Effect of Agricultural Investments, Credit and Exports on Agricultural Growth in Nigeria (1981-2020)

Abstract

This study evaluated the impact of agricultural investments, credit and exports on agricultural growth in Nigeria (1981-2020). Annual data were sourced from the CBN Statistical bulletins, FAO and World Bank websites. The Vecto Error Correction Model (VECM) and Single-Equation Error-Correction-Model (ECM) were used to examine the long-run and short-run relationships of the variables respectively. The VECM results shows that coefficients of agricultural export (AEXP) and public agricultural investment (PAI) significantly influenced agricultural expansion (growth) in Nigeria in the long run. While in the short run, only the coefficient of foreign direct investment (FDIA) was found to have significant impact on agricultural growth in Nigeria. The study recommended that the government at all levels should create a favourable investment climate in terms of policies to draw foreign investment to the agricultural sector and, Federal and State Governments should increase its level of budgetary allocation to the agricultural segment of Nigeria economy to boost the agricultural sector.