On the account of assessing the performance of the Nigerian agricultural sector, this study puts in focus the relationship between agricultural funding-based contributions and performance of the Nigerian agricultural sector from 1986 to 2018, following the prescription of financial intermediation theory. It relies on ex-post facto research design, employs and makes use of data from the statistical bulletin of Central Bank of Nigeria, 2018 and Work Bank Economic Outlook 2019. Total government expenditure (TGE), agricultural credits (ACG) and foreign direct investment (FDI) serve as the independent variables; while crop production (CRP), livestock production (LSP), forestry production (FRP) and fishing production (FSP) represent the dependent variables. The study utilizes Jarque-Bera, Breush-Godfrey, Breush Pagan Godfrey, and Ramsey reset for normality tests, Augmented Dickey-Fuller (ADF) technique for stationarity test, Fully Modified Ordinary Least Square (FMOLS) and Engle-Granger Single Equation Co-integration Tests for the search of possible link between the sets of variables. From the analyses, the results of the study reveal that TGE and AGS are significantly and positively related to CRP, LSP and FSP while FDI maintains a negative relationship with them. On another hand, TGE and FDI have negative relationship with FRP, but AGS is positively related to FRP. The Co-integration analysis reveals that there is a long run relationship between all the variables used in the four models. On this basis, the study concludes that agricultural funding-based contributions have significant and long run relationship with the performance of the Nigerian agricultural sector. The paper recommends that government should strengthen agricultural credit guarantee scheme and increase expenditures on the sector.
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In-Text Citation: (Uzomba et al., 2020)
To Cite this Article: Uzomba, P. C., Peter Chika Uzomba, T. N., & Otokutu, O. P. (2020). Agricultural Funding-Based Contributions and Performance of Nigerian Agricultural Sector. International Journal of Academic Research in Business and Social Sciences, 10(1), 331–349.
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