Microfinance services and membership of farmer-based organization as drivers of household food security among rice farmers in Niger and Nasarawa States, Nigeria
DOI:
https://doi.org/10.32734/injar.v8i1.18051Keywords:
farmer-based organizations, food security, microcredit, microfinance, NigeriaAbstract
Food security in Nigeria is a critical issue, with millions of farming households struggling daily. One potential solution is the provision of microfinance services and the promotion of membership in farmer-based organizations. This study examines the effect of these factors on the food security of 300 rice-farming households in Niger and Nasarawa States. Using descriptive and inferential statistics, ordered probit regression, and the household food insecurity access scale, the study reveals key findings: larger household sizes, older household heads, higher education levels, and larger farm sizes negatively affect food security. Conversely, membership of farmer-based organizations, access to microcredit and microsavings, extension services, farm income, and farming experience positively influence food security. The household food insecurity access scale (HFIAS) analysis shows that only 49% of rice-farming households in the study area are food secure. The study recommends expanding microfinance services, especially microcredit and microsavings, to improve food security among rice-farming households. Additionally, farmers should be encouraged to join farmer-based organizations to enhance their food security.
Downloads
References
Berhanu, A. Amare, B. Gurmessa, Y. Bekele, and T. Chalchisa, “Does microcredit use helps farmers win the battle against food insecurity: Evidence from Jimma zone of Southwest Ethiopia,” Agriculture and Food Security, vol. 10, no. 51, pp. 1-17, 2021. DOI: https://doi.org/10.1186/s40066-021-00323-8.
L. J. Abdul, “Poverty Action Lab (J-PAL): Microcredit impacts and limitations,” J-PAL Policy Insights, Cambridge, 2018.
Food and Agriculture Organization of the United Nations (FAO), “The state of food security and nutrition in the world. Building resilience for peace and food security,” Rome, FAO, 2017.
B. Abubakar and A.Y. Mbasua, “Effect of microfinance loans on poverty alleviation of women in Gombe metropolis,” Journal of Arts and Social Sciences, vol. 1, no.1, pp. 117-125, 2015.
W. Peng and E. M. Berry, “The concept of food security,” Encyclopedia of Food Security and Sustainability, vol. 2, pp. 1–7, 2019. DOI: 10.1016/B978-0-08-100596-5.22314-7.
K. Nwagu, “Central Bank of Nigeria intervention and food security in Nigeria,” Journal of Research in Business and Management, vol. 12, no. 2, pp. 140-150, 2024.
T. A. Ladigbolu, B. R. Olajide, I. O. Badiru, and O. T. Yekinni, “Constraints to microfinance banks’ services among rural dwellers in Oyo West Local Government Area of Oyo State, Nigeria,” Nigerian Journal of Rural Sociology, vol. 20, no. 1, pp. 49-55, 2020.
I. Yohane, “ Analysis of microfinance and its effect on household income: A case study of smallholder farmers in Chitipi EPA, Lilongwe District”, A research project proposal Faculty of Development Studies, Lilongwe University of Agriculture and Natural Resources, 2020. DOI: 10.13140/RG.2.2.29001.01120.
K. L. Swamika and A. Pushpanathan, “Effect of microfinance services on the performance of micro-entrepreneurs: a study in Pilimathalawa area,” 3rd Research Conference on Business Studies, Faculty of Business Studies, Vavuniya campus of the University of Jaffna, Sri Lanka, 268-274, 2020.
M. Esham, “Lessons for farmer based organizations (FBO) in Sri Lanka: Experiences from agricultural cooperatives (JA) in Japan,” University of Colombo Sri Lanka, 2012.
Central Bank of Nigeria, “Anchor borrowers programme guideline: A publication of the development finance department”, 2016.
H. A. Ismaila, O. E. Galadima, L. D. Simon, S. A. Aminu, and Y. Ibrahim, “An assessment of poverty among the farming households in Nassarawa Eggon Local Government Area, Nasarawa State, Nigeria,” International Journal of Agriworld, vol.2, no. 2, pp.37-44, 2021.
D. M. Srikant, E. J. Marc, and Y. Kristen, “In Microfinance, clients must come first,” Stanford Social Innovation Review, vol. 6, no. 1, pp. 38–45, 2008.
D. D. Zhiri, “Effect of Microfinance Services on Performance of Small Holder Rice Farmers in Niger State, Nigeria,” MSc Dissertation Department of Business Management, Ahmadu Bello University Business School, Zaria, 2018. https://kubanni.abu.edu.ng/items/3432678e-fb26-44cb-92dc-90878b0dcf8f.
A. T. Hambolu, N. B. Nwabufor, and A. F. Okeme, “Influence of microfinance banks on rural women’s entrepreneurial success in Oyo State,” European Journal of Business and Management Research, vol. 6, no. 3, pp. 69-76, 2021.
M. W. O. Madara, M. A. Onyango, and M.O. Nyagol, “Effects of microfinancing on performance of entrepreneurship: A study of selected counties in Western Kenya,” International Journal of Academic Research in Business and Social Sciences, vol. 10, no. 7, pp. 296–319, 2020. DOI: https://10.6007/IJARBSS/v10-i7/7417.
D. Bartecchi, “Social capital theory and its relevance to sustainable community development,” Colorado: Village Earth, 2021.
L. Bizzi, “Social capital in organizations,” International encyclopedia of the social and behavioral sciences (2nd ed.). Elseiver, pp. 181-185, 2015.
P. C. Fiorini, B. M. R. P. Seles, C. J. C. Jabbour, E. B. Mariano, A. B. L. de Sousa Jabbour, “Management theory and big data literature: From a review to a research agenda,” International Journal of Information Management, vol. 43, pp. 112-129, 2018.
R. A. Kashim, “Exploring the strategies for accessing microloans used by small and medium enterprises,” Walden Dissertations and Doctoral Studies, 2018.
National Bureau of Statistics, “ Demographic Statistics Bulletin,” 2019.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Indonesian Journal of Agricultural Research
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
