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Agriculture Financing and Growth Performance in Nigeria: Pre-2000 and Post-2000 Analyses

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  • Popogbe Oluwaseyi
  • Dauda Risikat

Abstract

This study examines the role of different types of finance in the development of the Nigerian agricultural sector and two-period (1986-2000 and 2001-2017) analyses are carried out to ascertain this effect. The study adopts the Auto-Regressive Distributed Lag (ARDL) analytical technique. Findings show that there exists a positive and significant relationship between Agricultural Credit Guarantee Scheme Fund (ACGSF) and agricultural output; and industrial output and agricultural output in the pre-2000 analysis. However, only industrial output positively impacted the agricultural sector in the post-2000 analysis while two major sources of finance (ACGSF and Rural Commercial Bank Credit) negatively impacted the agricultural sector during this period. The study recommends an urgent need for effective and well-implemented disbursement of the ACGSF and rural commercial bank credit to the agricultural sector. It is also necessary to strengthen the linkage between the industrial and agricultural sectors so as to sustainably increase the productivity of the agricultural sector.

Suggested Citation

  • Popogbe Oluwaseyi & Dauda Risikat, 2020. "Agriculture Financing and Growth Performance in Nigeria: Pre-2000 and Post-2000 Analyses," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 23(75), pages 16-37, March.
    • Handle: RePEc:rej:journl:v:23:y:2020:i:75:p:16-37
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    References listed on IDEAS

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    JEL classification:

    • G0 - Financial Economics - - General
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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