Impact of Foreign Direct Investment on Nigeria’s Agricultural Sector (1981 to 2019)

Ogbanje, Elaigwu Christopher; Salami, Abubakar Onoja

doi:10.22161/ijeab.74.18

Cited by 4 publications

(6 citation statements)

References 11 publications

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“…The coefficient of Foreign Direct Investment in Agriculture (FDIA) was negative (-22.930) and significant, showing that the variable exhibits negative link with agricultural output in the long term. This result is in line with Ogbanje & Salami (2022) who stated that FDIA had significant and negative influence on the agrarian output in Nigeria. The coefficient of Agricultural Public Investment (PAI) was positive (24.700) and significant at 0.01% probability level which infers that agricultural growth in Nigeria is positively influenced by public investment made in the sector in the long run.…”

Section: Single Equation-error Correction Modelsupporting

confidence: 91%

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

Sunday,

Umar,

Audu

2023

LJE

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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.

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Section: Single Equation-error Correction Modelsupporting

confidence: 91%

“…Therefore, the bank credit is a channel through which the Nigerian government can achieve a boost in the output of the agricultural sector. Ogbanje and Salami (2022) studied the influence of FDI on Nigeria's agricultural sector. Augmented Dickey-Fuller test displayed that the variables were I(1).…”

Section: Literature Reviewmentioning

confidence: 99%

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

Sunday,

Umar,

Audu

2023

LJE

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“…With OLS, Agunuwa et al (2015) showed that there was a positive association between commercial banks' credit and agricultural productivity in Nigeria. Ogbanje et al (2010) examined the effect of commercial banks' loan on agricultural GDP in Nigeria from 1981 to 2007 and stated that commercial banks' loan had a significantly positive effect on agricultural GDP applying simple regression. Osuji and Chigbu (2012) studied the impact of financial development on economic growth in Nigeria from 1960 to 2008 using Granger causality testing and the error correction method.…”

Section: Impact Of Bank Credit On Agriculturementioning

confidence: 99%

“…(2015) showed that there was a positive association between commercial banks’ credit and agricultural productivity in Nigeria. Ogbanje et al. (2010) examined the effect of commercial banks’ loan on agricultural GDP in Nigeria from 1981 to 2007 and stated that commercial banks’ loan had a significantly positive effect on agricultural GDP applying simple regression.…”

Section: Literature Reviewmentioning

confidence: 99%

Has bank credit really impacted agricultural productivity in the Central African Economic and Monetary Community?

Ngong

Onyejiaku

Fonchamnyo

et al. 2022

AJEB

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Purpose This paper investigates the impact of bank credit on agricultural productivity in the Central African Economic and Monetary Community (CEMAC) from 1990 to 2019. Studies’ results on the impact of bank credit on agricultural productivity are not conclusive. The studies demonstrate diverse outcomes which are debatable. The results are conflicting. Design/methodology/approach Agricultural value added (AGRVA) to the gross domestic product (GDP) proxies agricultural productivity while domestic credit to the private sector by banks (DCPSB), broad money supply, land, inflation (INF), physical capital (PHKAP) and labour supply are explanatory variables. The autoregressive distributed lag technique is utilized. Findings The co-integration test results show a long-run co-integration among the variables. The findings disclose that DCPSB, land and PHKAP impact positively on the AGRVA. Broad money supply, INF and labour impact negatively on the AGRVA to the GDP. Research limitations/implications The results suggest that the CEMAC governments should encourage effective ways to increase bank credit flow to private enterprises in the agricultural sector through efficient bank's intermediation. Practical implications The governments should create more agricultural banks and improve the operation of existing ones to ensure direct credit to agricultural activities. The Bank of Central African Economic and Monetary Community should apply aggressive policy which eliminates all the bottlenecks undermining credit flow to the private sector in mutualism with agricultural productivity. Social implications The commercial banks should give more credit to private sector to mutually benefit the agricultural sector and the banking sector. The governments of the CEMAC economies should expand funding into the capital market which considerably boosts agricultural productivity. Originality/value Studies’ results on the impact of bank credit on agricultural productivity are not conclusive. The studies demonstrate diverse outcomes which are debatable. The results are conflicting; some reveal positive impacts, some show negative impacts and others indicate U-shape behaviour. Hence, research is required to fill the lacuna.

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“…Nigeria has the largest population and economy in Africa (Ismail and Kabuga, 2016). With agriculture as the major occupation, Nigeria is located between latitudes 4º 16 and 13º 53 N and longitudes 2º 40 and 14º 4′ E. The climate varies with Equatorial Guinea in the South through the Guinea savannah in the central region and dry Sahel savannah in the North (Hamzat et al, 2006;Ogbanje and Salami, 2022). Climate change is evident in Nigeria by way of rising temperature, varying rainfall, rising sea level and seasonal flooding, drought and desertification (Haider, 2019).…”

Section: Methodsmentioning

confidence: 99%

Nexus between rice productivity and greenhouse gas emission in Nigeria

Ogbanje,

Okpe

2024

Agro-Sci.

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Crop residue burning, which is a common land preparation practice for rice production, generates anthropogenic gases that compound climate change menace. Hence, this study estimated the nexus between rice productivity and greenhouse gas emission in Nigeria using time series that ranged from 1981 to 2020. Time series data on rice yield and residue burning-induced nitrous oxide, carbon dioxide and methane were obtained from the Food and Agriculture Organization. Augmented Dickey-Fuller and Phillips-Perron tests were used to ascertain the stationarity of the series. Johansen-Juselius cointegration and Engle-Granger causality models were used to test for long-run relationship and causality, respectively. The result shows that the series were I(1) and the trace and Max-Eigen tests produced divergent results on the existence of long-run relationship. Findings showed that there was a uni-directional causality from rice yield to nitrous oxide (p < 0.05), carbon dioxide (p < 0.05) and methane (p < 0.05) gases, respectively. The study concluded that rice intensification is a significant contributor to greenhouse gases (GHG) emissions in Nigeria. It was suggested that instead of burning crop leftovers, the Federal Ministries of Agriculture and Rural Development and Environment should educate farmers on proper crop residue management techniques.

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Impact of Foreign Direct Investment on Nigeria’s Agricultural Sector (1981 to 2019)

Cited by 4 publications

References 11 publications

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

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

Has bank credit really impacted agricultural productivity in the Central African Economic and Monetary Community?

Nexus between rice productivity and greenhouse gas emission in Nigeria

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