Agricultural Credit Guarantee Scheme Fund Research Articles

Economic Diverification in Nigeria: Agriculture in Perspective

This study examines economic diversification: agricultural in perceptive. In particular the study examines the impact of investment in agricultural sector in achieving economic diversification between periods spanning from the years 2000 to year 2022. Time series secondary data were sourced from Central Bank Statistical Bulletin (2022) and World Bank Development Indicators (2024). Autoregressive Distributed Lag Regression Estimate (ARDL) analysis was conducted with the aid of E-view 10. Findings of this study reveals that agriculture credit guarantee scheme fund for cash crops and livestock have negative and significant impact on economic diversification. More so, agriculture credit guarantee scheme fund for food crops equally has negative and insignificant impact on economic diversification. However, grand total of agriculture credit guarantee scheme fund on agricultural commodities has positive and insignificant impact on economic diversification. Based on study findings, the following recommendations are suggested; that governments at all levels should as a matter of urgency should sustain funding of agriculture sectors and provide necessary infrastructure in the rural areas where majorities of agricultural activities take place in order to diversify her economy. More so, stakeholders in the agricultural sectors mainly the farmers should take advantage of loanable fund available to them and channelled it to appropriate crops that will yield investment return. In addition, it is also recommended that monetary policy authority should look inward to determine why agricultural credit guarantee scheme fund has negative significant impact on all the three categories of agricultural commodities identified. This can be achieved through close monitoring and adequate supervision of the loan disburse to the direct beneficiaries. Lastly, investment in human capacity in agricultural sector is away forward for economic diversification.

The Impact of Credit Policy Environment on Poultry Production in Nigeria

The research gave empirical data on the correlation between poultry production index and the credit policy environment in Nigeria. An autoregressive distributed lag (ARDL) bound test approach was employed to establish co-integration between series. The estimated long and short-run models parameters demonstrated stability, best quality, efficiency, and unbiased. The findings showed that in the long run, the commercial bank loan to the agricultural sector and domestic credit to the private sector had a significant positive influence on poultry production index while agricultural credit guarantee scheme loan to poultry subunit and lending interest rate exhibited negative relationships. In the short run, the current year coefficient of lending interest rate, the agricultural credit guarantee scheme loan to poultry subunit and domestic credit to the private sector had significant negative correlation with the poultry production index. However, the commercial bank credit to the agricultural sector showed positive effect on poultry production in the short run. The implication of the finding justifies the need to increase the commercial bank credit to the agricultural sector and domestic credit to private sector as a strategy to boost poultry production. Also, the agricultural credit guarantee scheme fund should be reassessed and modify to render it initial objectives. The lending rate should be deliberately lowered to increase credit access by the poultry farmers.

Financial inclusion and impacts on agriculture in Delta State, Nigeria

The study appraised financial inclusion and impacts on agriculture in Delta State, Nigeria. Delta State, located in the southern region of Nigeria, is known for its rich agricultural potential. Agriculture is a major source of livelihood for the majority of its population, contributing significantly to both food security and economic growth. Nigeria introduced National Financial Inclusion Strategy (NFIS) in 2012. Besides, interventions of financial inclusion packages in Nigeria by some corporate financial inclusion organizations include: Agent Banking and Mobile Money, Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), Financial Literacy and Education Programs, Agricultural Credit Guarantee Scheme Fund (ACGSF) and Microfinance Institutions (MFIs). These organizations impacted the Delta State agriculture in the areas of cassava farming, oil palm production, rice cultivation, poultry, fisheries and aquaculture, agribusiness and processing and agricultural diversity. Such Impacts were obvious in food security, poverty reduction, women's empowerment, market access and value chain integration, risk mitigation, access to agricultural inputs, income diversification and increased agricultural productivity. Noticeable financial inclusion challenges in Delta State's agricultural sector were limited access to financial services, insufficient financial literacy programmes and inadequate rural infrastructure. It was concluded that financial inclusion in agriculture in Delta State is a cornerstone for the state's economic development and the well-being of its citizens. Among the recommendations given, it was emphasized that strengthening financial education system should be prioritized in agriculture.

