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Bangladesh Journal of Agricultural Economics, 1992
Land Tenancy and Exploitation of Palm Forest Resources In Nlgena Ade S Olomola Nlgenan InstItute ... more Land Tenancy and Exploitation of Palm Forest Resources In Nlgena Ade S Olomola Nlgenan InstItute of Social and Economic Research SUMMARY NigerIa ... ltlOn of common grazmg lands (Feder 1977 1979 Jodha 1980) mdlcate that the propo<; ed<; olu-lion,> dre not h"'ely to ...
This paper undertakes an analysis of the credit control mechanisms vis-a-vis the targeting of loa... more This paper undertakes an analysis of the credit control mechanisms vis-a-vis the targeting of loans for agricultural financing in Nigeria. Such controls include loan portfolio requirements, loan guarantees, interest ceiling, regulations on rural bank branching and the granting of moratorium. The rationale for these control measures and the underlying assumptions are critically reviewed both in theory and practice. Having examined the various effects of credit controls on channeling funds into agriculture, it is argued that the persistence of such controls is tantamount to the promotion of placebos rather than promoting farmers' accessibility to formal credit. In other words, some of the existing controls need to be relaxed or backed up with complementary policy actions if they are to contribute more meaningfully to the solution of agricultural finance problems in the country. In particular such bottlenecks as real negative rates of interest, high rates of loan default, low level of rural savings mobilization, leakage of credit funds to unintended beneficiaries etc.; arising directly or indirectly from credit controls will have to be eliminated. In conclusion, the paper contends that as the need for increased supply of agricultural credit rises so also will be the need for policy makers to weigh the favourable effects of credit controls on the agricultural sector against the unfavourable effects that may develop within the financial system. In other words, trade-offs between credit control and credit supply need to be balanced regularly in line with the dictates of economic realities to ensure that the agricultural sector derives the desired benefits.
This study sought to determine the impact of the financial capital intervention (stimulus to the ... more This study sought to determine the impact of the financial capital intervention (stimulus to the banking sector) on credit flow to the agricultural sector using random-effects Tobit econometric technique and proffer suggestions for improved participation of the banking sector in agricultural financing in Nigeria. The results show that loan supply is higher for banks that are younger and bigger in size and that it is significantly higher under the commercial agricultural credit scheme (CACS) than before; implying that the financial stimulus have elicited significantly positive response from the commercial banks. Prior to CACS rising borrowers risk was associated with higher probability of loan supply whereas under CACS risk-taking by commercial banks has been moderated due to regulatory interventions by the CBN including intensive monitoring and enforcement of operational guidelines. Commercial banks do not increase agricultural lending due to higher leverage, greater liquidity and w...
1. INTRODUCTION As growth in the agricultural sector and economic growth in general is on the inc... more 1. INTRODUCTION As growth in the agricultural sector and economic growth in general is on the increase, the actual population in poverty is also growing. This paradox raises the critical question as to whether or not growth in Nigeria is actually pro-poor. In achieving the broad goals of economic growth and poverty reduction in the country the overarching issue is not only to ensure that growth is pro-poor but also it must be sustainable in general and in the agricultural sector in particular. The main challenge now is how to design effective mechanisms and institutional arrangements to alleviate rural poverty and sustain the growth of agriculture. Interestingly, local level institutions are bracing up to the challenge while individuals, groups and enterprises especially within the agribusiness sector are designing various coping mechanisms. These institutions and mechanisms have to be carefully examined for possible lessons and implications for pro-poor growth in the country. The i...
Development Economics: Regional & Country Studies eJournal, 2014
Agro-dealership financing deserves policy attention if agro-dealers are to contribute to the succ... more Agro-dealership financing deserves policy attention if agro-dealers are to contribute to the success of the ongoing agricultural transformation in Nigeria. Thus, this study seeks to (i) examine the issues influencing the decisions of agro-dealers to participate in the loan market, (ii) analyze the demand for business loan by the agro-dealers and (iii) articulate policy measures for sustainable financing of agro-input business enterprises in Nigeria. The study employed primary data collected through structured questionnaires from 300 agro-dealers and used a Tobit type-II model for the analysis. The results show that interest rate, debt, value of asset, membership of trading association and source of credit are major determinants of loan demand. Agro-dealers need to organize themselves into input trading associations to enhance their creditworthiness and unleash the inherent social capital and information advantages for improved agro-dealership financing. Moreover, diversification of ...
