Agricultural Credit, Female Participation in Agriculture and Food Security: An FMOLS Examination in Nigeria

Abstract

Using the Fully Modified Ordinary Least Squares (FMOLS) method, this study investigated the impact of agricultural credit and female participation in agriculture on food security in Nigeria from 1998 to 2023. The specific objectives were to determine the relationship between agricultural credit, female participation in agriculture, and food security outcomes, measured by the Prevalence of Undernourishment (PU) and the Food Production Index (FPI). The study employed secondary data obtained from the World Development Indicators (WDI), FAO, and Central Bank of Nigeria (CBN) statistical bulletins. The dependent variables were Prevalence of Undernourishment and Food Production Index, while the independent variables included Agricultural Credit (AGC), Female Participation in Agriculture (FPA), Arable Land (ARL), Female Education (FEDU), and the Agricultural Credit Guarantee Scheme Fund (ACGSF). The FMOLS regression results showed that agricultural credit and female participation have a significant and positive impact on food production, and a negative impact on undernourishment in Nigeria. The study concludes that enhancing access to agricultural credit and improving female participation are essential strategies for reducing hunger and achieving SDG 2 in Nigeria. It recommends targeted policies that support rural credit delivery and gender inclusive agricultural programs.