PUBLIC AGRICULTURAL EXPENDITURE AS A DRIVER OF SUSTAINABLE FOOD SUPPLY IN NIGERIA
Keywords:
Agricultural Expenditure, food supply, and public farmers’ insurance expenditureAbstract
Public agricultural expenditure is critical to food security through its influence on food supply. In Nigeria, a country where agriculture is a key sector, understanding the relationship between government spending and food availability is essential to addressing hunger and malnutrition. This study evaluates the impact of Public Agricultural Expenditure on Sustainable Food Supply in Nigeria from 2003 to 2023, using an agent-based modeling approach grounded in the Cobb-Douglas production function. The findings reveal a positive but statistically insignificant relationship between recurrent expenditure (REX) and food supply, with a coefficient of 0.037260 and a t-statistic of 0.203983, below the critical value (2.07) at the 5% significance level. Conversely, capital expenditure (CEX) has a significant positive impact, with a coefficient of 0.263123, a t-statistic of 4.975569, and a probability value of 0.0028. Farmers’ Insurance Expenditure (FIE), however, shows a negative but statistically insignificant relationship with food supply, with a coefficient of -0.063527 and a t-statistic of -0.871761. Capital expenditure enhances food supply and underscores the need to reassess the policy role of Farmers’ Insurance Expenditure
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