The Role of Agricultural Credit Financing on Agricultural Output in Nigeria (1990–2022)

Agricultural credit finance is seen as the pathway to persistent increase in agricultural output. This study empirically investigates the role of agricultural credit financing on agricultural output in Nigeria from 1990 to 2022 using annual time series data. The study employed econometrics techniques such as Descriptive Statistics, Augmented Dickey-Fuller Unit Root Test, Granger Causality Test, and Ordinary Least Square Estimation Method of analysis. Results and findings show that agricultural credit financing via commercial bank credits, government expenditures on agricultural sector, and agricultural credit guarantee scheme fund (ACGSF) has a positive significant effect on agricultural output and has contributed massively to the growth of agricultural output and productivity in Nigeria. It is therefore recommended that government and monetary authorities should formulate policies that will both increase and expand access to credit by farmers as it will further boost agricultural output, thereby fostering sustainable economic growth and development in Nigeria.