Keywords
Agricultural Total Factor Productivity
Partial Factor Productivity
Finance; Diversification
Nigeria
How to Cite
Abstract
The study examined the impact of enhanced agricultural credit flow under the ACGSF of the central bank of Nigeria (CBN) on the real gross domestic product (RGDP). Secondary data on RGDP, credit allocation to agriculture under the ACGSF (CrAgri), credit allocation to manufacturing (CrMnf), foreign direct investment (FDI), and market capitalization (Mcp) from 1990 – 2015 were collected from the National Bureau of Statistics (NBS), statistical Bulletins of the CBN, and the Nigerian Stock Exchange (NSE) for the purpose of analysis. The ordinary least squares (OLS) regression result showed that CrAgri, FDI, and Mcp were positively signed and statistically significant while CrMnf is negatively signed. Therefore, the study recommended, in addition to the CBN’s ACGSF and strategic financial interventions, there is need for adequate level of strategically targeted investments in rural infrastructures such rural roads, communication links, power supply, water, irrigation, storage facilities, modern farming implements and inputs such as fertilizers and improved seed varieties. Also, timely and adequate enlightenment of farmers on modern farming practices, techniques, and management skills are essential to amplify the potentials and productivity of farmers and by extension create more employment opportunities, increase the supply of food, livestock feeds, and industrial inputs as well as boost export earnings.
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