Can Agricultural Financing Enhance Food Security? Evidence from Cross River State Rice Programme (2015-2023)
Abstract
Agricultural financing has become an indispensable component of agricultural development and food security, particularly in developing countries where limited access to financial resources constrains farm productivity. Despite Nigeria's vast agricultural potential, food insecurity remains pervasive due to inadequate funding, weak institutional support, and poor access to agricultural credit. This study examined whether agricultural financing enhances food security using evidence from the Cross River State Rice Programme between 2015 and 2025. Specifically, the study explored stakeholders' perceptions of the influence of agricultural financing on food availability, affordability, and stability, and assessed the extent to which access to agricultural credit has enhanced rice production. The study was anchored on Agricultural Development Theory, which emphasizes the role of finance as a catalyst for agricultural transformation and food security. A qualitative case study design was adopted. Data were collected through Key Informant Interviews, Focus Group Discussions, and documentary sources involving officials of agricultural agencies, cooperative leaders, rice farmers, processors, marketers, and consumers. Data were analysed using thematic content analysis. Findings revealed that agricultural financing contributed to increased rice production, improved food availability, enhanced household access to food through higher incomes, strengthened food stability, and promoted cooperative participation. Access to agricultural credit was also found to facilitate farm expansion, technology adoption, and increased productivity. However, challenges such as delayed fund disbursement, bureaucratic bottlenecks, inadequate loan amounts, and limited access to credit constrained programme effectiveness. The study concludes that agricultural financing remains a critical driver of food security and recommends expanding access to affordable agricultural credit, strengthening cooperative institutions, and improving the efficiency of financing delivery mechanisms.