Agriculture Financing for Output Growth: A Focus on Livestock Production in Nigeria

In this study, the effect of agriculture financing such as the agricultural credit guarantee scheme fund, bank loans and advances to agriculture, and foreign aid to agriculture on livestock production was examined in Nigeria from 1981 to 2021. Annual time series data for each of the variables were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin and the Organisation for Economic Cooperation and Development (OECD) Statistics. The method of data analysis includes descriptive statistics, a parsimonious error correction model (ECM), and diagnostic tests. Evidence of the first difference stationary processes was established from the unit root test results. This indicates that the variables are all integrated of order one, I(1). The Johansen cointegration test results show that the variables in the model have a long-run relationship. The parsimonious ECM shows that the agriculture credit guarantee scheme fund has a positive and significant effect on livestock output. The estimated parameters show that a 1% increase in the current value of the agriculture credit guarantee scheme fund leads to a 0.0244% increase in livestock output. Similarly, it was found that livestock output increased by 0.0183% following a 1% increase in the first-lag agriculture credit guarantee scheme fund. The findings highlight the importance of agriculture financing in boosting the growth of livestock production in Nigeria. The results further show that bank loans and advances, as well as foreign aid to agriculture, negatively and significantly affected livestock production. The error correction coefficient (-0.297) is negative and significant at the 5% level.

Agricultural Financing and Economic Growth in Nigeria

This research investigated the impact of agricultural finance on the economic development of Nigeria between the years 1986 and 2022. The Agricultural Credit Guarantee Scheme Fund, bank loans to farmers, government spending on agriculture, and real gross domestic product were used as substitutes for agricultural funding. This analysis relies on time-series data culled from the Central Bank of Nigeria’s statistics bulletin. This research utilised the following data analysis methods: the Ordinary Least Squares (OLS) regression tool, the Error Correction Model technique, the Johansen Cointegration test, and the Augmented Dickey Fuller unit root test. In congruent with the study’s results, there is a substantial relationship between agricultural bank loans and Nigeria’s real GDP. In addition, the Real Gross Domestic Product (GDP)—the monetary worth of all final products and services produced inside Nigeria—is highly correlated with the amount of money the government spends on agriculture. A substantial and important relationship exists between Nigeria’s Real Gross Domestic Product and the Agricultural Credit Guarantee Scheme Fund. The results of the research indicate that the Agricultural Credit Guarantee Scheme Fund, government investment in agriculture, and bank loans all made substantial improvements to Nigeria’s economic development. It has been suggested, among other recommendations, that increasing the volume and size of agricultural loans by reducing the interest rate will facilitate greater economic development in the nation.

Agricultural credit guarantee scheme fund and oil palm production in Nigeria: A vector autoregressive (VAR) approach

Oil palm has been identified as one of the key agricultural products that can diversify Nigeria’s economy. However, its production and export have been hampered by capital constraints. Consequently, the Agricultural Credit Guarantee Scheme Fund (ACGSF) was introduced to encourage lending to farmers and agro-processors to enhance agricultural productivity. Therefore, this study aims to determine the effectiveness of ACGSF allocations to the oil palm production subsector. Time series data on oil palm production, as well as data on ACGSF allocations to oil palm and cash crop production, prime lending rate and commercial banks' loans to agriculture were obtained from FAOSTAT and the Central Bank of Nigeria. Vector autoregression, Granger causality and impulse response functions were used to estimate the short-run relationship. The results reveal that ACGSF allocations to the oil palm subsector and commercial banks’ loans to agriculture have negative and positive effects, respectively, on oil palm production. There was unidirectional causality from ACGSF and commercial banks to agriculture to oil palm production. The findings suggest expansion and close monitoring of the ACGSF scheme, and the intensification and esterification of oil palm production. The study shows that estimating the effect of ACGSF on overall agricultural productivity does not provide deep insight into commodity-specific credit packages.