Human Rights Documents online
In spite of the involvement of non-bank institutions in credit delivery to farmers in Nigeria, ac... more In spite of the involvement of non-bank institutions in credit delivery to farmers in Nigeria, access to this financial resource remains highly restricted. One of the major constraints is high transaction costs. This paper examines the structure and determinants of transaction costs of borrowing under farm credit schemes. Administrative expenses constitute the highet proportion of the borrowing transaction costs. And
This paper undertakes an analysis of the credit control mechanisms vis-a-vis the targeting of loa... more This paper undertakes an analysis of the credit control mechanisms vis-a-vis the targeting of loans for agricultural financing in Nigeria. Such controls include loan portfolio requirements, loan guarantees, interest ceiling, regulations on rural bank branching and the granting of moratorium. The rationale for these control measures and the underlying assumptions are critically reviewed both in theory and practice. Having examined the various effects of credit controls on channeling funds into agriculture, it is argued that the persistence of such controls is tantamount to the promotion of placebos rather than promoting farmers' accessibility to formal credit. In other words, some of the existing controls need to be relaxed or backed up with complementary policy actions if they are to contribute more meaningfully to the solution of agricultural finance problems in the country. In particular such bottlenecks as real negative rates of interest, high rates of loan default, low level of rural savings mobilization, leakage of credit funds to unintended beneficiaries etc.; arising directly or indirectly from credit controls will have to be eliminated. In conclusion, the paper contends that as the need for increased supply of agricultural credit rises so also will be the need for policy makers to weigh the favourable effects of credit controls on the agricultural sector against the unfavourable effects that may develop within the financial system. In other words, trade-offs between credit control and credit supply need to be balanced regularly in line with the dictates of economic realities to ensure that the agricultural sector derives the desired benefits.
Agricultural expenditure is critical to the transformation of the agricultural sector in Nigeria.... more Agricultural expenditure is critical to the transformation of the agricultural sector in Nigeria. Yet spending on agriculture remains at low levels in spite of the sector’s huge potential for wealth creation, employment generation, and poverty reduction. This report is a summary of the findings of the Nigeria agricultural public expenditure review (AgPER) at the federal and subnational levels. The main objectives of this review are to (1) examine the extent to which the size and composition of public spending on agriculture is consistent with national and subnational agricultural policies and development priorities, (2) analyze the efficiency and effectiveness of public resources allocated to agriculture, (3) understand the cross-tier fiscal and planning relationships between the federal government and subnational governments, (4) develop a database of public agricultural expenditures at the federal and subnational levels, and (5) provide recommendations on how to improve the effici...
Concern is growing about green economy in the country on account of the bourgeoning population wi... more Concern is growing about green economy in the country on account of the bourgeoning population with rising poverty and increasing risk of food insecurity and environmental degradation and in consonance with the renewed emphasis being given to the phenomenon all over the world. Although the agricultural sector has demonstrated improved performance since the inception of ATA in 2011, financing bottlenecks remain; and the major concern is the lack of emphasis on green finance. This paper advocates for financing mechanisms to support a transformation agenda that moves agriculture away from activities that are nature degrading and environment polluting to those that are nature preserving and environment friendly. It argues that an agricultural financing framework to engender a green economy in Nigeria must be pursued within the context of sustainable development and poverty alleviation in which the integration between economic, social and environmental pillars of development are recogniz...
Research Papers in Economics, 2015
The food crisis of 2008 in Nigeria was influenced by price changes in the world market and the es... more The food crisis of 2008 in Nigeria was influenced by price changes in the world market and the escalation of the price of imported fuel into Nigeria which led to sharp increases in the prices of agricultural inputs and transportation cost. The soaring prices of food staples benefited the producers whereas there was a worsening of malnutrition among the poor. To cushion the effects within the short-term, the government released grains from the reserve, ordered the import of half a million tonnes of rice to be sold at a subsidized rate and suspended the tariff on rice imports. The policy measures adopted caused a reversal of the trend of food price increase within six months, generated awareness about the nutritional importance of major food staples, and led to changes in preferences in the demand for food commodities and stimulated increased financing for commercial agriculture. This study sought to (i) examine the political economy issues surrounding the 2008 food price crisis, (ii)...
