Agricultural financing and economic growth in Nigeria: implications for sustainable agricultural development

Abstract

The significance of agricultural financing for sustainable agricultural and financial improvement in emerging economy like Nigeria cannot be over emphasized. This re-search work analyzed the impact of rural financing on financial sustainability in Nigeria. The dataset is time series information variables spreading a 40 year period, from 1981 to 2020. Annual aggregates data on capital expenditure, agricultural credit, ex-port loans, and gross domestic product (GDP) were sourced from the distributions of Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS). The research was conducted in 2023 and data sets were analyzed using Unit Root test, Cointegration test, and error correction model. Results revealed that agricultural credit, export financing, and capital expenditure affect GDP positively in Nigeria. Therefore, there is need for policy formulation and implementation on arrangement of satisfactory funding facilities to agricultural production and export sector with moderate interest rates at a minimal cost of capital. Government should also embark on massive infra-structural development in order to enhance sustainable financial growth and development.