Agricultural Credit Guarantee Scheme Research Articles

Quantitative Analysis of Agricultural Programmes’ Effectiveness in Reducing Unemployment Rate in Nigeria

Unemployment remains a pressing issue in Nigeria, with a significant portion of its population unable to secure sustainable employment opportunities. In recent years, agricultural programmes have emerged as potential solutions to address the challenges of unemployment. This study explores the effectiveness of agricultural programmes in reducing unemployment rate in Nigeria. The agricultural sector in Nigeria holds immense potential for job creation, considering the country’s vast arable land, favourable climate, and agricultural resources. However, the sector has been underutilized and faced numerous challenges, leading to high unemployment rates. Agricultural programmes have garnered attention as they aim to revitalize the sector, promote sustainable farming practices, and create employment opportunities for the burgeoning youth population. Consequently, the paper examines the impact of key agricultural programmes such as the Commercial Agriculture Credit Scheme (CACS), Agricultural Credit Guarantee Scheme (ACGS), Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), and FADAMA, introduced by successive Nigerian governments at various times in reducing the unemployment rate in the country. Some of these programme though new, are just a transmutation from older ones, with the operations remaining the same. These programmes have demonstrated positive impacts in several ways according to statistics; contributing to the diversification of the economy of Nigeria and reducing the country’s heavy reliance on oil revenue. The question is, how effective have these programmes been in reducing the unemployment rate? Therefore, the paper’s main objective was to analyse how successful these programmes have been in checking the problem. The study uses the Logit model to investigate the effectiveness of these key Agricultural programmes in curbing the unemployment rate in the country. Data from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS) were used in the analysis. The results reveal that, of the four prominent programmes introduced by the government based on participants employed, the Commercial Agriculture Credit Scheme (CACS) had the likelihood or greater probability at reducing the unemployment rate in the country. The study, consequently, concludes that, subsequent programmes should be designed according to the operations and modus operandi of CACS and that other programmes should either be upgraded to CACS module or be scrapped since their impact on reducing unemployment is not felt.

THE OIL PALM (Elaeis guineensis) ENTERPRISE FINANCING UNDER AGRICULTURAL CREDIT GUARANTEE SCHEME IN NIGERIA

The limited engagement of financial institutions in providing loans and advances to oil palm enterprises under the Agricultural Credit Guarantee Scheme (ACGS) has impeded the sustainable development of these enterprises. This study examined the trends in ACGS loan guarantees, repayments, and outreach to oil palm beneficiaries in Nigeria from 1981 to 2022. The analysis utilized time series data sourced from the Central Bank of Nigeria's statistical bulletin. Both exponential and quadratic trend equations were estimated using the Ordinary Least Squares (OLS) method. The findings indicated a positive exponential growth rate for the value of guaranteed loans (25.05%), repaid loans (15.20%), and the number of beneficiaries (7.37%) over the specified period. The quadratic trend equations suggested stagnation in growth rates over time for both guaranteed loans and repayments by beneficiaries. Furthermore, the quadratic analysis indicated a significant deceleration in growth over a double time period, suggesting that the growth occurred at a diminishing rate. It is recommended that the volume of ACGS loans allocated to the oil palm sector be increased in accordance with the prevailing inflation rate, and that the selection of beneficiaries be refined to ensure that only genuine applicants are identified.

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.

Agricultural Credit Policy and Livestock Development in Nigeria

This research aimed to provide empirical information on the relationship between the livestock production index and the credit policy environment in Nigeria. Time series data were used, and an autoregressive distributed lag (ARDL) bound test approach was adopted to establish the presence of co-integration among series. The estimated long and short run models showed stability, best quality, efficiency and unbiased. The findings showed that in the long run, total credit to the agricultural sector from commercial banks and domestic credit to the private sector both had significant positive influence on livestock production, while agricultural credit guarantee scheme loans to livestock units exhibited a negative impact. In the short run, agricultural credit guarantee scheme loans to livestock, lending interest rate, and domestic credit to the private sector negatively relate to livestock production. However, the commercial banks’ total credit to the agricultural sector showed a positive effect on livestock production in the short run. The implication of the findings indicates a need to increase total commercial credit to the agricultural sector and domestic credit to the private sector, to reassess the agricultural credit guarantee scheme, and to lower the lending interest rate for agricultural credit – these as a means for increasing livestock production in the country.