Food Industry eJournal, 2014
The level of public spending on agriculture in Nigeria remains low regardless of the indicator us... more The level of public spending on agriculture in Nigeria remains low regardless of the indicator used. Agricultural spending as a share of total federal spending averaged 4.6 percent between 2008 and 2012 and has been trending downward precipitously. In contrast, Nigeria recorded an annual average agricultural growth rate of more than 6 percent between 2003 and 2010, and agricultural gross domestic product followed an increasing trend between 2008 and 2012. Budgetary allocation to agriculture compared with other key sectors is also low despite the sector’s role in the fight against poverty, hunger, and unemployment and in the pursuit of economic development. Public investment has been stifled by the lopsided manner in which national revenue is being allocated among the three tiers of government that have responsibility for agricultural development.
ERN: Economic Growth & Aggregate Productivity in Developing Economies (Topic), 2009
The relationship among economic growth, employment and poverty reduction is an organic one such t... more The relationship among economic growth, employment and poverty reduction is an organic one such that the evolution of economic growth is intimately tied to the evolution of employment generation and poverty reduction. Imbalances in macro-economic policies and poor implementation could result in unemployment thereby exacerbating inequality and poverty. The methodology of the study is basically a macro level analysis of how economic growth could contribute to poverty reduction through increases in employment in higher productivity sectors/occupations and a rise in wages. It employs intensity of growth as measured by the GDP elasticity of employment. The technique further involves a macroeconomic analysis of the linkage between the incidence of poverty and employment intensity of growth in Nigeria. The study found among other things that poverty has risen since the resumption of growth in Nigeria. Although there seems to be some decline in relative poverty in recent past, the actual nu...
Political Economy - Development: Domestic Development Strategies eJournal, 2010
Since independence in 1960, the development efforts and outcomes in Nigeria varied from time to t... more Since independence in 1960, the development efforts and outcomes in Nigeria varied from time to time just as the development paradigms and influences nationally and externally. This paper reviews the scenarios at critical stages in the development process illuminating the salient political and economic policy landmarks and anti-development syndromes such as poor leadership, widespread corruption, political cultism, dominant external influence, high cost of governance and security challenges. A characterization of Nigeria’s development trajectory at various sub-periods from 1960 to 2010 is made including a comparison of some economic, social and other relevant development indicators among the 17 African countries that gained independence in 1960 as well as other comparator countries.Although the country is politically independent it has not been free to galvanize the resources in the interest of the citizens to achieve the desired level of development. In general, the correlation bet...
Bangladesh Journal of Agricultural Economics, 1992
Land Tenancy and Exploitation of Palm Forest Resources In Nlgena Ade S Olomola Nlgenan InstItute ... more Land Tenancy and Exploitation of Palm Forest Resources In Nlgena Ade S Olomola Nlgenan InstItute of Social and Economic Research SUMMARY NigerIa ... ltlOn of common grazmg lands (Feder 1977 1979 Jodha 1980) mdlcate that the propo<; ed<; olu-lion,> dre not h"'ely to ...
This paper undertakes an analysis of the credit control mechanisms vis-a-vis the targeting of loa... more This paper undertakes an analysis of the credit control mechanisms vis-a-vis the targeting of loans for agricultural financing in Nigeria. Such controls include loan portfolio requirements, loan guarantees, interest ceiling, regulations on rural bank branching and the granting of moratorium. The rationale for these control measures and the underlying assumptions are critically reviewed both in theory and practice. Having examined the various effects of credit controls on channeling funds into agriculture, it is argued that the persistence of such controls is tantamount to the promotion of placebos rather than promoting farmers' accessibility to formal credit. In other words, some of the existing controls need to be relaxed or backed up with complementary policy actions if they are to contribute more meaningfully to the solution of agricultural finance problems in the country. In particular such bottlenecks as real negative rates of interest, high rates of loan default, low level of rural savings mobilization, leakage of credit funds to unintended beneficiaries etc.; arising directly or indirectly from credit controls will have to be eliminated. In conclusion, the paper contends that as the need for increased supply of agricultural credit rises so also will be the need for policy makers to weigh the favourable effects of credit controls on the agricultural sector against the unfavourable effects that may develop within the financial system. In other words, trade-offs between credit control and credit supply need to be balanced regularly in line with the dictates of economic realities to ensure that the agricultural sector derives the desired benefits.
