Credit constraints and food insecurity: A study of smallholder farmers in Southwest Nigeria

Access to credit plays a critical role in improving agricultural productivity and household welfare, yet many smallholder farmers in Nigeria remain credit constrained. This study examines the effect of credit constraints on household food insecurity and coping strategies among smallholder farming households in Southwest Nigeria. Primary data were collected from 240 farming households using a structured questionnaire. Household food security status was assessed using the Foster–Greer–Thorbecke (FGT) index, while a logit regression model was employed to identify the determinants of food security. The results show that 56% of the sampled households were food insecure, indicating a high prevalence of food insecurity among smallholder farmers. Income and landholding size had positive and significant effects on food security, while household size negatively influenced food security. Male-headed households were more likely to be food secure than female-headed households. Credit constraints were strongly associated with higher levels of food insecurity, and severely constrained households relied more on adverse coping strategies such as skipping meals and reducing food intake. The study concludes that credit constraints significantly worsen food insecurity among smallholder farmers. Policies that promote inclusive rural finance, secure land access, and strengthen farmer organizations are essential for improving food security and reducing vulnerability in rural Nigeria.