Funding the Nigerian Agricultural Sector for Improved Performance: The Role of Migrant Workers’ Foreign Remittances Inflows

Although there is a plethora of empirical evidence on the impact of foreign remittances inflows on economic growth in Nigeria, there are few studies that investigated the impact of foreign remittances on agricultural sector performance in the country. This study therefore examined the impact of funding on the performance of the agricultural sector in Nigeria with emphasis on the role of foreign remittances inflows. Specifically, the study investigated the impact of foreign remittances inflows, government expenditure on agriculture, bank credit to agriculture, the Agricultural Credit Guarantee Scheme Fund, and exchange rate on agricultural sector output performance in Nigeria. Exchange rate was used as a control variable. The Johansen co-integration test, Error Correction Mechanism (ECM), and Granger causality test were used to estimate the annual time-series data for the period of 1981 to 2021. The findings from the study revealed that foreign remittances inflows, government expenditure on agriculture, and loans guaranteed under the Agricultural Credit Guarantee Scheme Fund (ACGSE) have significant positive impact on agricultural sector performance. On the other hand, bank credits to agriculture and exchange rate have insignificant negative impact on agricultural sector performance. Among other things, it is recommended that recipients of foreign remittances in Nigeria should be encouraged to invest more in the agricultural sector.

Formal Agricultural Credit Schemes and Economic Growth in Nigeria

This study examined the impact of formal agricultural credits on economic growth in Nigeria between 1981 and 2021. The specific objectives were to determine the effects of the agricultural credit guarantee scheme fund, bank loans and advances to agriculture, foreign aid to agriculture and the cost of funds on real gross domestic product (GDP) growth. The data required for the analysis were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin and the Organization for Economic Cooperation and Development (OECD) Statistics. The descriptive statistics, fully modified ordinary least squares (FM-OLS) and parsimonious error correction model (ECM) formed the basis for the data analysis. The unit root and Johansen cointegration tests results showed that the variables are all stationary at the first difference and cointegrated at the 5 per cent significance level. The long-run regression results showed that the agriculture credit guarantee scheme fund positively affected real GDP growth. The results further showed that bank loans and advances to the agriculture sector have a positive and significant effect on real GDP growth. It was found that 1 per cent increase in that bank loans and advances to the agriculture sector leads to 0.0378 per cent in real GDP growth. The effect of foreign aid to agriculture on real GDP growth was positive but insignificant at the 5 per cent significance level. Evidence of a positive and significant effect of the cost of funds on real GDP growth was established from the long-run results. The estimated coefficient showed that the real GDP growth increases by 0.00356 per cent due to a 1 per cent increase in the cost of funds. The short-run results showed that the coefficient (-0.5125) of the error correction term is negative and significant at the 5 per cent significance level, indicating that about 51.25 per cent distortion from the long-r

IMPACT OF THE AGRICULTURAL CREDIT GUARANTEE SCHEME FUND ON AGRICULTURAL PRODUCTIVITY IN NIGERIA 1981-2020

This study ascertains the impact of the Agricultural Credit Guarantee Scheme Fund on Agricultural Productivity in Nigeria 1981-2020. The ex-post facto research design was adopted for the study. Secondary data obtained from the Central Bank of Nigeria Annual Statistical Bulletin was used for the study. Jarque Bera test statistics was used to check for data normality while the Augmented Dickey Fuller test (ADF) was used to check the stationarity of the data. Johansen co-integration and error correction model was used to estimate the nexus that exists between the variables of the study. Findings from the study revealed that in the longrun, volume of funding to crop sector (FCP) has a positive effect on the output of crops and the effect is statistically significant. Volume of funding to livestock (FCP) is positively signed and in line with a priori expectation. Volume of funding to fishery (FFS) has positive effect on output of fishery within the period under study and this effect is in line with a priori expectation. Finally, volume of funding to forestry (FFT) is positively signed and in line with a priori expectation. The researcher concluded that quality credit to the agricultural sector is very important in both long and shortrun as agriculture plays a vital role in the life of people especially in developing countries such as Nigeria. It was recommended among others that more funding be dedicated by government to improve productivity while policy geared towards improving funding in the shortrun should be aggressively pursued by the government so as to achieve an equilibrium of positive effect of funding in both the long and shortrun period for the four sectors examined.

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

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.

DOES AGRICULTURAL CREDIT GUARANTEE SCHEME FUND GUARANTEES SUSTAINABLE AGRICULTURAL OUTPUT IN NIGERIA?

