Agro-Financing and Agricultural Output in Nigeria

Abstract

This study examined the impact of agro-financing on agricultural output in Nigeria. The data for the study was sourced from the Central of Nigeria (CBN) Statistical Bulletin and the World Development Indicators (WDI) of the World Bank for the period between 1990 and 2019. The study applied the Canonical Cointegration approach to achieve its objectives. Findings showed that agro-financing significantly affect the level of agricultural output in Nigeria. The result of the econometric models estimated in this study showed that, on average, a 1% increase in agro-financing may increase agricultural output by between 0.12%. Therefore, the study recommended that more agro-funding at low-interest rates will motivate farmers to invest in high-yield seedlings, farm implements, organic inputs that are capable of positively impacting total yield leading to more output.