030 Sustainable Development Goals (SDGs) which aims to “end hunger, achieve food security, improve nutrition, and promote sustainable agriculture”. Using annual data sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin, the unit root test and dynamic ordinary least square (DOLS) approaches were employed as the techniques of analysis. The findings revealed that agricultural financing is statistically significant in explaining the level of food production in Nigeria. Thus, a percentage increase in agricultural financing (farmers' access to agricultural finance) is associated with an increase in food production by 0.654percent. As a result of this, the paper conclude that, more agricultural funding at low-interest rates motivates farmers to secure high-yield seedlings. Therefore, the study recommended amongst others that, more funding be allocated to the agrarian sector with less stringent credit conditions.