Agricultural Financing and Agricultural Output in Nigeria

Abstract

This article's goal was to investigate the connection between agricultural financing and Nigeria's agricultural production.   We replaced agricultural finance with the agricultural credit guarantee scheme fund (ACGSF), commercial bank loans to agriculture (CBLA), and government spending on agriculture (GOVXA).   Agricultural output was substituted with the agricultural GDP.   The Autoregressive Distributed Lag (ARDL) estimate technique was used to specify the ARDL model, which was created to examine the relationship between agricultural financing variables and agricultural production using quarterly data from 2009Q1 to 2023Q4.   An econometric analysis program called E-view 9.0 was utilized. The results show that while government spending on agriculture (GOVXA) and the agricultural credit guarantee scheme fund (ACGSF) have no effect on agricultural output in Nigeria, commercial bank loans to agriculture (CBLA) do.   Furthermore, the control variable, yearly rainfall, significantly raises agricultural productivity.   According to the study's findings, agricultural financing has a major impact on Nigeria's agricultural production.   This is demonstrated by the fact that commercial bank loans to agriculture (CBLA) significantly increase agricultural output.   The study's conclusions suggest that farmers who obtain program loans should be properly monitored to ensure that they are being used for agricultural objectives.   Nigeria's agriculture industry also need more loans from commercial or deposit money banks in order to boost agricultural output.

Keywords: Financial: Agricultural credit guarantees scheme fund, Agricultural financing, Agricultural output, Commercial bank loans to agriculture.