IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 8 NO. 3 2022

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Agricultural Financing and Agricultural Output in Nigeria

Okore Amah Okore, PhD. Anthony Odinakachukwu Nwadiubu, PhD

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Abstract

This study examined the impact of agricultural financing on agricultural output. Data were collected from the Central Bank of Nigeria Statistical Bulletin. The period of study covered 1986 to 2020. Agricultural financing was proxied by commercial bank loan to agriculture and the disbursement of the Agricultural Credit Guarantee Scheme Fund. Agricultural output was proxied by the contribution of agriculture to overall GDP. Trend analysis and the Ordinary Least Square (OLS) Method were used in the data analysis. Evidence from the regression results shows that commercial bank loan to agriculture and the disbursement of the Agricultural Credit Guarantee Scheme Fund had positive and significant impact on agricultural output. Therefore, the study concluded that increase in agricultural financing increases agricultural output and vice versa. The study thus recommended that the government should make policies that will enhance agricultural production through increase in agricultural credit guarantee scheme fund, commercial bank loan to agriculture and ensure an all inclusive agricultural financing policy to the benefit of the poor rural farmers.

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