Agro-Financing and Agricultural Output in Nigeria

  • Romanus OSABOHIEN Department of Economics and Development Studies, Covenant University, Ota, Nigeria Centre for Economic Policy and Development Research (CEPDeR)
  • Isaiah O. OLURINOLA Department of Economics and Development Studies, Covenant University, Ota, Nigeria
  • Oluwatoyin A. MATTHEW Department of Economics and Development Studies, Covenant University, Ota, Nigeria Centre for Economic Policy and Development Research (CEPDeR)

Abstract

This study examined the impact of agro-financing on agricultural output in Nigeria. The data for the study was sourced from the Central of Nigeria (CBN) Statistical Bulletin and the World Development Indicators (WDI) of the World Bank for the period between 1990 and 2019. The study applied the Canonical Cointegration approach to achieve its objectives. Findings showed that agro-financing significantly affect the level of agricultural output in Nigeria. The result of the econometric models estimated in this study showed that, on average, a 1% increase in agro-financing may increase agricultural output by between 0.12%. Therefore, the study recommended that more agro-funding at low-interest rates will motivate farmers to invest in high-yield seedlings, farm implements, organic inputs that are capable of positively impacting total yield leading to more output.

References

[1] Ademola, A. 2019. Impact of Agricultural Financing on Nigeria Economy, Asian Journal of Agricultural Extension, Economics and Sociology 31(2): 1 – 13.
[2] Fasoyiro, S., and Taiwo, K. 2012. Strategies for increasing food production and food security in Nigeria, Journal of Agricultural Food Information 13(4): 338 – 55.
[3] Fowowe, B. 2020. The effects of financial inclusion on agricultural productivity in Nigeria, Journal of Economics and Development. https://doi.org/10.1108/JED-11-2019-0059.
[4] Ali, J. I., Simon, J., and Ekpe, M.J. 2016. Financial Intermediation and Agricultural Output in Nigeria: An Impact Analysis of Deposit Money Banks’ Credit. International Journal of Agricultural Economics 1(1): 16 – 25.
[5] Egwu, P.N. 2016. Impact of Agricultural Financing on Agricultural Output, Economic Growth and Poverty Alleviation in Nigeria, Journal of Biology, Agriculture and Healthcare 6(2): 36 – 42.
[6] Olowofeso, O. E., Adeboye, A. A., Adejo, V. T., Bassey, K. J., and Abraham, O. 2017. Agricultural sector credit and output relationship in Nigeria: Evidence from non-linear ARDL1. CBN Journal of Applied Statistics 8(1): 101 – 122.
[7] Osabohien, R., Adeleye, N., and De Alwis, T. 2020a. Agro-Financing and Food Production in Nigeria, Heliyon, 5(6) e04001 https://doi.org/10.1016/j.heliyon.2020.e04001.
[8] Osabohien, R., Afolabi, A., and Godwin, A. 2018. An econometric analysis of food security and agricultural credit facilities in Nigeria, The Open Agriculture Journal 12: 227 – 239.
[9] Osabohien, R., Osuagwu, E., Osabuohien, E., Ekhator-Mobayode, U. E., Matthew, O., and Gershon, O. 2020b. Households access to agricultural credit and agricultural production in Nigeria: A Propensity Score Matching model, South African Journal of Economic and Management Sciences 23(1): 1 – 11, a2688. DOI: https://doi.org/10.4102/sajems.v23i1.2688.
[10] Uremadu,S. O., Ariwa, F.O., and Uremadu, C. E. D. 2018. Impact of Government Agricultural Expenditure on Agricultural Productivity in Nigeria. Current Investigations in Agricultural Current Research, Sciences, 1(6): 310 – 317.
[11] Popogbe, O. and Dauda, R. 2020. Agriculture Financing and Growth Performance in Nigeria: Pre-2000 and Post-2000 Analyses, The Romanian Economic Journal, 5: 16 – 37
[12] World Bank. 2019. Agriculture Finance and Agriculture Insurance. https://www.worldbank.org/en/topic/financialsector/brief/agriculture-finance.
[13] Wulandari, E., Meuwissen, M. P., Karmana, M. H., and Lansink, A. G. O. 2017. Performance and access to finance in Indonesian horticulture, British Food Journal 119(3): 625 – 634.
Published
2020-06-15
How to Cite
OSABOHIEN, Romanus; OLURINOLA, Isaiah O.; MATTHEW, Oluwatoyin A.. Agro-Financing and Agricultural Output in Nigeria. Journal of Advanced Research in Law and Economics, [S.l.], v. 11, n. 4, p. 1262-1268, june 2020. ISSN 2068-696X. Available at: <https://journals.aserspublishing.eu/jarle/article/view/5320>. Date accessed: 09 aug. 2020. doi: https://doi.org/10.14505//jarle.v11.4(50).22.