AGRICULTURAL FINANCING AND SUSTAINABLE DEVELOPMENT TOWARDS FOOD SECURITY IN NIGERIA

Abstract

The study of agricultural financing and sustainable development toward food security in
Nigeria examined the effect of deposit money bank loans, and government expenditure on
agriculture, international donor funding, and Central Bank of Nigeria (CBN) funding on
agricultural financing for sustainable development toward food security in Nigeria.
Employing a descriptive and correlational research design, a sample of 25 years was taken.
Secondary data obtained from the CBN was analyzed using ordinary least squares
method. The study observed that there is a significant relationship between agricultural
financing through deposit money bank loans, international donor funds and sustainable
development toward food security in Nigeria. While CBN  and government expenditure
funds were found to have insignificant relationships with sustainable development toward
food security in Nigeria. The study, therefore, recommended that the government and CBN
should ensure the effective and efficient utilization of funds released to the agricultural sector
and all areas of waste should be blocked. International donor funds to farmers have been
effective in contributing to food security and should be sustained, while deposit money banks
should reduce the interest rate on loans, which discourages borrowing. The CBN, as a
regulatory body should regulate high interest rates by depositing money banks as such.
rates often stifle the survival of the agricultural sector and food security.