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The Effect of Commercial Banks Credit on Agricultural Sector’s Contribution to Real Gross Domestic Product: Evidence from Nigeria 1986 to 2020

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The Effect of Commercial Banks Credit on Agricultural Sector’s Contribution to Real Gross Domestic Product: Evidence from Nigeria 1986 to 2020


Dr. (Mrs) Victoria Obi-Nwosu | Amalachukwu Chijindu Ananwude | Chisom Njideka Ezeaku



Dr. (Mrs) Victoria Obi-Nwosu | Amalachukwu Chijindu Ananwude | Chisom Njideka Ezeaku "The Effect of Commercial Banks Credit on Agricultural Sector’s Contribution to Real Gross Domestic Product: Evidence from Nigeria 1986 to 2020" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-2, February 2022, pp.458-465, URL: https://www.ijtsrd.com/papers/ijtsrd49229.pdf

This study is an analysis of the effect of commercial banks’ credit to agriculture on the agricultural sector’s contribution to Nigerian real gross domestic product from 1986 to 2020. Specifically, this study ascertained the effect of commercial banks’ credit to agriculture, inflation rate and interest rate on the agricultural sector’s contribution to real gross domestic product. The Autoregressive Distributive Lag (ARDL) was the econometric tool of analysis employed using data sourced from the statistical bulletins of the Central Bank of Nigeria (CBN). The findings of this study in its totality unveiled statistically that commercial banks’ credit to agriculture does not affect the sector’s contribution to real gross domestic product. In the light of the findings, there is a critical need for commercial banks to increase loans to agricultural enterprises through a reduction in interest rate charge for agricultural purposes, which in turn permits for greater economic growth and development. The Central Bank of Nigeria can encourage this through a reduction in the monetary policy rate which inflicts the high interest rate charged by the commercial banks. The Central Bank of Nigeria can also appeal to the commercial banks to reduce their collateral requirements to encourage more farmers, especially the rural farmers to have access to finance for agricultural production.

banks credit; agricultural gross domestic product


IJTSRD49229
Volume-6 | Issue-2, February 2022
458-465
IJTSRD | www.ijtsrd.com | E-ISSN 2456-6470
Copyright © 2019 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0)

International Journal of Trend in Scientific Research and Development - IJTSRD having online ISSN 2456-6470. IJTSRD is a leading Open Access, Peer-Reviewed International Journal which provides rapid publication of your research articles and aims to promote the theory and practice along with knowledge sharing between researchers, developers, engineers, students, and practitioners working in and around the world in many areas like Sciences, Technology, Innovation, Engineering, Agriculture, Management and many more and it is recommended by all Universities, review articles and short communications in all subjects. IJTSRD running an International Journal who are proving quality publication of peer reviewed and refereed international journals from diverse fields that emphasizes new research, development and their applications. IJTSRD provides an online access to exchange your research work, technical notes & surveying results among professionals throughout the world in e-journals. IJTSRD is a fastest growing and dynamic professional organization. The aim of this organization is to provide access not only to world class research resources, but through its professionals aim to bring in a significant transformation in the real of open access journals and online publishing.

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