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DISAGGREGATED DEPOSIT MONEY BANK CREDIT AND AGRICULTURAL SECTOR PERFORMANCE IN NIGERIA (1981-2022)

. Ezeoha Patrick, Ogbu , Onwumere .J.U.J, Okwor Emmanuel ,Ejimnkonye , Aniakor Cosmas .C, Ekwueme Chinedu , Okoro Kelechi .O


Abstract

The study sought to investigate the disaggregated impact of deposit money banks credit on the agricultural sector performance in Nigeria from 1981 to 2022. The disaggregated bank credit served as independent variable while the agricultural sector performance served as the dependent variable. The base year was established in 1981, marked by the national strike led by the Nigeria Labor Congress (NLC) during the military regime, resulting in a two-week cessation of commercial operations. The study identified and assessed peculiar areas of agricultural program and its percentage contribution to GDP unlike most of the empirical works so far reviewed in this context where agricultural sector is not disaggregated into crop, forestry, fishery and livestock so as to identify areas to channel financial resources more than others. Data were sourced from CBN bulletin and world development indicator. The specific objective is toL1) To examine the impact of ratio of agricultural credit to real gross domestic product on crop production output,(ii)To evaluate the effect of ratio of agricultural sector credit to real gross domestic product on forestry output, The result showed that (i) Ratio of agricultural sector credit to real gross domestic product have a positive and significant impact on crop production,(ii)Ratio of agricultural sector credit to real gross domestic product   have a positive and significant impact on forestry output. Based on the findings of this study, it is therefore recommended that (i) The government should improve its funding in the agricultural sector in order to grow the economy. The government should improve her budgetary allocation to agriculture at all level as this will improve the economy. (ii) Policy makers like the bank of industry, central bank of Nigeria should ensure that close supervision and adequate loans are provided for agricultural activities as this will help grow the economy.

Key wards: Deposit money banks , Agric Sector, Unit root, Cropping, Forestry, GDP

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