TY  - JOUR
T1  - Impact of Bank Loans on Agricultural Output Growth in Nigeria
AU - Eyo, Emmanuel O. AU - Meriam, Nwogu 
JO  - The Social Sciences
VL  - 14
IS  - 6
SP  - 266
EP  - 275
PY  - 2019
DA  - 2001/08/19
SN  - 1818-5800
DO  - sscience.2019.266.275
UR  - https://makhillpublications.co/view-article.php?doi=sscience.2019.266.275
KW  - Commercial banks
KW  -microfinance banks
KW  -agricultural loans
KW  -agricultural output
KW  -AGDP
KW  -economic
development
AB  - This study evaluates the effect of lending by financial institutions on Agricultural Gross Domestic
Product (AGDP) in Nigeria from 1981-2016. The specific objectives of the study were to compare the volume
of loans to agricultural sector from commercial and microfinance banks, compare the impact of commercial and
micro finance loans on farm output, assess the impact of bank loans on agricultural sector output in Nigeria.
Data used were collected from Central Bank of Nigeria Statistical Bulletin, Annual Reports and National Bureau
of Statistics. The data were subjected to unit root, co-integration and error correction tests. The results show
that the commercial bank loan was consistently larger than that of the microfinance bank loans. The
microfinance bank loan to agriculture was consistently below 5% of the total loans over the period of this
study, commercial loans had a positive and significant impact both in the long-run (136.1508) and short-run
(11.4509) on agricultural output, the micro loans relate negatively with output, the number of commercial lenders
relate positively with agricultural output both in the short and long run periods where as the number of micro
finance banks had no significant effect on agricultural output both in the short but in long run periods. On the
whole, this study shows that agricultural loans impact positively on agricultural sector output but the extent
of that impact has not resulted in a steady and sustained growth that ensures the development of the sector
enough to support economic development.
ER  -