ABSTRACT

The objective of the study was to evaluate the effect of devaluation on commercial banks credit supply to Agriculture in Nigeria. The study was carried out in the Federal Republic of Nigeria. Secondary data were used in this study and were analysed using descriptive statistics and multiple regression. Data were obtained form various issues of Central Bank of Nigeria annual report and statement of accounts, statistical bulletin and the Federal office of Statistics Report. Objective one was analyzed with the use of descriptive statistical tools while objective two and three were analyzed by the use of regression analysis. The T- test was used to compare the amount of credit supplied by commercial banks pre and post devaluation periods. Chows test was used to test for the equality of the coefficient and heterogeneity of the intercepts obtained for the pre devaluation and devaluation regression result. Savings of commercial banks, Nominal Exchange rate and value of guaranteed credit were significant determinants of credit supplied post devaluation and pre devaluation and they positively affected the level of Credit Supply of Commercial Banks to Agriculture in Nigeria