Impact of Agricultural Financing on Nigeria Economy

Abstract

The importance of agricultural surplus for the structural transformation accompanying economic growth is often addressed by development economists. In view of this, the study empirically assesses the impact of agricultural finance on the growth of Nigerian economy. This paper employed secondary data and econometric techniques of Ordinary Least Square (OLS) of multiple regression estimates. The result of the model used suggests that the productivity of investment will be more appropriately financed with resources administered by the commercial and specialized financial institutions. And also, that there are an urgent and sincere needs to expand the credit size to the agricultural sector in order to enhance the productivity growth of the sector. It is recommended that maintenance of credible macroeconomic policies that is pro-investment in overhauling the Agricultural Sector and debt-equity swap option are necessary for an agricultural-led economic growth.