This study sought to determine the impact of the financial capital intervention (stimulus to the ... more This study sought to determine the impact of the financial capital intervention (stimulus to the banking sector) on credit flow to the agricultural sector using random-effects Tobit econometric technique and proffer suggestions for improved participation of the banking sector in agricultural financing in Nigeria. The results show that loan supply is higher for banks that are younger and bigger in size and that it is significantly higher under the commercial agricultural credit scheme (CACS) than before; implying that the financial stimulus have elicited significantly positive response from the commercial banks. Prior to CACS rising borrowers risk was associated with higher probability of loan supply whereas under CACS risk-taking by commercial banks has been moderated due to regulatory interventions by the CBN including intensive monitoring and enforcement of operational guidelines. Commercial banks do not increase agricultural lending due to higher leverage, greater liquidity and w...
1. INTRODUCTION As growth in the agricultural sector and economic growth in general is on the inc... more 1. INTRODUCTION As growth in the agricultural sector and economic growth in general is on the increase, the actual population in poverty is also growing. This paradox raises the critical question as to whether or not growth in Nigeria is actually pro-poor. In achieving the broad goals of economic growth and poverty reduction in the country the overarching issue is not only to ensure that growth is pro-poor but also it must be sustainable in general and in the agricultural sector in particular. The main challenge now is how to design effective mechanisms and institutional arrangements to alleviate rural poverty and sustain the growth of agriculture. Interestingly, local level institutions are bracing up to the challenge while individuals, groups and enterprises especially within the agribusiness sector are designing various coping mechanisms. These institutions and mechanisms have to be carefully examined for possible lessons and implications for pro-poor growth in the country. The i...
Development Economics: Regional & Country Studies eJournal, 2014
Agro-dealership financing deserves policy attention if agro-dealers are to contribute to the succ... more Agro-dealership financing deserves policy attention if agro-dealers are to contribute to the success of the ongoing agricultural transformation in Nigeria. Thus, this study seeks to (i) examine the issues influencing the decisions of agro-dealers to participate in the loan market, (ii) analyze the demand for business loan by the agro-dealers and (iii) articulate policy measures for sustainable financing of agro-input business enterprises in Nigeria. The study employed primary data collected through structured questionnaires from 300 agro-dealers and used a Tobit type-II model for the analysis. The results show that interest rate, debt, value of asset, membership of trading association and source of credit are major determinants of loan demand. Agro-dealers need to organize themselves into input trading associations to enhance their creditworthiness and unleash the inherent social capital and information advantages for improved agro-dealership financing. Moreover, diversification of ...
Human Rights Documents online
In spite of the involvement of non-bank institutions in credit delivery to farmers in Nigeria, ac... more In spite of the involvement of non-bank institutions in credit delivery to farmers in Nigeria, access to this financial resource remains highly restricted. One of the major constraints is high transaction costs. This paper examines the structure and determinants of transaction costs of borrowing under farm credit schemes. Administrative expenses constitute the highet proportion of the borrowing transaction costs. And
This paper undertakes an analysis of the credit control mechanisms vis-a-vis the targeting of loa... more This paper undertakes an analysis of the credit control mechanisms vis-a-vis the targeting of loans for agricultural financing in Nigeria. Such controls include loan portfolio requirements, loan guarantees, interest ceiling, regulations on rural bank branching and the granting of moratorium. The rationale for these control measures and the underlying assumptions are critically reviewed both in theory and practice. Having examined the various effects of credit controls on channeling funds into agriculture, it is argued that the persistence of such controls is tantamount to the promotion of placebos rather than promoting farmers' accessibility to formal credit. In other words, some of the existing controls need to be relaxed or backed up with complementary policy actions if they are to contribute more meaningfully to the solution of agricultural finance problems in the country. In particular such bottlenecks as real negative rates of interest, high rates of loan default, low level of rural savings mobilization, leakage of credit funds to unintended beneficiaries etc.; arising directly or indirectly from credit controls will have to be eliminated. In conclusion, the paper contends that as the need for increased supply of agricultural credit rises so also will be the need for policy makers to weigh the favourable effects of credit controls on the agricultural sector against the unfavourable effects that may develop within the financial system. In other words, trade-offs between credit control and credit supply need to be balanced regularly in line with the dictates of economic realities to ensure that the agricultural sector derives the desired benefits.
Agricultural expenditure is critical to the transformation of the agricultural sector in Nigeria.... more Agricultural expenditure is critical to the transformation of the agricultural sector in Nigeria. Yet spending on agriculture remains at low levels in spite of the sector’s huge potential for wealth creation, employment generation, and poverty reduction. This report is a summary of the findings of the Nigeria agricultural public expenditure review (AgPER) at the federal and subnational levels. The main objectives of this review are to (1) examine the extent to which the size and composition of public spending on agriculture is consistent with national and subnational agricultural policies and development priorities, (2) analyze the efficiency and effectiveness of public resources allocated to agriculture, (3) understand the cross-tier fiscal and planning relationships between the federal government and subnational governments, (4) develop a database of public agricultural expenditures at the federal and subnational levels, and (5) provide recommendations on how to improve the effici...