Effect of Agricultural Funding on Agricultural Output in Nigeria (1990-2020)

This study examined the effect of agricultural funding on agricultural growth in Nigeria spanning from 1990-2020. The specific objectives were to determine the effect of public capital expenditure on agricultural output in Nigeria, determine the effect of public recurrent expenditure on agricultural output in Nigeria, determine the effect of agricultural credit guarantee scheme on agricultural output in Nigeria, and the effect of Foreign Agricultural Grant on agricultural output in Nigeria. This study adopted the quasi-experimental research design. Secondary data were used in this study. Data used were gotten mainly from the publications of Central Bank of Nigeria (CBN) namely; Statistical Bulletin. The method adopted for analyzing is the Augmented Dickey Fuller test (ADF). Pre-estimation diagnostics tests were employed to check for stationarity of the data to prevent spurious regression analysis. From the regression result, it could be seen that only agricultural credit guaranteed scheme fund (ACGSF) was significant in influencing agricultural output in the period under study (1990-2020) as the probability values of its t-statistics were less than 5%, while public capital expenditure on agriculture (PCEXA), Foreign agricultural grant (FAG) and public recurrent expenditure on agriculture (PREXA) did not have any significant influence on agricultural output as the probability values of their t-statistics were greater than 5%. From the result, ACGSF had a positive and significant effect on agricultural output, meaning that a one-unit increase in funding to the ACGSF brought about (0.357068), this might be due to the ACGSF disbursed directly to farmers therefore its positive influence on agriculture output. On the contrary, FAG, PCEXA and PREXA had no significant effect on agricultural output within the period under study, this might be because these funds were not used for the purposes which were earmarked for. The study concluded that foreign agr

Effect of Agriculture on Sustainable Financial Sector’s Growth in Nigeria

Plethora of studies has been concluded on the relationship between agriculture and economic growth, including a few other sectors of the economy. However, no attention has been accorded the relationship between agriculture and the financial sector in line with Demand-Following Hypothesis. Against this backdrop, this study examined the effect of agriculture on the sustainable growth of the Nigerian financial sector from 1999 to 2020. Data were collected from the secondary source and extracted from the Central Bank of Nigeria’s Statistical Bulletin. Analysis of the data was carried out using Autoregressive Distributed Lags Model (ARDL). The result revealed that the variables were co-integrated in the long-run; in addition, credits granted to agricultural sector by the financial institutions (GCA), amount granted to agricultural sector under Agricultural Credit Guarantee Scheme (ACGS) were positively but insignificantly associated with the growth of the financial sector in the long-run with the coefficients: 0.008GCA (p-value = 0.1511>0.05), 0.002ACGS (p-value = 0.4452>0.05). The productivity of the agricultural sector (AGRPROD) however, with coefficient 1.002AGRPROD (p-value = 0.0001<0.05), was predominantly positive and statistically significant in influencing the sustainability of the Nigerian financial sector’s growth in the long-run; this thus amounted to confirmation of Demand-Following Hypothesis. Furthermore, the lending interest rate maintained negative but insignificant effect on the growth of the financial sector in Nigeria. Based on the foregoing result, the study concluded that agriculture positively and significantly promoted the sustainability of the Nigerian financial sector, and recommended accordingly, that agricultural sector should be given top priority in terms of funds and other resources allocation as this culminates in stimulating financial sector’s sustainable growth in Nigeria.

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.

FEDERAL GOVERNMENT AGRICULTURAL FINANCING AND ECONOMIC GROWTH IN NIGERIA

This paper analyzed the impact of federal government agricultural financing on economic growth in Nigeria. The study utilized the time series data which was extracted from the Central Bank of Nigeria statistical bulletin. The properties of the variables were tested using the Augmented Dickey- Fuller unit root test. A Single equation cointegration test confirmed no cointegration and a short-run vector autoregressive model was used to analyze the data, after which the diagnostic test was carried out to confirm the normality of the series. The study revealed that federal government agricultural financing has a negative contribution to economic growth in Nigeria and was statistically insignificant. Agricultural Credit Guarantee Scheme Funds had a positive but not statistically significant contribution to economic growth and there was no causal relationship among the variables. The study concluded that federal government agricultural financing has no significant impact on economic growth in Nigeria. Therefore, the study recommended that federal government should increase funding to the agricultural sector to be able to impact positively on the economic growth of Nigeria.

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.

Effect of Agricultural Financing on the Performance of Agricultural Sector in Nigeria

The study examined the effects of agricultural financing on the performance of agricultural sector in Nigeria using annual time series data. The data for the study was sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin. Contribution of agriculture to GDP was used as proxy for the performance of agricultural sector, commercial banks loan to agriculture, rain fall, government expenditure to agriculture and interest rate were used as proxy for explanatory variables. Following unity in the order of integration, Johansen cointegration approach was used to check for the long run relationship among the variables. Vector autoregressive estimate the vector correction mechanism was used to examine the speed of adjustment of the variables from the short run dynamics to the long run equilibrium. The study found that there is long run relationship among the variables. Specifically; there is significant and long run effect of Agricultural Credit Guarantee Scheme on Contributions of agriculture to GDP. Commercial banks loans to agriculture showed positive and significant effect on Contributions of agriculture to GDP within the reference period. The coefficient of multiple determinations explained the variation in the dependent variable jointly explained by the independent variables. The study recommend that there should be increase in the amount which the agricultural credit guarantee scheme inject into the sector on annual basis and proper supervisory measures should be constituted in order to ensure efficient application and use of the money.