Access to credit and agricultural sector performance in Nigeria

Abstract

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.

Keywords:

• agriculture
• agricultural production
• credit facilities
• employment

JEL:

• Codes: Q18
• E24
• H55

Disclosure statement

No potential conflict of interest was reported by the authors.