Green Sukuk: Investigating the Application of Green Sukuk for Accelerated Food Sufficiency in Nigeria

This research has explored the efficiency of green sukuk financing in enhancing food sufficiency in Nigeria by determining its usefulness in gathering sustainable marketing capital to finance agricultural production, agro processing and food linkage chain creation. In a completely quantitative study, secondary data of sukuk issuances, agricultural capital formation, conventional credit, macroeconomic variables and food sufficiency indicators were studied using studies of autoregressive distributed lag modelling, error correction mechanisms and Granger causality. The findings showed that Green Sukuk financing had statistically significant positive impact on food sufficiency as compared to conventional agricultural credit. In short run, food sufficiency was responsive to Green Sukuk financing in the short term and the error correction term showed the responsiveness towards the equilibrium in the long run. The findings of Granger causality test confirmed that there was a unidirectional association between financing of Green Sukuk and food sufficiency where the engineering of food system changes was initiated by Green Sukuk financing, as opposed to food system changes that might have occurred before. The results highlight the potential of Green Sukuk to offer patient, sustainability focused capital, which is climatic resilient agriculture, agro processing and healthy food supply chains. Some of the policy implications would be the encouragement of specific Green Sukuk issue, enhancement of regulatory frameworks, and facilitation of the involvement of the private sector in financing sustainable agriculture.