Effects Of Agricultural Credit On The Growth Of Nigeria Economy

ABSTRACT

This empirical study examined the impact of commercial banks credit on agricultural output in Nigeria over the period of 1960 — 2011, under two broad objectives — to determine the impact of commercial bank credit on Agricultural output, and to determine the impact of agricultural output on Nigerian economic development. Secondary data extracted from Central Bank of Nigeria (CBN) statistical bulletin was used. In order to analyse the data, the study employs Regression Analysis Ordinary Least Square (OLS) method of estimation, using e-views statistical package. The following empirical findings were made in this study; it was observed that commercial bank credit has significant impact on Agricultural output. Also, it observed that, agricultural output as well as commercial banks credit to agriculture and real interest rate contributed a lot to economic growth in Nigeria. It was then concluded based on the t-test that commercial bank credit has significant impact on agricultural output and in turn that agricultural output has significant impact on Nigeria economic growth. It was then recommended among others that high interest rates charged by institutions, cumbersome loan processing procedures, lacks of collaterals and adequate inform at/on about loan-availability be checked by monetary authorities.