This study analysed the impact of agricultural credit guarantee scheme fund on agricultural output in Nigeria from 2000-2020. The impact of Agricultural Credit Guarantee Scheme Fund on agricultural output is largely unexplored and as such the study specifically set to determine the impact of Agricultural Credit Guarantee Scheme Fund on agricultural output and their causal relationship using secondary data collected from Central Bank of Nigeria statistics and National Bureau of Statistics reports. Data collected were analyzed using Augmented Dick-fuller, Philip-Perron test, ordinary least square regression analysis, and granger causality test. Regression result showed that 79% of the variations in the agricultural output were accounted for by the explanatory variables included in the model. Specifically, agricultural credit guarantee scheme fund to agriculture (0.03864) was significant and positively related to agricultural output in Nigeria. The tested hypothesis showed that agricultural credit guarantee scheme fund had positive and significant impact on agricultural output in Nigeria and that there was causality between Agricultural Credit Guarantee Scheme Fund and agricultural output. It was concluded that agricultural credit guarantee scheme fund to agriculture had positively impacted on agricultural output in Nigeria within the period of this study. Therefore, the study advocated for reduction in the requirements of the stringent measures on credit scheme for agricultural lending in order to achieve better contribution to agricultural output in Nigeria. From the coefficient of agricultural credit guarantee scheme fund, a 4% increase in agricultural credit would lead to a more than proportionate increase in agricultural output [1,2].

Agricultural Financing and Economic Growth in Nigeria

The study examined the influence of agricultural financing on economic growth in Nigeria over the period 1981 to 2019. The objective of the study is to the impact of the long-term relationship between various forms of agricultural financing on Nigeria’s economic growth. The study employs the stationary test, the co-integration test, the error correction model and the Granger causality model. All variables were stationary at the first difference, and the co-integration test evidenced a long-run relationship. The study identified, in the long run, that; the agricultural credit guarantee scheme fund shows a positive and significant influence on the gross domestic product in Nigeria. The commercial bank loan and community –micro-finance bank loan shows a positive and significant influence on the gross domestic product in Nigeria within the reference period. In light of the findings, the study concluded that all the variables employed predict Nigeria’s gross domestic product. Furthermore, the granger causality results show a demand following a role as against supply leading role, revealing that increase in output level in Nigeria significantly support/promotes agricultural financial instrument. The study recommends that the Federal government should motivate commercial banks to provide adequate credit facilities to the Agricultural sector through moderate bank lending rates for ease of farming business in Nigeria. Proactive campaigns on the availability of credit facilities for farmers to enable them to have access to loans at a single-digit interest rate. This could be achieved through social media, door-to-door vibes, town hall meetings and market squares. Government should create an enabling environment for farmers through the provision of adequate security, pest control measures and seedlings.

Financing Agricultural Sector, a Panacea for Food Security in Nigeria

This study examined the impact of various sources of agricultural financing on food security in Nigeria using time series data that span a period from 1981 to 2020. To achieve the study, the Autoregressive Distributed Lag (ARDL) Model was employed to analyze the data. Food security in Nigeria was conceptualized as food availability proxied by agricultural output in Nigeria. As such, agricultural output was modelled by having commercial bank credit, agricultural credit guarantee scheme fund, and government expenditure on agriculture, inflation and interest rate as independent variables. The study employed time series data from 1981 to 2020. The estimated ARDL model suggested commercial bank credit to agriculture, agricultural credit guarantee scheme fund, government expenditure on agriculture and interest rate have a significant influence on food security measured by agricultural output. Consequently, to improve food security in Nigeria, this study recommended among others that commercial banks should be encouraged to channel their credit to agriculture, and the government should ensure more guarantees on loans to encourage farmers in accessing credit. Finally, to encourage access to food, effort should be made to improve the per capita income of the people in other to meet the demand for food.

