IMPACT OF CLIMATE CHANGE AND CAPITAL FORMATION ON FOOD SECURITY IN NIGERIA
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Abstract
The study examined the impact of climate change and capital formation on food security in Nigeria using annual time series data from 1990-2022. Secondary data were extracted from the databases of Food and Agricultural Organization (FAO) and World Bank (WDI). The food production index (FPI) was used as the dependent variable, while the independent variables include, CO2 emissions and gross fixed capital formation (GFCF), made up the main explanatory variables. Annual population growth (POP), Gross Domestic Product (GDP), and consumer price index (CPI) were used as control variables. The Autoregressive Distributed Lag (ARDL) Model Approach was used for the analysis. The findings showed a negative and statistically significant effect between climate change and food security in Nigeria both in the long-run and short-run. Moreover, the study established a positive and statistically significant effect between capital formation and food security both in the long run and short run. The study also revealed negative and significant interaction effect of climate change and capital formation on food security in the long-run. This implies that negative CO2 emissions counteract the positivity of gross fixed capital formation. The study thus, recommends climate-smart resilience policies that are beneficial to crops production and promoting storage facilities. Emphasis should also be placed on investment in tools and machineries, provision of improved seed variety processing units and facilitation of climate change adaptation strategies
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