Abstract
Smallholder farmers in Southeast Nigeria face persistent financial constraints that limit agricultural productivity and exacerbate food insecurity. This study evaluates the impact of microcredit on agricultural productivity and food security among smallholder farmers in Southeast Nigeria. Specifically, it assesses microcredit’s effects on crop yields, farm income, and household food security. Employing a cross-sectional survey design, 360 households were sampled, comprising 180 microcredit beneficiaries (treated households) and 180 non-beneficiaries (comparison households), across Abia, Imo, and Anambra States. Households were identified using datasets provided by microfinance banks operating in the region, with propensity score matching applied to ensure comparability between the two groups. Data were collected on socioeconomic characteristics, crop yields, farm income, and food security metrics. Data obtained were analyzed using descriptive statistics, and inferential statistics such as Student’s T-Test and the Foster, Greer, and Thorbecke (FGT) indices to capture the multidimensional effects of microcredit. Results indicated that microcredit access significantly enhances agricultural productivity, evidenced by higher crop yields and farm incomes among beneficiary households. Furthermore, treated households exhibited markedly lower food insecurity incidence, depth, and severity compared to their counterparts. The study concludes that microcredit enhances agricultural productivity and food security by bridging financial gaps, enabling investments in productivity-enhancing technologies, and fostering economic resilience. Scaling microcredit programs alongside targeted policies and capacity-building initiatives is recommended to maximize their impact on sustainable agricultural development.