Deposit Money Banks’ Credit and Agricultural Sector Performance in Nigeria

Ekine, Data Irene; ONUKWURU, Fyneface Manunyewho

doi:10.15580/gjas.2018.3.031218042

Cited by 6 publications

(4 citation statements)

References 7 publications

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“…The contribution of the banking system towards the growth of an economy is primarily credited to the role it plays in savings mobilisation and allocation of resources to deficit sectors of the economy [1]. The banking sector through financial intermediation, mobilises savings from surplus units in the economy and channels same to deficit units thus entrepreneurs' access to credit is actualise by the ability of the banking system to mobilise savings from savers with no pressing requirements for funds [2]. Fapetu and Adefemi [3] endorsed that Nigerian deposit money banks should be more favourably disposed to extending more credits to production subsectors namely agriculture, manufacturing, mining, quarrying, real estate and construction.…”

Section: Introductionmentioning

confidence: 99%

Sectoral Allocation of Deposit Money Banks’ Credit and the Growth of Nigerian Real Economy: A Disaggregated Analysis (2008Q1 – 2017Q4)

Ubesie

Echekoba

Chris-Ejiogu

et al. 2018

JEMT

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In this study, the effect of sectoral allocation of deposit money banks' credit on the growth of the Nigerian real economy from 2008Q 1 to 2017Q 4 was evaluated. We were inspired by the unsettled disparity in empirical literature on the effect of sectoral allocation of deposit money banks credit on the growth of the real economy. Specifically, we ascertained the effect of deposit money banks' sectoral credit on agricultural, industrial, building & construction and wholesale & retail trade Original Research Article

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Section: Introductionmentioning

confidence: 99%

Sectoral Allocation of Deposit Money Banks’ Credit and the Growth of Nigerian Real Economy: A Disaggregated Analysis (2008Q1 – 2017Q4)

Ubesie

Echekoba

Chris-Ejiogu

et al. 2018

JEMT

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“…Bassey, Ibok, and Amba (2014) result revealed presence of co-integration and shows that past value of gross domestic product exerted significant positive impact on agricultural output. No strong association had been found between deposit money banks' credit and the performance of agricultural sector in Nigeria in the study of Ekine and Onukwuru (2018). No asymmetry in the impact of credit to output growth has been found by Olorunsola, Olowofeso, Adeboye, Adejo, Bassey and Ochoche (2017) for the short-run not for long run.…”

Section: Empirical Reviewmentioning

confidence: 83%

Credit Financing and Agricultural Growth in Nigeria

Ajao¹,

Cole²,

Keng³

2020

theijbm

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Agriculture is key to the industrial development of any nation this is because in addition to providing food security for the population, it also provides raw materials which industries depends upon for the production of goods and services. As indicated by Ijaiya (2005) regardless of the power of the oil and gas area in Nigeria, agricultural sector despite everything stays as one of the significant bases of financial strength in the economy. From late 1950s to mid-1960s, Nigerian economy was mainly dependent on agriculture. It contributed more than 65% of the nation's Gross Domestic Product (GDP) and a significant portion of the foreign exchange earnings. This sector has most significant parts of Nigeria's economy as it holds a ton of possibilities for future monetary improvement of the country having assumed driving job in the far-off past. With the coming of oil as a significant source of government revenue and foreign exchange earner, agriculture has been overlooked which prompted the drop of the sector's commitment to the economy. Development in the agricultural sector is two to four times more effective in raising incomes among the poorest compared to other sectors and also crucial to economic growth (Okoh, Amadi, Ojiya and Ani, 2019) Albeit Nigerian relies vigorously upon the oil business for its budgetary incomes, the nation is transcendently still an agrarian culture with around 70% of the populace taking part in agricultural creation at a subsistence level. In light of the fluctuating climatic states of places and the tremendous and rich soil, the nation produces mixtures of crops while a significant portion of the agricultural sector in Nigeria involves livestock productions, fishing, poultry and lumbering, hence agricultural products were major export product in the 1960s and mid-1970s (CBN, 2013). The agricultural dedication to the GDP in spite of proper fund provides a scope for farm capital investment (Ali, Jatau and Ekpe, 2016). This study has an objective to check the effect of credit financing and agricultural growth in the form of deposit money banks' credit in Nigeria.

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“…The results demonstrated that bank credits had a positive impact on agricultural productivity. Ekine and Onukwuru (2018), using secondary data, investigated the impact of deposit money bank credit on the performance of the agricultural sector in Nigeria from 1986 to 2016. The study used descriptive statistics, Ordinary Least Squares (OLS), unit root test, co-integration, and ECM approaches as analytical techniques.…”

Section: Empirical Review Of Related Literaturementioning

confidence: 99%

Credit Financing and Agricultural Sector Performance in Nigeria (1989–2019)

Olasode, Esther Modupe,

Okwu, Andy T,

Lawal, Esther O

2023

theijbm

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Providing people with a good standard of living through food consumption, businesses with employment opportunities, and the government with tax revenue through product exports, as well as creating an environment that is favorable for the economy to flourish, determines how well the agricultural sector is performing. Due to insufficient funding, excessive interest rates, and poor policy measures, the agricultural sector's performance continues to suffer. Therefore from 1989 to 2019, the study examined the impact of credit finance on agricultural performance in Nigeria. An ex-post facto research design was used in the study. The study made use of Time series data. The data were obtained from Central Bank of Nigeria (CBN) statistical bulletin. The study employed descriptive statistics, unit root test, co-integration, bound test, and Auto regressive Distributed lag models, and inferences were made at 5 percent significant level. The study showed that Deposit money banks credit to the Agricultural sector was positively related and significant to agricultural sector performance in Nigeria (β=0.759; P=0.004), while government expenditure on agriculture was positively related and significant to agricultural sector performance in Nigeria (β=0.598; P=0.0002) and interest rate posits a positive but insignificant effect on agricultural sector performance in Nigeria (β=0.1507, P=0.580) within the observed period. The study concluded that deposit money banks' credit to the agricultural sector and government expenditure on the agricultural sector has positively influenced agricultural sector performance, while interest rate on deposit money banks' credit does not have a significant effect on agricultural sector performance. It was recommended that Commercial banks should establish a panel examining committee to make sure that the money distributed is rigorously used for its intended purpose and is not diverted in any way. The delay and strict requirements in assessing deposit money banks' credit and facilities should be overhauled.

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Deposit Money Banks’ Credit and Agricultural Sector Performance in Nigeria

Cited by 6 publications

References 7 publications

Sectoral Allocation of Deposit Money Banks’ Credit and the Growth of Nigerian Real Economy: A Disaggregated Analysis (2008Q1 – 2017Q4)

Sectoral Allocation of Deposit Money Banks’ Credit and the Growth of Nigerian Real Economy: A Disaggregated Analysis (2008Q1 – 2017Q4)

Credit Financing and Agricultural Growth in Nigeria

Credit Financing and Agricultural Sector Performance in Nigeria (1989–2019)

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