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Rivers State University, Port Harcourt.
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| Title: | Agricultural Financing and the Growth of Agricultural Sector: A MultiVariant Study from Nigeria |
| Author(s): | OZUZU CSR. & ISUKUL Araniyar |
| Abstract: | This study examined the effect of agricultural financing on the growth of the agricultural sector in Nigeria. The objective is to investigate the extent to which financing affect the growth of Nigeria agricultural sector. Time series data were collected from Central Bank of Nigeria Statistical Bulletin from 1987 to 2020. Percentage of agricultural sector gross domestic product to total domestic product was used as dependent variable while percentage of commercial bank credit to agriculture and total commercial bank credit, percentage of microfinance credit to agriculture and total commercial bank credit, while percentage of agricultural credit guarantee scheme to gross domestic product and percentage agricultural development banks credit to gross domestic products were used as independent variables. Co integration test, Augmented Dickey Fuller test, granger causality test and error correction model was used to determine the short and long run relationship that exist between the dependent and the independent variable. The study found that 23.2 percent variation in the output of agricultural sector could be traced to agricultural financing. The study concludes that commercial banks credit to agricultural sector, agricultural credit guarantee scheme have positive but no significant effect on the output of Nigeria agricultural sector while agricultural development banks and microfinance credit have negative and no significant effect on the output of the agricultural sector. This study recommends that the monetary policy of the Central Bank of Nigeria should further direct commercial banks and other financial institutions to grant more credit to agricultural sector for better performance as well as strengthen various government policies aimed at revamping the agricultural sector through deposit money banks financing. Therefore there is need for better implementation of these agricultural policies to attract investment in the sector. |
| Keywords: | Agricultural Financing, Growth of Agricultural Sector, agricultural development, agricultural credit |
| Journal: | Economic and Social Science Review (ESR) |
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