Trends in financing crop production under selected policies, programmes and schemes in Nigeria (1980-2016)

Abstract

The study analyzed trends in financing crop production under financing policies of programmes, institution and schemes in Nigeria from the period 1980- 2016. Specifically the study analyzed the trend in growth rates of selected agricultural financing policies such as the Agricultural Credit Guarantee Scheme Fund (ACGSF) and Agricultural Development Programme (ADP) and crop output; and compared the funds provided by these selected agricultural financing policies. Data were analyzed using trend analysis and z- test, The study showed that crop output and funds provided for crop production under ACGSF and ADP increased overtime within the reference period and were all significant at p<0.01 level. The study shows a compound growth of 5.3% per annum for crop output, 1.8% per annum for ACGSF, and 1.2% per annum for ADP. The study also showed that the growth in crop output and in the financing polices of programmes, institution and schemes were slow. ACGSF significantly allocated more funds for crop production than were done under ADP within the reference period. The study recommends that government should enhance the growth in crop output by ensuring rapid and sustained increase in the allocation of credit for crop production through financing policies of schemes, institutions and programmes. Efforts must be geared towards ensuring that a healthy balance is strike by governments’ financing of crop production through institutions, programmes and schemes.