IDEAS home Printed from https://ideas.repec.org/a/ags/roaaec/308406.html

Agricultural Credit Guarantee Scheme Fund And Its Effect On Agricultural Output In Nigeria

Author

Listed:
  • REUBEN, Jonathan
  • NYAM, Christiana Mlumun
  • RUKWE, Daniel Tukura

Abstract

Research Background: Agricultural production in Nigeria experiences the challenge of inadequate funding particularly by farmers in rural areas. In an attempt to enhance farmers’ access to credit, the federal Government of Nigeria set up Agricultural Credit Guarantee Scheme Fund (ACGSF) to boost funding in the sector. But to what extent the Scheme has affected the output of agricultural sectors in the Country for the period under review is of great concern especially to policy makers in the Country. Purpose of the article: The study analysed trends and effect of Agricultural Credit Guarantee Scheme Fund (ACGSF) on farmers’ agricultural output (GDP) in Nigeria. The specific objectives of the study were to examine the trend in volume of loans guaranteed by ACGSF to farmers and determine the effect of ACGSF on agricultural output for the period under review. Methods: Secondary data were sourced from Central Bank of Nigeria bulletins, National Bureau for Statistics data base and other financial bulletins. The data were analysed using descriptive and inferential statistics. Findings and value added: The trend revealed that the supply of funds to agricultural sector from the scheme has always increased in a wobbly pattern. It was found that funds guarantee to crop-sub sector increased steadily from 1998 to 2009. The result shows that credit supplied to livestock sub-sector by ACGSF rose consistently in the period under review but initially declined from 1998-2007. The multiple determination coefficients (R2) of 0.8523was obtained and the coefficients of ACGSF on crop sector, livestock sector and fishery sector were 0.1607, 0.2320 and 0.2110 respectively. The signs were all positive and significant at 1% and 5% levels. The study concludes that ACGSF has a positive effect on agricultural output in Nigeria. Hence, it is recommended that government, agricultural agencies and allied bodies should give more preference to the scheme to boost agricultural production. Government should increase funding to the scheme in order to diversify the earnings to eliminate her dependency on oil export.

Suggested Citation

  • REUBEN, Jonathan & NYAM, Christiana Mlumun & RUKWE, Daniel Tukura, . "Agricultural Credit Guarantee Scheme Fund And Its Effect On Agricultural Output In Nigeria," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 23(2).
    • Handle: RePEc:ags:roaaec:308406
    DOI: 10.22004/ag.econ.308406
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/308406/files/RAAE_2_2020_Reuben_et_al.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.308406?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:iwt:bosers:h032821 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Patwary, Md. Sazzad Hossain & Islam, Md. Shahidul & Mosharrafa, Rana Al, . "Effect of bank credit on agricultural gross domestic product," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(01).
    2. Shaibu, Ufedo Monday & Umeh, Joseph Chinedu & Abu, Godwin Anjeinu & Abu, Orefi, . "Nexus of Agricultural Credit and Sustainable Food Production in Nigeria: Application of A Modified Regression Model," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 10(3).
    3. Akpan, Sunday B. & Udoh, Edet J. & Nkanta, Veronica S., 2023. "Agricultural Credit Policy and Livestock Development in Nigeria," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 23(3), September.
    4. Sulaimon, Mubaraq, 2021. "Agricultural credit guarantee scheme fund (ACGSF) and agricultural performance in Nigeria: A threshold regression analysis," MPRA Paper 105564, University Library of Munich, Germany.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:roaaec:308406. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/feuagsk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.