IMPACT OF AGRICULTURAL CREDIT GUARANTEE SCHEME FUND ON CROPS AND LIVESTOCK PRODUCTION IN NIGERIA: 1987 – 2020
S. Zakaree, A.A Alexander, Akor Helen Omele and Ayodeji Salihu
Volume 2 Issue 2
Abstract
The study examines the impact of Agricultural credit Guarantee scheme fund (ACGSF) on output of crop and livestock subsectors in Nigeria. Secondary data for the period of study(1987-2020) were sourced from Central Bank of Nigeria Publications and Statistical Bulletin of various years.Autoregressive Distributed Lag (ARDL) model was adopted to establish the impact of Agricultural Credit Guarantee Scheme Fund(ACGSF) credit to cropsub-sector, average annual rainfall and rural population( independent variables)on output of crop sub-sector(dependent variable);and the impact of ACGSF credit to cattle rearing, poultry,and sheep rearing(independent variable)on output of livestock subsector(dependent variable).The results revealed a positive and statistically significant impact of ACGSF on output of crop and livestock subsectors in Nigeria. It was found that ACGSF credit to cattle rearing led to an increase in output of livestock subsector by 29 per cent .Also, a percentage increase in ACGSF credit to poultry led to an increase in output of the livestock subsector by 11 percent and 1 percent increase in ACGSF loans led to a 10 percent increase in output of crop subsector. The ARDL results for both the crop and livestock sub-sectors indicate that output of both sectors respond to deviations from equilibrium such that if the short run variables deviate from equilibrium, they tend to re-adjust back to equilibrium in the long run. The implication is that credit advanced to the subsectors in the short run may only significantly affect output in the long run.The study therefore recommends among others that the scheme should be sustained and credit to farmers should be sustained over a given period in order to ensure increased output and ultimately ensure increased food supply. Key Words: Agricultural Credit Guarantee Scheme Fund; Livestock sub-sector; Crop sub-sector.
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