IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 9 NO. 3 2023
DOI: https://doi.org/10.56201/ijssmr.v9.no3.2023.pg1.14

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Effect of Agricultural Funding on Agricultural Output in Nigeria (1990-2020)

Okidim, I. A.; Odukwo, C.C.; Chukuigwe, E.C

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Abstract

This study examined the effect of agricultural funding on agricultural growth in Nigeria spanning from 1990-2020. The specific objectives were to determine the effect of public capital expenditure on agricultural output in Nigeria, determine the effect of public recurrent expenditure on agricultural output in Nigeria, determine the effect of agricultural credit guarantee scheme on agricultural output in Nigeria, and the effect of Foreign Agricultural Grant on agricultural output in Nigeria. This study adopted the quasi-experimental research design. Secondary data were used in this study. Data used were gotten mainly from the publications of Central Bank of Nigeria (CBN) namely; Statistical Bulletin. The method adopted for analyzing is the Augmented Dickey Fuller test (ADF). Pre-estimation diagnostics tests were employed to check for stationarity of the data to prevent spurious regression analysis. From the regression result, it could be seen that only agricultural credit guaranteed scheme fund (ACGSF) was significant in influencing agricultural output in the period under study (1990-2020) as the probability values of its t-statistics were less than 5%, while public capital expenditure on agriculture (PCEXA), Foreign agricultural grant (FAG) and public recurrent expenditure on agriculture (PREXA) did not have any significant influence on agricultural output as the probability values of their t-statistics were greater than 5%. From the result, ACGSF had a positive and significant effect on agricultural output, meaning that a one-unit increase in funding to the ACGSF brought about (0.357068), this might be due to the ACGSF disbursed directly to farmers therefore its positive influence on agriculture output. On the contrary, FAG, PCEXA and PREXA had no significant effect on agricultural output within the period under study, this might be because these funds were not used for the purposes which were earmarked for. The study concluded that foreign agr

keywords:

Agricultural Funding, Agricultural Growth, Agricultural Output, Public Capital Expenditure, Public Recurrent Expenditure, Agricultural Credit Guarantee Scheme Fund, Foreign Agricultural Grant.

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References:

Adofu I., Abula M., and Agama J. E. (2012) The effects of government budgetary allocation to
agricultural output in Nigeria, Sky Journal of Agricultural Research Vol. 1(1), pp. 1 - 5,
http://www.skyjournals.org/SJAR

Akpokodje G., AND Omojimite B. U. (2008) The effect of aid flows on Nigeria’s agricultural
growth. Pakistan Journal of Social Science, 5:514-520.

Alabi, Reuben Adeolu (2014). Impact of Agricultural Foreign Aid on Agricultural Growth in
Sub-Saharan African Growth & Development Policy Modeling Consortium.

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