EFFECT OF FINANCIAL INCLUSION ON FOOD SECURITY AMONG RURAL WOMEN FARMERS IN SOUTH EAST NIGERIA: A STYLED NESTED MODELLING APPROACH

Abstract

The study assesses the impact of financial inclusion on food security among rural women farmers in Southeast Nigeria. A total of 266 rural women farmers participated in the research, which relied on primary data collected through a semi-structured questionnaire. The study spanned from August 2021 to August 2023. Various statistical methods, including Ordinary Least Squares (OLS) multiple regression, binary logistic regression, and ordinal probit regression, were employed to achieve the study’s objectives. The findings reveal that 41.7% of the participants were food secure, while 58.3% were food insecure. There were significant differences in calorie consumption between the two groups, with food-secure households consuming significantly more calories than food-insecure households. The mean calorie consumption was 3,776.6 Kcal for food-secure households and 1,378 kcal for food-insecure households. In the Ordinary Least Squares multiple regression analysis, factors such as ownership of commercial bank accounts, savings within the past 12 months, farm income, and the proportion of credit utilized for its intended purpose were found to have a significant positive effect on the food security index of rural women farmers. The binary logistic regression model indicated significant associations between savings, access to professional financial advice, and credit utilization with food security levels. Similarly, the ordinal probit regression model showed that the explanatory variables jointly explained variations in food security levels, with mobile banking usage and ownership of commercial bank accounts emerging as significant factors. Overall, the study highlights the need for targeted government intervention—such as the provision of soft loans, grants, and incentives—alongside strengthened financial inclusion policies to alleviate food insecurity among rural women farmers.