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AGRICULTURAL FUNDING EFFECT ON NIGERIA ECONOMIC GROWTH (2000 – 2020)

. Adesiyan Olusegun Israel, Alawode Damilola Motunrayo, Okunola,Solomom Olufemi


Abstract

This study exploits Agriculture Funding Effect on Nigeria Economic Growth within the study period of 2000-2020.This study is at the backdrop of declining in the share of Agricultural GDP, despite seemingly robust agricultural budgetary allocation and various funding sources. Data were gathered from the World Bank, National Bureau of Statistics. Variables: Gross Domestic Product (GDP), Agricultural Output (AOT), Credit Size (CS), Interest Rate (INT), Commercial Bank Credit (CBA) was employed for the study. Augumented Dikey Fuller (ADF) test of stationarity (Unit Root Test) show that all the variables were stable at the first differencing.

The ordinary Least Square (OLS) analytical method was used to capture the influence of the independent variables on the dependent variable. The results show that all other independent variables are positively significant to GDP, except Interest Rate (INT), which is has negative effect on the Nigerian economic growth. Its evidently shown that Nigerian economic growth will be more enhanced if financing/funding of agricultural sector is given a deserved attention. Hence the study recommends that an achievable and viable agricultural policies that will spur productivity should be put in place, this will encourage the youths in engaging in agricultural activities.

Key words: agriculture, funding, economic , budgetary, growth

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