Agricultural Credit Guarantee Scheme Fund and Agricultural Productivity in Nigeria
Abstract
The study examined the effects of the Agricultural Credit Guarantee Scheme Fund on agricultural productivity in Nigeria. The specific objective was to examine the effect of the Agricultural Credit Guarantee Scheme Fund (cash crops) on agricultural output in Nigeria. The analytical methodology used in this study was ordinary least squares (OLS) estimation within the framework of a vector error-correction mechanism (VECM). Based on the results, the Agricultural Credit Guarantee Scheme Fund (cash crops) had a negative and insignificant effect on agricultural output in Nigeria. The study recommended that farmers form cooperatives to obtain inputs at reduced cost. Furthermore, government recurrent expenditure on agriculture should be increased to improve agricultural productivity, and both commercial banks and the federal government should mobilize more financial resources for the agricultural sector to enhance productivity, thereby guaranteeing maximum agricultural output in Nigeria.