Financing Agricultural Development in Nigeria: Issues and Challenges (original) (raw)
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Asian Journal of Agriculture and Rural Development
One of the challenges facing agricultural sector development in Nigeria is inadequate financing by the government and financial institutions. This poor agricultural funding has an impact on economic activities. Thus, this study investigated the connection between agricultural funding and economic performance in Cross Rivers State's Obudu Local Government Area (LGA). The survey study methodology was employed, and a questionnaire was used as its primary data source, combined with a stratified sample technique. The targeted population was restricted to farmers and agriculturalists in the study area. Descriptive statistics, such as frequency and percentages tables, were calculated, and the data gathered from the questionnaire were compiled, computed, and analysed. The results of hypothesis testing showed a relationship between agricultural finance and economic performance, as well as a connection between agricultural credit schemes and agricultural sector expansion, using analysis o...
AGRICULTURAL FINANCING POLICIES AND RURAL DEVELOPMENT IN NIGERIA
The study examined the agricultural financing policies of the government of Nigeria and effects on rural development .The study found that though the government has made serious efforts at making good agricultural policies through schemes, programmes and institutions, it has not been able to back them up with adequate budgetary allocation and financing coupled with corruption in the execution of the policies. It is recommended that for the government agricultural financing policies to achieve its target of rural development, Nigeria will need an adequate level of strategically targeted investment in agriculture, upgrade rural infrastructure, boost productivity, and increase competitiveness of the farm output, in addition to fighting corruption.
Universal Journal of Accounting and Finance, 2022
Financing agriculture in Nigeria from the perspective of both conventional and Islamic sources of finance has been faced with multi-dimensional challenges that impede the agricultural sector threatening sustainable agricultural production for food security. With a population size of 206 million and 70.8 million hectares of arable land, Nigeria is threatened with a high rate of unemployment, poverty, malnutrition, and social inequality. This can be related to the lack of access to finance by smallholder farmers in financial institutions. If access to financial institutions in critical sectors like agriculture and energy can be enhanced, then there will be an increased development in the overall value chain of the agricultural sector. This review paper is aimed at (1) Evaluating the current studies of the cause and effect by looking at the roles played by private, public, and international financial institutions and agencies and (2) Outlining the research gap in the literature with a focus on comparative study on financing agriculture in Nigeria. This study is based on a multi-dimensional theoretical approach (structural-functional, dependency theory, modernization theory, human needs theory, conflict and critical theories). The paper adopted the systematic literature review and reviewed 27 relevant source documents. Based on the review of the literature, the following major results emerged: Lack of macroeconomic policy, lack of access to finance, and bureaucratic bottleneck. The literature review revealed the challenges of financing agriculture and the effect on society based on results that emerged from the study. In addition, it also revealed the practical, evidence, theoretical, population, implementation, and methodological gaps that can lead to further research study. This comparative review study contributed to knowledge in expanding the existing literature on cause and effect by focusing on the roles played by private, public, and international financial institutions and agencies in financing agriculture using multi-dimensional theories and methods to find what the causes are, why they occur, what groups are affected, how they cope in the absence of funds, and what measures to apply to improve agricultural finance.
Agricultural Financing and Economic Performance in Nigeria
Asian Journal of Agricultural Extension, Economics & Sociology, 2020
The Agricultural sector which used to be the mainstay of the Nigerian economy in the 1950s, 60s and early 70s is now conceived as a risky and unprofitable venture by financial institutions and government. This is because the financial institutions prefer to give funds to other sectors where payback period is short and return rate is high and also because the agricultural sector is inadequately funded by the government due to low budgetary allocation to the Agricultural sector over the years. The study examined the impact of Agricultural Financing on Economic Performance in Nigeria within the sampled period of 1978-2017. The study specifically attempted to assess the impact of Agricultural Financing on Economic Performance in Nigeria. The study which utilizes data through secondary sources from the Central Bank of Nigeria statistical bulletin were analyzed using the Unit root test, Bound Cointegration test and error correction modelling to empirically estimate the coefficient of para...
THE IMPACT OF AGRICULTURAL FINANCING AND ECONOMIC GROWTH IN NIGERIA
The Project work was carefully written and examined by Scholars. We are releasing this work as a tool to assist you in completing your project. In this project you will discover all you need to successfully carry out academic assignment. Good luck. 1 ABSTRACT Aside from the eradication of hunger, being one of the one of the Millennium Development Goals (MDGs), food security is an essential development strategy that a viable country must inculcate. As a result of the government agricultural credit policies of, this paper examined the provision of credit to agricultural sector along with the performance of the ACGSF while at the same time evaluating the food security status of Nigeria. It adopts the available data for the period 1978 to 2006 because of data uniformity. It finds out that though credit to the agricultural sector is significant it has not been growing relative to the economy. The ACGSF settled claims are negatively significant and the tardiness is observed in the claims process. The food security aspect shows that that Nigeria is food insecure as the import of food is on the rise as the tests show. Among the recommendations made to improve the current situation includes further enlightenment campaigns to bring the youth into agriculture and the management of the ACGSF by professionals. CHAPTER ONE
Effect of Government and Private Sector Financing on theAgricultural Sector in Nigeria
2018
The process of economic transformation and development calls for the participation of all interest groups in an economy hence this study set out to examine the effect of public and private sector finances on the development of the agricultural sector in Nigeria. The study employed an econometric procedure with the Ordinary Least Square regression technique. R-squared of 0.9921, obtained implied that 99.2 per cent of the variation in the agricultural sector real gross domestic product was explained by the six independent variables in the model. Loan granted to farmers under the agricultural credit guarantee scheme, commercial banks’ credit to the agricultural sector and Federal Government recurrent expenditure allocated to the sector impacted it positively, while the Federal Government capital expenditure allocated to the sector did not. It is recommended that all the policies put in place by the Monetary and Fiscal Authorities to encourage flow of funds to the agricultural sector be...
