Effects of Agro-allied Funding and Agricultural Productivity in Nigeria
Chapters One
Research Objectives
The major objective of this study is to investigate the impact of agro allied funding on the agricultural sector in Nigeria. Specifically, this study seeks to:
- To determine the effect of agro allied funding on agricultural productivity in Nigeria
- To determine if there is any long run relationship between agro allied funding and agricultural productivity.
- To determine if agricultural credit guarantee scheme fund influences agricultural productivity in Nigeria
For the objectives of this study to be achieved, we divided this study into five sections. The first section deals with the introduction, the second dwells on literature review while research methodology was captured in the third section. Data analysis and discussion of findings was captured in section four and finally, section five draws managerial implication.
CHAPTER TWO
LITERATURE REVIEW
The Role of Banks in Agricultural Financing
Finance is a crucial ingredient in all forms of development, yet the access to financial services such as savings and credit has been an issue of segregation among social strata in the society on socio-economic basis. Asabia (1981) noted that the banks have less interest toward providing credit facilities for financing agricultural activities because of the perception of high elements of risk involved. In Nigeria the formal financial system provides services to about 35 percent of the economically active population while the remaining 65 percent are excluded from access to financial services (CBN, 2005). Most farmers do not have adequate collateral to secure formal bank loans that would help their enterprises to grow and diversify. The banks on the other hand are profit making organisations and not charity rendering institutions. Olaitan (2006) reiterated that the lack of access to finance restrains growth amongst farmers in Nigeria, stressing that they are endangered species, and calls for a transformative effort to address the problem. For instance, the FinScope survey on Nigeria in 2008 revealed that 86 percent of rural adults are currently unbanked and just 15 percent of total farmers are banked (IPD, 2004). As earlier mentioned, a large proportion of the rural population depends on agriculture for their main source of sustenance and livelihood, yet the supplies of finance still leave a wide gap of rural access to finance. Hence, the lack of access to finance constitutes a socio-economic problem for agricultural performance. Most commercial banks that have experienced losses from untimely repayment of agriculture loans given to farmers seek to minimise defaults by choosing carefully the distribution of credit across farmers (Anderson, 1990). According to Duong and Izumida (2002), the supply of agricultural credit plays a critical role in agricultural development.
CHAPTER THREE
RESEARCH METHODOLOGY
The quasi-experimental research design (used to estimate the casual impact of an intervention on its target population without random assignment) which is a form of experimental research used extensively in the social sciences and psychology was adopted for this study. This type of research design employed empirical estimation techniques in estimating the causal relationship between the explanatory variables and the explained variable. In particular, the study adopts both descriptive and analytical methodologies in analyzing and in the estimation of the relevant relationships.
The descriptive methodology employs statistical tools such as simple tables, graphs, percentages and correlation analysis in analyzing trend performances of the variables captured in the study and examining the degree of relationship among the variables. The analytical methodology in this study was the ordinary least square (OLS) estimation techniques in estimating the relevant data. Times series data were collected on annual basis on the macroeconomic variables captured in the model.
CHAPTER FOUR
DATA ANALYSIS AND DISCUSSION OF FINDINGS
Co-integration Test
The engle and granger two method was adopted, in doing this the null hypothesis of no co-integration is accepted when probability of tau stat is more than 0.05. Table 4.2 gives the summary of the above conducted test.
CHAPTER FIVE
SUMMARY, RECOMMENDATION AND CONCLUSION
Summary
The main aim of this work is to find out the Effects of Agro Allied funding and Agricultural productivity in Nigeria covering from the year 1981-2015. The study has three objectives. On the basis of the facts presented in the literature review. Empirical investigations were carried out on the Effect of Agro allied Funding and Agricultural Productivity in Nigeria. The specified model was estimated using the OLS and Eview9 which is a statistical software used in computing result.
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