THE IMPACT OF AGRICULTURE FUNDING ON FOOD PRODUCTION IN NIGERIA

This study investigates the impact of agricultural funding on food production in Nigeria from 1990 to 2022, focusing on key variables including agricultural machinery, deposit money banks' loan to the agricultural sector, federal government's annual agriculture expenditure, and agricultural credit guarantee scheme. Using Ordinary Least Squares (OLS) regression analysis, the study provides valuable insights into the relationship between these factors and food production outcomes. The results reveal a significant positive influence of agricultural machinery on food production, highlighting the importance of mechanization in enhancing agricultural productivity. Additionally, higher government expenditure on agriculture is found to positively influence food production levels. However, the relationship between bank loans to the agricultural sector and food production is inconclusive, warranting further investigation. The presence of an agricultural credit guarantee scheme shows a significant but unexpected negative impact on food production, calling for deeper exploration. Based on these findings, policy recommendations are proposed, including prioritizing investments in agricultural machinery, increasing government expenditure on agriculture, and revamping
agricultural credit schemes. These measures aim to enhance agricultural productivity, ensure food security, and contribute to sustainable economic development in Nigeria.