IMPACT OF THE AGRICULTURAL CREDIT GUARANTEE SCHEME FUND ON AGRICULTURAL PRODUCTIVITY IN NIGERIA 1981-2020

Authors

  • Felix A. Jam Department of Accounting and Finance, Joseph Sarwuan Tarka University, Makurdi Benue State Nigeria
  • Prof. I. N. Tsegba Department of Accounting and Finance, Joseph Sarwuan Tarka University, Makurdi Benue State Nigeria
  • Dr. E. K. Aondoakaa Department of Accounting and Finance, Joseph Sarwuan Tarka University, Makurdi Benue State Nigeria

DOI:

https://doi.org/10.53555/ms2yf172

Keywords:

Agricultural Credit Guarantee Scheme Fund, Agricultural Productivity, Livestock, Fishery, Crop, Forestry

Abstract

This study ascertains the impact of the Agricultural Credit Guarantee Scheme Fund on Agricultural Productivity in Nigeria 1981-2020. The ex-post facto research design was adopted for the study. Secondary data obtained from the Central Bank of Nigeria Annual Statistical Bulletin was used for the study. Jarque Bera test statistics was used to check for data normality while the Augmented Dickey Fuller test (ADF) was used to check the stationarity of the data. Johansen co-integration and error correction model was used to estimate the nexus that exists between the variables of the study. Findings from the study revealed that in the longrun, volume of funding to crop sector (FCP) has a positive effect on the output of crops and the effect is statistically significant.  Volume of funding to livestock (FCP) is positively signed and in line with a priori expectation. Volume of funding to fishery (FFS) has positive effect on output of fishery within the period under study and this effect is in line with a priori expectation. Finally, volume of funding to forestry (FFT) is positively signed and in line with a priori expectation. The researcher concluded that quality credit to the agricultural sector is very important in both long and shortrun as agriculture plays a vital role in the life of people especially in developing countries such as Nigeria. It was recommended among others that more funding be dedicated by government to improve productivity while policy geared towards improving funding in the shortrun should be aggressively pursued by the government so as to achieve an equilibrium of positive effect of funding in both the long and shortrun period for the four sectors examined.

References

. Agu, C.C. (1998). Loan management of Agriculture” Readings in Agricultural Finance, 8 (1) 8-12.

. Akaninyene, N., & Sunday, O. (2017). Examining the Relationship Between ACGSF and Crop Sector, Livestock, and Fishery Output in Nigeria: A Multiple Linear Regression Analysis. Journal of Agriculture and Social Research (JASR), 8(2):45-66.

. Central Bank of Nigeria CBN (2009). Comprehensive Guidelines for Banks and State Governments:Guidelines for Large Scale Agricultural Credit Scheme LASACS” Central Bank of Nigeria, Abuja.

. Central Bank of Nigeria CBN (2015). Microfinance policy, regulatory and supervisory framework forNigeria, Abuja. Nigeria, 22-25.

. Central Bank of Nigeria, CBN (2010). Annual Report and Statement of Account December Abuja,Nigeria, 17-21.

. Chauvin, N., Mulangu, F. & Porto, G. (2012), Food production and consumption trends in sub-saharan Africa: Prospeects for the Transformation of the agricultural sector, UNDP Working Paper for African Human Development Report.1-74.

. Enenche, E.O., Ohen, S.B and Umeze, G.E. (2014), The effect of agricultural credit guarantee Scheme fund (ACGSF) on production efficiency of rural farmers in Benue state-Nigeria, Global Journal of Science Frontiers Research: Agriculture and Veterrinary, Vol.14, Issue 10(1.0)

. Falola, T. & Heaton, M. (2008). A History of Nigeria. New York; cambridge university press. Pp 183

. FMARD (2017). National food security programme; Federal Ministry of Agriculture and RuralDevelopment (FMARD), Abuja.

. Isiorhovoja, R.A and Chukwuji, C. O (2009). Effects of the Operations of the Agricultural Credit Guarantee Scheme Fund on Cash Crops.International Journal of Rural Studies (IJRS) 16(1), 1-7

. Mafimisebi, T. E., Oguntade, A. E. &Mafimisebi, O. E (2008), “A Perspective on Partial CreditGuarantee schemes in Developing Countries: the case of the Nigerian AgriculturalCredit guarantee scheme fund (ACGSF)” A Paper presented at a World Bank conference at Washington D.C from March

. Manyong, V. M., Ikpi, A., Olayemi, J.K., Yusuf, S.A., Omonona, B.T., Okoruwa, V. &Idachaba, F.S. (2005). Agriculture in Nigeria: Identifying opportunities for IncreasedCommercialization and Investment. A Paper presentation at the International Institute for Tropical Agriculture, Ibadan.

. Nzeka, U. (2013). Grain and Feed Annual; Annual Report 2013.USDA. Retrieved from http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Grain%20and%20Feed%20Annual_Lagos_Nigeria_5-23-2013.pdf:USDA

. Onwumere, A., Imo, C., &Ihegboro, C. (2012). The Impact of ACGSF on Productivity in Crops, Livestock, and Fishing: A Comparative Analysis. Journal of Economics and Sustainable Development; 4(16): 1-5.

. Oyeronke A.A., Bolarinwa T.O., (2017). Analysis of the Performance of the Agricultural Credit Guarantee Scheme Fund in Nigeria (1981 to 2016). IOSR Journal of Agriculture and Veterinary Science (IOSR-JAVS). 10(10): 24-30

. Saxon, E. A. (1965). Concept of Productivity. Agricultural Productivity, 6,112 – 120.

. Shafi, M. (1984) Agricultural Productivity and Regional Imbalances. New Delhi: Concept publishing company.

. Udeorah, S.F. and Vincent, M.O. (2018). Agriculture Financing and Performance of the Agricultural Sector in Nigeria, 1981-2015.International Journal of Research in Computer Application & Management, 8 (01):36-42.

. Udoh E. (2011). An Examination of Public Expenditure, Private Investment and Agricultural Sector Growth in Nigeria: Bounds testing approach. International Journal of Business &Social Science. 2011; 13(2): 285-292.

. World Bank (2022). Agricultural Development Projects in Nigeria”, The World Bank Group,

. Yakubu, M. (2008). The Impact of Oil on Nigeia’s Economy: The Boom and Bust Cycles. Bullion Central Bank of Nigeria, 32 (2):41-50

Downloads

Published

06-10-2023

How to Cite

Jam, F. A. ., Tsegba, P. I. N. ., & Aondoakaa, D. E. K. . (2023). IMPACT OF THE AGRICULTURAL CREDIT GUARANTEE SCHEME FUND ON AGRICULTURAL PRODUCTIVITY IN NIGERIA 1981-2020. Journal of Advance Research in Business, Management and Accounting (ISSN: 2456-3544), 9(9), 10-15. https://doi.org/10.53555/ms2yf172

Similar Articles

11-20 of 35

You may also start an advanced similarity search for this article.