IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025issue-15p965-971.html

Agricultural Financing Mix and Poverty Reduction in Nigeria

Author

Listed:
  • Oluwafemi, Kayode

    (Institute of International Trade and Development, Department of Economics, University of Port Harcourt)

  • Ijeoma Emele Kalu

    (Institute of International Trade and Development, Department of Economics, University of Port Harcourt)

  • Sylvester Udeorah

    (Institute of International Trade and Development, Department of Economics, University of Port Harcourt)

Abstract

This study investigates the impact of agricultural financing on poverty reduction in Nigeria, applying the Development Finance Theory to examine the relationship between financial systems and economic development. Agricultural financing, which includes loans, credit, insurance, and investment tailored to the needs of farmers and agribusinesses, is critical for enhancing productivity, improving livelihoods, and promoting sustainable development. Using secondary data from 2000 to 2023 sourced from the Central Bank of Nigeria (CBN), UNDP, and World Bank, this study employs a quasi-experimental research design and econometric models to analyze the influence of deposit money bank loans (DMBL), government expenditure (GEX), foreign direct investment (FDI), and other key financial variables on poverty levels. The findings reveal that increases in agricultural financing, particularly through DMBL and GEX, have a significant but complex relationship with poverty, suggesting that ineffective financial allocations may exacerbate poverty. In the long run, stable exchange rates and improved access to agricultural finance are essential for poverty alleviation. This study concludes that targeted reforms in agricultural financing policies and the optimization of financial resources are crucial for achieving sustainable economic growth and poverty reduction in Nigeria.

Suggested Citation

  • Oluwafemi, Kayode & Ijeoma Emele Kalu & Sylvester Udeorah, 2025. "Agricultural Financing Mix and Poverty Reduction in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(15), pages 965-971, July.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-15:p:965-971
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-15/965-971.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/agricultural-financing-mix-and-poverty-reduction-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. World Bank, 2014. "Global Financial Development Report 2014 : Financial Inclusion," World Bank Publications - Books, The World Bank Group, number 16238, April.
    2. Daniel Ajayi & Romanus A. Osabohien & Baba Abdullahi Mohammed & Lawrence Olusegun Fagbola & Timothy Ayomitunde Aderemi, 2023. "Agro-Financing, Institutions and Poverty in Low-Middle income African Countries," EuroEconomica, Danubius University of Galati, issue 1(13), pages 113-126, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marcela Ibanez & Sebastian O. Schneider, 2023. "Income Risk, Precautionary Saving, and Loss Aversion – An Empirical Test," Discussion Paper Series of the Max Planck Institute for Behavioral Economics 2023_06, Max Planck Institute for Behavioral Economics.
    2. Daisy Johana Pacheco & Ana María Yaruro, 2018. "Factors Affecting Ownership of Financial Products in Colombia," Investigación Conjunta-Joint Research, in: María José Roa García & Diana Mejía (ed.), Financial Decisions of Households and Financial Inclusion: Evidence for Latin America and the Caribbean, edition 1, volume 1, chapter 6, pages 157-192, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    3. Marcelin, Isaac & Egbendewe, Aklesso Y.G. & Oloufade, Djoulassi K. & Sun, Wei, 2022. "Financial inclusion, bank ownership, and economy performance: Evidence from developing countries," Finance Research Letters, Elsevier, vol. 46(PA).
    4. François Fall & Akim Almouksit, 2016. "The impact of formal financing on small informal enterprises in Comoros," Working Papers hal-01566389, HAL.
    5. Christie Smith & Aaron Kumar, 2018. "Crypto‐Currencies – An Introduction To Not‐So‐Funny Moneys," Journal of Economic Surveys, Wiley Blackwell, vol. 32(5), pages 1531-1559, December.
    6. Rodríguez, Catherine & Saavedra, Juan E., 2019. "The persistent effects of youth savings reminders: Experimental evidence from text-message campaigns in Colombia," Journal of Development Economics, Elsevier, vol. 139(C), pages 135-156.
    7. Shika Saravanabhavan, 2018. "Understanding the disparity in financial inclusion across Indian States: A comprehensive index for the period 1984 – 2016," Working Papers 405, Institute for Social and Economic Change, Bangalore.
    8. Neha Arora & Naresh Kumar, 2021. "Does Financial Inclusion Promote Human Development? Evidence from India," Jindal Journal of Business Research, , vol. 10(2), pages 163-184, December.
    9. Ashish Kumar Sedai & Rabindra Nepal & Tooraj Jamasb, 2022. "Electrification and Socio-Economic Empowerment of Women in India," The Energy Journal, , vol. 43(2), pages 215-238, March.
    10. Singh, Nirvikar, 2018. "Financial Inclusion: Concepts, Issues and Policies for India," Santa Cruz Department of Economics, Working Paper Series qt98p5m37s, Department of Economics, UC Santa Cruz.
    11. Gallego-Losada, María-Jesús & Montero-Navarro, Antonio & García-Abajo, Elisa & Gallego-Losada, Rocío, 2023. "Digital financial inclusion. Visualizing the academic literature," Research in International Business and Finance, Elsevier, vol. 64(C).
    12. Ferrandino Vittoria & Sgro Valentina, 2021. "Monetary Policy in Argentina from the Inflation of the 1970s to the Default of the New Millennium," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 7, ejes_v7_i.
    13. Mazumder, Mohummed Shofi Ullah & Lu, Wencong, 2015. "What Impact Does Microfinance Have on Rural Livelihood? A Comparison of Governmental and Non-Governmental Microfinance Programs in Bangladesh," World Development, Elsevier, vol. 68(C), pages 336-354.
    14. Farazi, Subika, 2014. "Informal firms and financial inclusion : status and determinants," Policy Research Working Paper Series 6778, The World Bank.
    15. Kodongo, Odongo, 2024. "Financial inclusion effects of engaging with the fintech ecosystem," International Review of Economics & Finance, Elsevier, vol. 96(PB).
    16. Richard M. Kiai & Stephen I. Ng’ang’a & David N. Kiragu & Josphat K. Kinyanjui, 2016. "The Effect of Business Environment on Investment among Financially Included Youth in Kenya," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(4), pages 109-121, October.
    17. Adewale Hassan, 2024. "Mobile Financial Services and the Shadow Economy in Southern African Countries: Does Regulatory Quality Matter?," IJFS, MDPI, vol. 12(4), pages 1-20, November.
    18. Sergio Hernández Mejía & Elena Moreno García, 2025. "Ahorro para emergencias, la inclusión y la educación financiera en México," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 20(2), pages 1-22, Abril - J.
    19. Ayushi Raichoudhury, 2020. "Major Determinants of Financial Inclusion: State-Level Evidences from India," Vision, , vol. 24(2), pages 151-159, June.
    20. Rouse, Marybeth & Verhoef, y Grietjie, 2017. "Mobile banking in Sub-Saharan Africa: setting the way towards financial development," MPRA Paper 78006, University Library of Munich, Germany.

    More about this item

    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:bcp:journl:v:9:y:2025:issue-15:p:965-971. 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: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    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.