Agricultural Credit Programmes and Economic Growth: Evidence From Nigeria

Abstract

Abstract
This study examined the relationship between agricultural credit programmes and economic growth in Nigeria, using the autoregressive distributed lag (ARDL) approach with annual data from 1987 to 2021. Data were obtained from the Central Bank of Nigeria Statistical Bulletin and the World Development Indicators database. The primary aim was to assess the impact of crop production, food production, and livestock production on Nigeria's economic growth. After conducting several empirical tests, the results confirmed a short-term link between food production, livestock production, and economic growth. They also show that all explanatory variables collectively account for short-term fluctuations in Nigeria's economic growth. Further analysis of the ARDL short-term estimates indicated that changes in crop production and livestock production during the current and previous periods had a positive effect on Nigeria's short-term economic growth. Conversely, variations in food production during the current and previous periods had a negative impact on economic growth. The study concludes that a significant long-term relationship exists between agricultural production and Nigeria's economic growth. Therefore, it recommends that the government implement sound macroeconomic policies to maximise the benefits of the agricultural sector and promote economic growth in Nigeria.