Concern is growing about green economy in the country on account of the bourgeoning population wi... more Concern is growing about green economy in the country on account of the bourgeoning population with rising poverty and increasing risk of food insecurity and environmental degradation and in consonance with the renewed emphasis being given to the phenomenon all over the world. Although the agricultural sector has demonstrated improved performance since the inception of ATA in 2011, financing bottlenecks remain; and the major concern is the lack of emphasis on green finance. This paper advocates for financing mechanisms to support a transformation agenda that moves agriculture away from activities that are nature degrading and environment polluting to those that are nature preserving and environment friendly. It argues that an agricultural financing framework to engender a green economy in Nigeria must be pursued within the context of sustainable development and poverty alleviation in which the integration between economic, social and environmental pillars of development are recogniz...
Research Papers in Economics, 2015
The food crisis of 2008 in Nigeria was influenced by price changes in the world market and the es... more The food crisis of 2008 in Nigeria was influenced by price changes in the world market and the escalation of the price of imported fuel into Nigeria which led to sharp increases in the prices of agricultural inputs and transportation cost. The soaring prices of food staples benefited the producers whereas there was a worsening of malnutrition among the poor. To cushion the effects within the short-term, the government released grains from the reserve, ordered the import of half a million tonnes of rice to be sold at a subsidized rate and suspended the tariff on rice imports. The policy measures adopted caused a reversal of the trend of food price increase within six months, generated awareness about the nutritional importance of major food staples, and led to changes in preferences in the demand for food commodities and stimulated increased financing for commercial agriculture. This study sought to (i) examine the political economy issues surrounding the 2008 food price crisis, (ii)...
Food Industry eJournal, 2014
The level of public spending on agriculture in Nigeria remains low regardless of the indicator us... more The level of public spending on agriculture in Nigeria remains low regardless of the indicator used. Agricultural spending as a share of total federal spending averaged 4.6 percent between 2008 and 2012 and has been trending downward precipitously. In contrast, Nigeria recorded an annual average agricultural growth rate of more than 6 percent between 2003 and 2010, and agricultural gross domestic product followed an increasing trend between 2008 and 2012. Budgetary allocation to agriculture compared with other key sectors is also low despite the sector’s role in the fight against poverty, hunger, and unemployment and in the pursuit of economic development. Public investment has been stifled by the lopsided manner in which national revenue is being allocated among the three tiers of government that have responsibility for agricultural development.
ERN: Economic Growth & Aggregate Productivity in Developing Economies (Topic), 2009
The relationship among economic growth, employment and poverty reduction is an organic one such t... more The relationship among economic growth, employment and poverty reduction is an organic one such that the evolution of economic growth is intimately tied to the evolution of employment generation and poverty reduction. Imbalances in macro-economic policies and poor implementation could result in unemployment thereby exacerbating inequality and poverty. The methodology of the study is basically a macro level analysis of how economic growth could contribute to poverty reduction through increases in employment in higher productivity sectors/occupations and a rise in wages. It employs intensity of growth as measured by the GDP elasticity of employment. The technique further involves a macroeconomic analysis of the linkage between the incidence of poverty and employment intensity of growth in Nigeria. The study found among other things that poverty has risen since the resumption of growth in Nigeria. Although there seems to be some decline in relative poverty in recent past, the actual nu...
Political Economy - Development: Domestic Development Strategies eJournal, 2010
Since independence in 1960, the development efforts and outcomes in Nigeria varied from time to t... more Since independence in 1960, the development efforts and outcomes in Nigeria varied from time to time just as the development paradigms and influences nationally and externally. This paper reviews the scenarios at critical stages in the development process illuminating the salient political and economic policy landmarks and anti-development syndromes such as poor leadership, widespread corruption, political cultism, dominant external influence, high cost of governance and security challenges. A characterization of Nigeria’s development trajectory at various sub-periods from 1960 to 2010 is made including a comparison of some economic, social and other relevant development indicators among the 17 African countries that gained independence in 1960 as well as other comparator countries.Although the country is politically independent it has not been free to galvanize the resources in the interest of the citizens to achieve the desired level of development. In general, the correlation bet...