THE IMPACT OF CREDITS ON AGRICULTURAL OUTPUT IN NIGERIA

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THE IMPACT OF CREDITS ON AGRICULTURAL OUTPUT IN NIGERIA

Abstract

The present study examined the impact of credits on agricultural output in Nigeria over the period of 1978 to 2016. The data were sources from various edition of Central Bank of Nigeria Statistical Bulletin. Johansen cointegration test and Multivariate Ordinary Least Squares regression estimation were applied to the data to achieve the objective of the study. The findings of the study revealed no long-run relationship between deposit money bank credit to the agriculture sector in Nigeria and agriculture sector output. The findings of the study are further in line with a priori expectations as deposit money bank credit to the agriculture sector in Nigeria has a positive and significant impact on agriculture sector output in Nigeria. Therefore the Deposit money bank credit is a channel through which the Nigeria government can achieve a boost in the output of the Agriculture sector. This is more so in light of its renewed interest in reviving the sector.

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