Rural Micro-financing and Food Insecurity in Nigeria
DOI:
https://doi.org/10.37134/firdaus.vol1.1.3.2021Keywords:
Agricultural-productivity, Food-insecurity, Innovative-financing, Micro-Financing, Micro and small-scale farmersAbstract
Background: Significantly, micro and small-scale farmers have contributed to the manufacturing output, employment and exports of Nigeria but in the area of food security they are lacking. The growing hunger in the land, worsened by the vanishing purchasing power of most Nigerians especially in the rural areas is a threat no serious government can afford to treat with indifference. However, access to timely and reliable financing at competitive rates, remains a key bottleneck in the growth of this sector for effective food security. From the foregoing, this study examined the impact of rural micro financing on food insecurity in Nigeria.
Materia3s and Methods: The study was carried out in Oyo state through survey design on a sample of 164 respondents drawn from six (6) villages and the data collected though the questionnaire and interview were used for descriptive analysis with logit and tobit regression methods of analysis.
Results: The results of the survey showed that lack of credit facilities to farmers affected their production capacities as well as production efficiency. The results also showed that farmer’s household size, collateral, land ownership, significantly determined the farmer’s accessibility to credit in the study area.
Conclusion: The study concluded that adequate credit facilities to this labour-intensive sector will ultimately increase agricultural productivity and facilitate value chain integration which will enhance employment opportunities for unskilled labour and contribute to food security and stability in Nigeria.
Recommendation: The study recommends among others the need for the Central Bank of Nigeria to introduce innovative financing mechanisms for farmers in the rural areas in order to boast food production capacity so as to avert food insecurity in Nigeria.
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