The Contribution of Deposit Money Banks on the Growth of the Agricultural Sector in Nigeria

Arikpo, Oka Felix; Ogar, Anthony; Gabriel, Enya Emori

doi:10.14738/abr.32.1009

Cited by 6 publications

(3 citation statements)

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“…This will help to boost economic activities within the country because lack of capital retards investment. Anthony, Gabriel, and Arikpo (2015) investigate the effect of deposit money banks credit on the growth of the agricultural sector in Nigeria between the periods 1988 to 2011. They used the ordinary least squares method of multiple regression to analyze the data.…”

Section: Empirical Literaturementioning

confidence: 99%

Deposit Money Banks’ Credit and Agricultural Sector Performance in Nigeria

Ekine¹,

ONUKWURU²

2018

GJAS

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The study empirically examines the effect of deposit money banks credit on agricultural sector performance in Nigeria from 1986 to 2016. The data for the empirical analysis was sourced from secondary data sources various issues of the CBN statistical bulletin. The study used agricultural sector output (ASP) to proxy agricultural sector performance as the dependent variable whereas Deposit Money Banks' Credit to Agricultural Sector (BCA) was the major explanatory variable while Interest Rate (INR) and Government Expenditure on Agriculture (GEA) are the check regressors as to enhance the explanatory power of the model. The study employed descriptive statistic, Ordinary Least Squares (OLS), unit root test, co-integration and ECM methods of analysis as the analytical tools. The results revealed that there is no co-integrating (or long run) relationship between deposit money banks' credit to agricultural sector and the performance of agricultural sector in Nigeria during the period of study; Deposit money banks' credit to agricultural sector (BCA) had a positive and a significant impact on Agricultural Sector performance (ASP); Interest Rate (INR) had a negative insignificant relationship with Agricultural Sector performance (ASP). Also, the study revealed that government expenditure on agricultural sector (GEA) had a positive insignificant relationship on Agricultural Sector performance (ASP). Consequent upon the above, it is recommended that efforts should be made by the government and private individuals to encourage or increase investment in the agricultural sector. The lending rate on loans to the agricultural sector should be reviewed and fixed at a rate that would encourage farmers to acquire loans from deposit money banks.

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Section: Empirical Literaturementioning

confidence: 99%

Deposit Money Banks’ Credit and Agricultural Sector Performance in Nigeria

Ekine¹,

ONUKWURU²

2018

GJAS

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“…Moreover, Innumerable policies have been made accessible to provide agricultural finance assigned to commercial banks to provide to loans and advanced to farmers. Nevertheless, the part has not been able to grab as a result of higher interest rates charge with conditions of collateral (Anthony et al, 2015). The assessment of commercial bank in the area of loans and advances can be measured via monetary policy tools and market intervention portfolio (Jegede, 2014).…”

Section: Introductionmentioning

confidence: 99%

Monetary Policy and Commercial Banks’ Credit to Agricultural Sector: A Study of Nigeria

Tajudeen Idera Abdulmajeed,

Salihu Liman Mairafi, PhD,

Yahya Uthman Abdullahi, PhD

2023

UMYU-JAFR

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This study examines the relationship between monetary policy and commercial banks credit to agricultural sector in Nigeria with uses of secondary data for the period 1981 to 2021 by applying Autoregressive Distributed Lag technique. Result from this study shown that, liquidity ratio, monetary policy rate, loan to deposit ratio and cash reserve ratio have no significant influence on commercial banks credit to agricultural sector in Nigeria. On the other hand the treasury bill ratios has significant positive effect on commercial banks credit allocated to agricultural sector in Nigeria. The study therefore recommends that Central Bank of Nigeria should cuts down the cash reserve ratio to encourage the loanable funds available with the banks. Regulatory authority should put in place suitable policy that will prevailing cash hoarding in the economy to achieve desired liquidity ratio level. CBN should use the loan to deposit to center for regulating and moderating commercial banks for a positive significant impact to sectors in Nigeria. Authorities should use monetary policy rate to expand the volume of commercial banks’ ability to grant credits. Finally, monetary policy authority should ensure that holding of treasury bills by commercial banks should be reduced to enhance the ability to grant loans and advances to the public for productive purposes. .

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“…The level of economic development of an economy is influenced by a number of elements, including the endowment of natural resources, technical know-how, the supply of trained labor, and, of course, capital resources (Ogege and Shiro, 2013). The functions performed by deposit money banks are encouragement of savings, provision of capital needed for development, encouragement of trading activities through the use of cheques, encouragement of investment, provision of managerial advice to industrialists who do not engage the services of specialists and rendering financial advice (Ogar, Gabriel and Arikpo, 2015). Results from earlier studies showed that the topic under study had a variety of results.…”

Section: Introductionmentioning

confidence: 99%

Deposit money bank’s credit to private sector and economic growth in Nigeria

Muhammad

Ngele

2023

JGSS

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In this study, the empirical impact of loans to the private sector on Nigeria's economic growth from 1981 to 2021 is evaluated. The impact of CPS on Gross Domestic Product Growth (GDPG) was examined using series data and the ordinary least squares technique. Credit to the private sector, lending rate, and deposit money bank's assets were used as independent variables. The series' data were taken from the World Bank Indicators 2021 and the Central Bank of Nigeria's Statistical Bulletin 2021. The analysis's findings indicate that all of the variables, including Gross Domestic Product (GDPG), CPS, INTR, and DMBA, were stationary at 1st difference. The analysis discovered that the variables are cointegrated, which means they have a long-run link, even though interest rate was statistically proven to have a negative impact on economic growth. As a result, the study advises policymakers to adopt measures that will direct more money into the economy's productive sectors, and banks should act as effective financial intermediaries so that financial resources are allocated to the most productive uses in order to boost economic growth in Nigeria.

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The Contribution of Deposit Money Banks on the Growth of the Agricultural Sector in Nigeria

Cited by 6 publications

References 0 publications

Deposit Money Banks’ Credit and Agricultural Sector Performance in Nigeria

Deposit Money Banks’ Credit and Agricultural Sector Performance in Nigeria

Monetary Policy and Commercial Banks’ Credit to Agricultural Sector: A Study of Nigeria

Deposit money bank’s credit to private sector and economic growth in Nigeria

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