IMPACT OF GOVERNMENT AGRICULTURAL FUNDING ON ECONOMIC GROWTH IN NIGERIA (1981-2022)
Adebayo Hakeem Adegboyega, Ibrahim Agboola Sulaiman and Shamsuddeen Alhassan Musa
Volume 9 Issue 2
Abstract
The study assessed the impact of government agricultural funding on economic growth in Nigeria over the period of 1981-2022. The analysis of the data was done using ARDL model with the aid of E-views version 10. The analysis showed that all the series are not stationary as most macroeconomic variables. The diagnostics analysis conducted showed that the model designed passed serial and hetroskedasicity tests. The results obtained from the ARDL indicated that both in the short-run and long-run, agricultural credit guarantee scheme fund (ACGSFt) is positive and statistically significant. This implies a 1% increase in ACGSFt will lead to 2.83% and 0.25% increase in agricultural productivity in the long-run and short-run respectively keeping all other variables held constant. Also, commercial banks’ credit to agriculture (CBCAt) is statistically significant and positive in both the long-run and short-run at 5%.This implies an increase in CBCAt will lead to 0.12% increase in RAGDP in the long-run and 0.13% increase in RAGDP in short-run respectively keeping all variables held constants. Likewise, agricultural food prices (AFPt) is statistically significant and positive in both the long-run and short-run at 5% and this implies an increase in AFPt will lead to 24.9% increase in RAGDP in the long-run and 0.18% increase in RAGDP in short-run respectively keeping all variables held constants. Based on the findings of this study, the study recommends that Government is therefore called upon to reinforce its link with farmers in the provision of farm inputs and credit facilities that could be affordable to the farmers, through its agricultural extension workers. Keywords: Agricultural Funding; Economic Growth; Commercial Banks; ARDL
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