IMPACT OF DEPOSIT MONEY BANKS’ FACILITIES ON OUTPUT OF AGRICULTURAL SECTOR IN NIGERIA

Abstract

Agriculture is the mainstay of many economies and fundamental to the socio-economic development of a nation because it is a major element in national development. However, inadequate access to financial resources by the numerous sparsely located farmers across Nigeria continues to inhibit development of agricultural sector. As a result of these problems the study investigated the impact of deposit money banks’ facilities on agricultural sector in Nigeria. Specifically, the study examined the impact of deposit money banks’ loans and advances on agricultural output in Nigeria and also evaluated the effect of deposit money banks’ lending rates on agricultural output in Nigeria. The study employed secondary data which was obtained from the Central Bank Statistical Bulletin 2016. First least square regression analysis was used to achieve the objectives of the study. Results of the study revealed that banks loans and advances impact significantly on the growth of agricultural sector in Nigeria with coefficient value of 0.292608 and at 5% significant level. The study concluded that banking institutions facilities have significant impact on growth of agricultural sector in Nigeria. The study therefore recommends that policy makers should put in place policy measure that will help to improve and increase the loan by the commercial banks to the agricultural sector.