Authors : Okuri Oyakhire; Dr. Ogheneruemu Obi-Egbedi.

Volume/Issue : Volume 9 - 2024, Issue 5 - May

Google Scholar : https://tinyurl.com/y4t5t3rb

Scribd : https://tinyurl.com/3ft9ksfb

DOI : https://doi.org/10.38124/ijisrt/IJISRT24MAY905

Abstract : This study analyzed the impact of the Commercial Agriculture Credit Scheme (CACS) on the agricultural economy of Nigeria and its total output from 2015 to 2019, using quarterly data. Secondary data were obtained from the Central Bank of Nigeria (CBN) Annual Reports, the Federal Ministry of Agriculture and Rural Development (FMA & RD), and the National Bureau of Statistics (NBS). The study applied the Ordinary Least Square Multiple Regression Model for statistical analysis and used the National Gross Domestic Product (NGDP) and Agricultural Output (AGO) as dependent variables, while Commercial Agriculture Credit Facility Loan to Agriculture (CAL), Money Supply (M2), Unemployment rate (U) and Government Expenditure (G) were used as independent variables. Empirical findings show that there is no statistically significant relationship between CAL, M2, unemployment rate, government expenditure, and NGDP. Similarly, we did not establish a statistically significant relationship between CAL, M2, unemployment rate, government expenditure, and AGO. Overall, the evidence indicates that the desired impact of the Commercial Agriculture Credit Scheme in Nigeria is not being achieved. Arising from the above, we recommend that policymakers and the monetary authorities should investigate why there is a disconnect between the laudable CACS scheme and the ineffective outcome observed. In addition, structural challenges hindering productivity in the agricultural sector such as insecurity, poor road networks, and inadequate power supply should be addressed.

References :

1. Abiola John Asaleye, Henry Inegbedion, Adedoyin Isola Lawal, Oluwayemisi Kadijat Adeleke, Uche Abamba Osakede and Elizabeth Bolatito Ogunwole, (2023) , Revamping agricultural sector and its implications on output and employment generation: Evidence from Nigeria. Journal of Open Agriculture. -2022 – 0140
2. Agunuwa, E.V., Inaya, L., & Proso, T., (2015). Impact of commercial banks credit on agricultural productivity in Nigeria: Time series analysis 1980 - 2013. International Journal of Academic Research in Business and Social Sciences, 5(11).
3. Akinleye, S.O., Akanni, K.A., & Oladoja, M.A., (2003). An appraisal of the agricultural credit guarantee scheme in Nigeria. Department of Agricultural Economics, Olabisi Onabanjo University, Ago Iwoye, Nigeria, 1(1), 1– 14.
4. Akinyosoye, V.O. (2005) Government and Agriculture in Nigeria: Analysis of Policies, Programmes and Administration. Macmillan Publishers Limited, Lagos.
5. Ayeomoni, O., & Aladejana S. A., (2016) Agricultural credit and economic growth nexus: evidence from Nigeria. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(2), 146–158.
6. Bojnec S. Ferto I. (2022). Do Different Types of Common Agricultural Policy Subsidies Promote Farm Employment? Land Use Policy. 2022 Jan 1;112:105823.10.1016/j.landusepol.2021.105823Search in Google Scholar
7. 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.
8. Enyim, O.B., Ewno, E. N., & Okoro, O. T., (2013). Banking sector credit and the performance of the agricultural sector in Nigeria. European Journal of Scientific Research, 23(2), 35 – 55.
9. Obansa, S. A. J., & Maduekwe., I. M., (2013) Agriculture financing and economic growth in Nigeria. European Scientific Journal 9 (1), 168-204.
10. Olowofeso, O. E., Adeboye, A. A., Adejo, Valli, T., Bassey, K. J., & Ochoche, A., (2017). Agricultural sector credit and output relationship in Nigeria: evidence from nonlinear ardl. CBN Journal of Applied Statistics, 8(1), 101-122.
11. Osabohien, R., Afolabi, A., & Godwin, A., (2018). An econometric analysis of food security and agricultural credit facilities in Nigeria. Open Agricultural Journal, 12(1), 227-239.
12. Udih, M., (2014). Bank credits and agricultural development: does it promote entrepreneurship performance? International Journal of Business and Social Science, 5(11), 102 – 107
13. Waseem, K., Sana, F., & Mohammad, J., (2017) Agricultural credit-led agricultural growth: a vecm approach. Asian Journal of Agricultural Extension, Economics & Sociology 19(1),1-16.