GOVERNMENT SPENDING AND AGRICULTURAL OUTPUT IN NIGERIA

This work studied government expenditure on agriculture and agricultural output in Nigeria. It examined the effect of government spending on agricultural output in Nigeria from 1980-2018.The needed data were sourced from the CBN statistical Bulletins. The main analytical tools used are the Augmented Dickey-fuller test and the Autoregressive Distributed Lag model. The ADF unit root test result reveals stationarity among the variables at zero and one. This satisfies the requirement to employ the ARDL bound testing approach. The ARDL Bound test showed the existence of long run relationship among the variables. The findings revealed that government expenditure on Agriculture both capital and recurrent had significant relationship with agricultural output for the period under study. Whereas Commercial Bank loan to Agriculture and Agricultural Credit Guarantee scheme fund both are not significant in the determination of Agricultural output in Nigeria for the period under study. It further reveals that the most important variables that affect agricultural output in Nigeria in ascending order of importance are government recurrent expenditure on agriculture and government capital expenditure on agriculture. These findings imply that Policies that promote increase in government recurrent and capital expenditures on agriculture will increase agricultural output. The result of the study or policy attention also have important implications for policy attention, showing the preference order in policy attention.

Impact of Agricultural Credit on Economic Growth in Nigeria

This study’s aim was to examine the influence of agricultural credit on Nigeria's economic growth for the period of 1981-2017. Data is sourced from Central Bank of Nigeria (CBN) statistical bulletin and world development indicator (WDI). The detailed objectives are to analyze the effect of the Agricultural credit guarantee scheme fund (ACGSF) and the deposit money bank credit to agric sector (DMBCA) on Nigeria's Economic Growth. Data was analyzed using the test for stationarity, Auto-Regressive Distributed Lag (ARDL). ARDL is adopted due to the mixed order of stationarity of the variables at levels and first difference. From the research results, it was established, in the long run, that DMBCA is significant and there exists a direct relationship, only in the short run, and the ACGSF is insignificant both the short and long run but has a direct relation in the short run and an inverse relationship in the long-run. Therefore, it is recommended, that the Federal Government should make coordinated attempts to ensure that farmers especially small-scale farmers have easy access to the financial aids and grants provided and the funds should be disbursed appropriately and adequately without any hitch.

Agricultural Credit Guarantee Scheme Fund (ACGSF) and Agricultural Performance in Nigeria: A Threshold Regression Analysis

Credit financing deficit is one of the problems militating against the performance of agriculture in Nigeria. Against this background, the government of Nigeria introduced the agricultural credit guarantee scheme fund (ACGSF) in 1977 to encourage banks to increase and sustain lending to agriculture. Unfortunately, the scheme has not achieved the desired results. Hence, this study seeks to evaluate the thresholds of ACGSF on agricultural performance in Nigeria between 1981 and 2019. The performance of agriculture was captured using real agricultural Gross Domestic Product (GDP). Annual time series data were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin and the World Development Indicators (WDI) and analysed using threshold regression. Although insignificant, the results show U-shaped relationship between real agricultural GDP and ACGSF. In addition, ACGSF has significant positive effects on real agricultural GDP at 1060389 (₦’ thousand) and 5951809 (₦’ thousand) thresholds. The study concludes that sustain increase in the value of agricultural loans guaranteed and the inclusiveness of more smallholder farmers who dominate the Nigerian agricultural space will translate into robust contribution of the scheme to agricultural performance in Nigeria.

AGRICULTURAL CREDIT GUARANTEE SCHEME FUND AND ITS EFFECT ON AGRICULTURAL OUTPUT IN NIGERIA

Research Background: Agricultural production in Nigeria experiences the challenge of inadequate funding particularly by farmers in rural areas. In an attempt to enhance farmers’ access to credit, the federal Government of Nigeria set up Agricultural Credit Guarantee Scheme Fund (ACGSF) to boost funding in the sector. But to what extent the Scheme has affected the output of agricultural sectors in the Country for the period under review is of great concern especially to policy makers in the Country. Purpose of the article: The study analysed trends and effect of Agricultural Credit Guarantee Scheme Fund (ACGSF) on farmers’ agricultural output (GDP) in Nigeria. The specific objectives of the study were to examine the trend in volume of loans guaranteed by ACGSF to farmers and determine the effect of ACGSF on agricultural output for the period under review. Methods: Secondary data were sourced from Central Bank of Nigeria bulletins, National Bureau for Statistics data base and other financial bulletins. The data were analysed using descriptive and inferential statistics. Findings and value added: The trend revealed that the supply of funds to agricultural sector from the scheme has always increased in a wobbly pattern. It was found that funds guarantee to crop-sub sector increased steadily from 1998 to 2009. The result shows that credit supplied to livestock sub-sector by ACGSF rose consistently in the period under review but initially declined from 1998-2007. The multiple determination coefficients (R2) of 0.8523was obtained and the coefficients of ACGSF on crop sector, livestock sector and fishery sector were 0.1607, 0.2320 and 0.2110 respectively. The signs were all positive and significant at 1% and 5% levels. The study concludes that ACGSF has a positive effect on agricultural output in Nigeria. Hence, it is recommended that government, agricultural agencies and allied bodies should give more preference to the scheme to boost agricultural production. Government should increase funding to the scheme in order to diversify the earnings to eliminate her dependency on oil export.

