Agribusiness Finance and Agricultural Productive Growth in Nigeria

This study examines Agric-business finance and agricultural productivity in Nigeria. The period of this study spanned between 1990 to 2023. Utilizing the time series data obtained from the CBN statistical bulletin, Agric-business finance was measured by loans to the agriculture sector, loans for cash crop production, food production and loan for fishery as independent variables while agriculture contribution to GDP as explained variable. The data set obtained was estimated within the regression framework using the Autoregression Distributive Lage (ARDL). Findings revealed that both short and long run relationship exist between the regressant; agricultural productivity and the regressors (agricultural credits or loans). The study confirmed cyclical adjustment or delayed effect on agriculture productivity resulting from the gestation in agric investments. The lagged structure reveals that agric-credit impacts are not immediate but over lap in multiple years. Among all, cash crop production was found to exert much positive impact on agricultural productivity in current periods and beyond due to its potential export value. This revelation reinforces the view that credit targeted agriculture especially for food production contributes more. The study recommends among others; consistent and well-monitored credit disbursement strategies, sustained policy especially in food production and fishery to stimulate short term output and long-term sector development, long term capital with grace periods to account for the gestation period associated with agricultural investments. The need for policy maker to synchronize the planting and harvesting cycles in their credit formulation as this will help cushion the cyclical adjustment or delay effect in agricultural production etc.