AGRICULTURAL FINANCING AND FOOD SECURITY OUTCOMES IN NIGERIA

Abstract

Nigeria’s persistent food insecurity remains a paradox despite substantial agricultural financing over the past decade. Between 2014 and 2024, agricultural credit through initiatives such as the Anchor Borrowers’ Programme and the Agricultural Credit Guarantee Scheme Fund rose from ?54 billion to over ?1.1 trillion (CBN, 2023). Yet, food insecurity prevalence remains above 34% of households (FAO, 2023), while the country’s food import bill averaged US$5.2 billion annually (NBS, 2023). This paper, titled Agricultural Financing and Food Security Outcomes in Nigeria (2014–2024), investigates the trends and linkages between financing flows and food security indicators. Using a descriptive trend analysis of secondary data from the Central Bank of Nigeria, the National Bureau of Statistics, FAO, and World Bank and several journal papers, six tables and corresponding graphs were developed to capture financing flows, agricultural GDP contribution, food imports, crop yields, and food security outcomes. The findings reveal a significant increase in financing but weak translation into food security improvements due to insecurity, post-harvest losses, and low mechanization. For instance, while agricultural financing grew by over 400% in nominal terms, the sector’s GDP contribution stagnated around 23-25%, and food insecurity prevalence worsened from 26% in 2014 to over 34% in 2023. The study recommends aligning financing with mechanization and climate-smart agriculture, scaling up insurance and risk management, and strengthening value chain financing to enhance productivity and reduce Nigeria’s dependence on food imports.