Access to credit and agricultural sector performance in Nigeria

This study examined how agricultural sector performance will be enhanced in Nigeria through access to credit. The study engaged a time series data sourced from the Central Bank of Nigeria (CBN) statistical bulletin and the World Development Indicators (WDI) of the World Bank for the period 198–2018. The Autoregressive Distribution Lag (ARDL) method was used in the analysis. Results showed that agricultural credit proxied by agricultural credit guarantee scheme fund (ACGSF) and commercial bank credit to agriculture significantly increased agricultural performance by 10.30% and 17.05% respectively. Also, other explanatory variables included in the model (arable land and agricultural employment) tend to increase agricultural performance by 65.51% and 12.40% respectively. Based on findings, the study recommended that farmers should be provided with sufficient access to credit which will enhance their ability to purchase agricultural inputs required to increase productivity.

Commercial Banks Credit and the Performance of Real Sector in Nigeria: 1990-2017

The study examined the arguments and counterarguments within the scientific discussion on commercial banks credit and the performance of real sector in Nigeria. The main objective of the study is to examine the effect of commercial banks credit on the performance of the real sector in Nigeria.Data was sourced from Central Bank of Nigeria Statistical Bulletin. A systematization literary approach for data analysis was Regression Analysis. Findings revealed that bank credit and bank lending rate does not have significant impact on real sector performance in Nigeria. It was showed that there was a positive and significant relationship between agricultural credit guarantee scheme fund and agricultural production in Nigeria. The study therefore recommends that banks should be directed to channel their credits towards the real sector to facilitate overall economic growth and development in Nigeria. It was recommended that there is the need policies that will favor the revamp of the agricultural sector in Nigeria should be given pride of place. Also, monetary authority through the Central Bank of Nigeria should create adequate policies and strategies towards deepening of the financial sector and reducing the cost of credit/loans so as to enhance productivity and consequently enhance the growth of the key sectors of economy such as manufacturing sector.

Agricultural Financing and Economic Performance in Nigeria

The Agricultural sector which used to be the mainstay of the Nigerian economy in the 1950s, 60s and early 70s is now conceived as a risky and unprofitable venture by financial institutions and government. This is because the financial institutions prefer to give funds to other sectors where payback period is short and return rate is high and also because the agricultural sector is inadequately funded by the government due to low budgetary allocation to the Agricultural sector over the years. The study examined the impact of Agricultural Financing on Economic Performance in Nigeria within the sampled period of 1978-2017. The study specifically attempted to assess the impact of Agricultural Financing on Economic Performance in Nigeria. The study which utilizes data through secondary sources from the Central Bank of Nigeria statistical bulletin were analyzed using the Unit root test, Bound Cointegration test and error correction modelling to empirically estimate the coefficient of parameter estimates. The statistical decision of the analysis is based on 5% (0.005) level of significance. From the result, it was deduced that in the long-run, Agricultural Credit Guarantee Scheme Fund (ACGSF) is the most influential agricultural financing variable (as compared to government expenditure on agriculture and commercial bank credit to agriculture) that contributed to economic performance, as it revealed that (ACGSF) had strong positive impact on the growth rate of the Nigerian economy. The study concluded and strongly maintained that Agricultural Financing contributed poorly to the economic performance of Nigeria within the sampled period basically because of inadequate funding.