This study was to ascertain the effect of Central Bank of Nigeria Development banking through the Agricultural Credit Guarantee Scheme Fund (ACGSF) on the growth of agricultural sector of the Nigerian economy. The study employs the ex-post facto research design and data on credit to food crop, cash crop, livestock and food crop farming from 1981 to 2018. The data was sourced from the central bank money and credit statistics in the CBN website. The study used scatter plots and regression analysis in analyzing the data and testing necessary hypothesis.The results of the study reveal a positive relationship that exist between credit for cash crop farming and the growth of the agricultural sector. Similarly, a positive relationship was also found to exist between credits given for food crop farming and the growth of agricultural sector of the Nigerian economy. Credit to fish and livestock farming do not have significant effect on the growth of the agricultural sector of the economy. This means that even though, the overall credit to agricultural sector has significant effect on the growth of the sector, it is not all the aspect of the credit that contributed to such significant impact. This study therefore concludes that the credit granted to the various aspects of agricultural sector through the ACGSF is not yet yielding the desired effect as it is yet to show significant impact in some areas. It is therefore recommended that government should strengthen the mechanism and processes through which the credits are delivered and also broaden the scope and availability of such credits for maximum impact.
F1000Research, 2019
The ADPs were designed in response to a fall in agricultural productivity and hence a concern to sustain domestic food supplies. The study examined "Financing Agriculture in Nigeria through Agricultural Extension Services of Agricultural Development Programmes." It sought to ascertain the extent to which agricultural extension services of the agricultural development programmes have impacted the financing of agriculture in six selected local government areas in Edo South senatorial district, Nigeria using a sample of 120 respondents. Stratified random sampling was used to select the respondents. Interview schedule served as the research instrument. The research data were analyzed using t-test and Pearson correlation, which served as the inferential statistics. The research findings showed that the extension services of ADP have impacted significantly on crop development in the selected communities but have not had significant impact on employment creation and the development of infrastructural facilities. The study also revealed that there was no significant difference between the implementation of the projects in the selected communities, as revealed by the correlation test. On the basis of the research findings, the need for a complete redesign of the project to ensure that it achieves its stated goals as well as ensure proper monitoring of its implementation were suggested, among others.
AGRICULTURAL DEVELOPMENT AND FINANCING NEXUS FOR ECONOMIC GROWTH IN NIGERIA
IJARW, 2019
The indepth nature of the Nigeria agricultural sector and its resultant effect on the economy which have been moribund for years without meaningful gains. Thus, this study examined the impact of Agricultural policies and developments on the Nigeria economy. The study relied deeply on data from the CBN Annual Report and statement of Account, CBN Financial review, National Bureau of Statistics. The study adopted the Vector Error Correction Model (VECM) estimation in explaining the impact levels. The study found that Agricultural sector development has a significant effect on the Nigeria Economy and impacted Positively on it. The study among others recommend that Agriculture must be given a continued call and attention through policies and funding so as to enable the sector contribute meaningfully to the economy.
Role of Development Finance Institutions in Developing the Nigerian Agricultural Sector
This study investigates the role of development finance institutions (DFIs) in agricultural sector development in Nigeria. African Development Bank (AfDB), World Bank and International Development Association (IDA) were the underlying DFIs while agriculture value added formed the basis for measuring agricultural sector development. Data on the variables were sourced from World Development Indicators (WDI) and analyzed using error correction mechanism (ECM). The unit root test results indicate that all the variables are not stationary. However, they become stationary after first differencing and as such they all integrated of order one. The cointegration test results revealed that the variables have long run relationship. The result showed that the first and second lag of agriculture value added impacted negatively on its current. One-period lag of AfDB loan has significant positive relationship with current value of agriculture value added. The result showed that agriculture value added increased by 0.079 percent due to 1 percent increase in lag of AfDB loan. It was also found that the lagged values of World Bank and IDA loans exert significant negative impact on agriculture value added. The Parsimonious ECM revealedthat the model has an adjustment speed of 59.2 percent. Based on the findings, it is recommended that policymakers should prioritize the allocation of AfDB loans into productive sectors of the economy with particular emphasis on agriculture with a view to driving the development process in the real sector.