Domestic Agricultural Financing Through Government and Commercial Bank’s Credits and Agricultural Output Performance in Nigeria

Abstract

This study focused on understanding the influence of domestic agricultural financing through government and commercial banks credits and agricultural output performance in Nigeria. The study employed time series data obtained from Central Bank of Nigeria, Statistical Bulletin and National Bureau of Statistics which covered from 1981 to 2019. The data obtained were analyzed using econometric method like the multiple regression technique. Findings revealed that agricultural performance in Nigeria within the reference period was negatively influenced by the value of commercial banks loans and advances to agriculture and positively influenced by the credit allocation to agricultural sector under ACGSF and by government capital expenditure on agriculture among other factors. The study concludes adequate financing of the agricultural sector is imperative for a positive performance to be recorded in the sector constantly. Finance is inseparable from agricultural performance in Nigeria. For more positive performance to be recorded in the agricultural sector, adequate financing of the sector is indispensable. Both Government and commercial banks in Nigeria should effectively support the provision of adequate credit to the agricultural sector such that farmers could transit from subsistence to commercial orientation in a sustainable manner in Nigeria.