THE CONTRIBUTION OF DEPOSIT MONEY BANKS ON THE GROWTH OF THE AGRICULTURAL SECTOR IN NIGERIA
DOI:
https://doi.org/10.14738/abr.32.1009Abstract
The objective of this study was to investigate the role of deposit money banks credit on the growth of the agricultural sector in Nigeria between the periods 1988 to 2011. An ex-post facto research design was used for the study. Three research objectives were formulated. Data were sourced principally from the secondary sources and was collected from the CBN Statistical Bulletin. The Data were analyzed using the ordinary least square multiple Regression Statistical Technique. Result from the analysis revealed that both deposit money banks loans and the agricultural credit guarantee scheme fund had a positive relationship with the output of the agricultural sector. It was however discovered that agricultural credit guarantee scheme fund's relationship was insignificant. It was finally revealed that deposit money bank lending rate had a negative and insignificant relationship with the output of the agricultural sector in Nigeria. Based on these findings, it was recommended that the loans and finances to the agricultural sector should be increased while the lending rate should be reduced. Also, the conditions to be fulfilled by farmers before accessing the agricultural credit guarantee scheme fund should be reviewed.
Keywords: Deposit money bank; credit; loan and total agricultural output
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