Research on World Agricultural Economy

Infrastructure and Sustainable Food Production in Nigeria: An Empirical Study of the FAO Methodology and Keynesian Theory on Government Spending

Ufedo Monday SHAIBU

University of Ghana

Mohammed Kebiru Ibrahim

Department of Agricultural Economics and Extension

Fuminiyi P. Oyawole

Department of Agricultural Economics and Agribusiness, University of Ghana, Legon G4‑489, 4642 Accra, Ghana; Department of Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta 111101, Nigeria

Suweidu Abdulai

Department of Agricultural Economics and Agribusiness, University of Ghana, Legon G4‑489, 4642 Accra, Ghana

Oluwafunke D. Komolafe

Department of Agricultural Economics and Agribusiness, University of Ghana, Legon G4‑489, 4642 Accra, Ghana; Department of Agricultural Extension and Rural Development, Lagos State University, Lagos 102101, Nigeria

Felix O. Oyibo

Department of Agricultural Economics and Extension, Prince Abubakar Audu University, Anyigba 272102, Nigeria

Joseph Chinedu Umeh

  Federal University of Agriculture, Makurdi, Nigeria

Akwasi Mensah-Bonsu

University of Ghana, Legon-Accra

DOI: https://doi.org/10.36956/rwae.v6i2.1384

Received: 12 October 2024; Published: 23 April 2025

Abstract

In a 2016 methodology working document, the Food and Agriculture Organization (FAO) proposed agriculture-specific and agriculture-supportive government expenditures. This study adopted some of the proposed categories of government spending to establish the effects of infrastructure on food security in Nigeria. Time series (1960–2020) on relevant variables were sourced from the WDI database provided by the World Bank, and the Food and Agriculture Organization Statistics (FAOSTAT). Data analysis was based on descriptive statistics and the Dynamic Ordinary Least Squares (DOLS). The included series satisfied the major conditions for applying the DOLS model. Agricultural output (AGO), per capita income (PCI), and per capita food production (PCF) were used as indicators of food security. The models’ tests conducted have P-values greater than 5 per cent, which shows that the models were fit. The result shows that investment in agriculture (β = 0.0995), transportation (β = 0.1067), health (β = 0.3407), and education (β = -0.3877) significantly influenced agricultural output at the 5 per cent level of significance, while investment in agriculture (β = 0.1079), health (β = 0.2868), and education (β = -0.2671) significantly influenced per capita food expenditure at 1 per cent. This study contributes to the existing body of knowledge as it empirically confirms an improvement to Keynesian theory in that there is a direction in which public spending can impact food security. Emphasis should be on agriculture-related infrastructure or farmers’ livelihoods, otherwise, the government’s efforts on public spending may not positively impact food security. The study recommends a proper and efficient policy mix for providing agriculture-related infrastructure.

Keywords: FAO Methodology; Infrastructures; Keynesian; SDG; Food Security; Sustainable Food Production

References