Assessing the Effects of Financial Inclusion on Agricultural Production in Nigeria: Insights and Implications (1999-2022)

The research examined the effect of financial inclusion on agricultural production in Nigeria from 1991 to 2022. Specifically, the study determined the effects of commercial bank loans and advances to the agricultural sector, deposits from rural branches of commercial banks, Agricultural Credit Guarantee Scheme Fund and interest rates on agricultural output in Nigeria. Annual secondary data were sourced from Central Bank of Nigeria Statistical Bulletin and Index Mundi Database. The data was analysed using the Autoregressive Distributed Lag Error Correction Model. The result showed that in the long run and short run, the independent variables agricultural credit guarantee scheme fund, commercial banks loans and advances to agricultural sector and interest rate had significant effect on agricultural output (PV < 0.05), whereas deposits of rural branches of commercial banks did not have significant effect on agricultural output (PV > 0.05) both in the long and short runs. The study recommended that loans from agricultural credit guarantee scheme funds be used for the agricultural purposes that they are aimed at so as to reduce the negative effect it had on agriculture within the study period.