Abstract
In recent times, agricultural sector has returned to the forefront of development issues in Nigeria given its contribution to employment creation, sustainable food supply and provision of raw materials to other sectors of the economy. In lieu of that, this study examines the impact of agriculture on the economic growth in Nigeria using annual time series data covering the sample period of 1981 to 2018. To analyse the data collected, Autoregression Distributed Lag (ARDL) model through the bounds testing framework is employed to measure the presence of cointegrating relations between real GDP, agricultural productivity, labour force, and agricultural export. Results show the presence of both short-run and long-run relationship among the variables, and that agriculture has a positive and significant impact on economic growth in Nigeria. These findings inform the Nigerian government on the need to expedite labour force (human capital) and agricultural export (non-oil) development with the view to achieving sustainable growth and development. In addition, developing skills and competencies of labour force through capacity building in the agricultural sector will encourage research and development thereby increase the export size, hence essential for long-term growth.
Highlights
Banking industry is the vital part in any economy because it plays an important role in mobilizing savings from surplus to deficit unit to stream economic activities of the country which propel its economic growth
Profitability is measured by return on assets (ROA) and Return on Equity (ROE) which may be significantly influenced by the internal factors such as Interest Rate Spread (IRS), Net interest margin (NIM), capital adequacy ratio (CAR), Credit Risk (CR), Deposit Growth (DG), Loan to Deposit Ratio (LD), Cost to Income Ratio (CTI) and SIZE of the bank
Similar trend found in ROE, NIM, LD and CTI where as IRS, CA, and Size are comparatively stable among the segments
Summary
Banking industry is the vital part in any economy because it plays an important role in mobilizing savings from surplus to deficit unit to stream economic activities of the country which propel its economic growth. Mujeri and Younus (2009) asserted that for enhancing economic growth, an important prerequisite is to ensure the required flow of saving into productive investments which depends on the development of appropriate financial institutions banks that are capable of generating adequate quantity and quality of investment. To make the industry effective and efficient as well as to provide better financial service to the citizen, a number of commercial banks licensed time to time which are operating according to the bank company act 1991. The industry has exaggerate number of banks and sometimes these numbers may affect profitability and cause to be over competitive even inefficient the industry as Mexico has only 47 commercial banks with 7.4 times larger GDP and 13.2 time larger surface area of Bangladesh in 2016 (Khatun et al, 2018)
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