BANKING SECTOR FINANCING AND AGRICULTURAL SECTOR OUTPUT IN NIGERIA

Abstract

Credit from the banking sector is essential for agricultural output since it allows for investment, innovation, and efficient operation, all of which are necessary for high agricultural output. The main objective of the study is to examine banking sector financing and agricultural sector output in Nigeria. Specifically, the study examined the effect of bank loans and advances, lending rate, loans guaranteed under the ACGSF and the interaction between the repayment compliance rate of ACGSF on agricultural sector output in Nigeria. The study employed ex-post factor research design. The secondary data was analyzed using Augmented Dicker Fuller Text for Unit Root and The Ordinary Least Square analysis. The findings of the study revealed that there is no significant positive effect of bank loans and advances on agricultural output in Nigeria. There is no significant positive effect of lending rate on agricultural output in Nigeria. There is significant positive effect of the value of loans guaranteed under the ACGSF on agricultural sector output. There is significant positive interaction between the repayment compliance rate of ACGSF and agricultural sector output in Nigeria. It is therefore recommended that low-interest rates should be maintained to increase access to bank loans for agricultural output.