Banking Sector Reforms and Agricultural Sector Performance in Nigeria

Yekeen Oku. Abdul-Maliq; Jude Igyo Ali; Henry Yua

doi:doi:10.11648/j.jbed.20210603.17

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Banking Sector Reforms and Agricultural Sector Performance in Nigeria

Yekeen Oku. Abdul-Maliq, Jude Igyo Ali, Henry Yua

Published in Journal of Business and Economic Development (Volume 6, Issue 3)

Received: 14 August 2021 Accepted: 26 August 2021 Published: 23 September 2021

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Abstract

This paper examines the effect of banking sector reforms on the growth of agricultural output in Nigeria from 1986 to 2019, with the specific objective of determining the extent to which aggregate bank credit to the agricultural sector (ABCAS), which was expected to be occasioned by banking sector reforms, in conjunction with other reform variables, impacted output growth in the agricultural sector in the period under study. The study utilizes 34 years annual time series data obtained from NBS and CBN data bases. Two-Stage Least Squares (2SLS), technique, Breusch–Godfrey LM test of autocorrelation and the ARCH test were used to ascertain the short and long run relationships among ABCAS, DMBLDR, IRS and ASOP. Hypotheses are tested at 5% level of significance. Results show that 96% of the variation in the dependent variable, judging by the Adjusted R², is attributable to the combined effect of the independent variables. Analysis also reveals that aggregate bank credit to the agricultural sector, (ABCAS), and real effective exchange rate, (REER), exhibit positive and significant relations with agricultural output growth with co-efficient of 29.01 and 33.10 respectively. The study therefore canvasses for banking system structure that prioritizes agricultural financing anchored on manufacturing: – (agro-business; focus), to engender agricultural value-chain creation and enhancement, preferably targeting export of finished agro-allied products.

Published in	Journal of Business and Economic Development (Volume 6, Issue 3)
DOI	10.11648/j.jbed.20210603.17
Page(s)	176-183
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Aggregate Bank Credit, Agricultural Sector, Agric Sector Output, Interest Rate Spread, Reform

References

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APA Style

Yekeen Oku. Abdul-Maliq, Jude Igyo Ali, Henry Yua. (2021). Banking Sector Reforms and Agricultural Sector Performance in Nigeria. Journal of Business and Economic Development, 6(3), 176-183. https://doi.org/10.11648/j.jbed.20210603.17

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Yekeen Oku. Abdul-Maliq; Jude Igyo Ali; Henry Yua. Banking Sector Reforms and Agricultural Sector Performance in Nigeria. J. Bus. Econ. Dev. 2021, 6(3), 176-183. doi: 10.11648/j.jbed.20210603.17

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AMA Style

Yekeen Oku. Abdul-Maliq, Jude Igyo Ali, Henry Yua. Banking Sector Reforms and Agricultural Sector Performance in Nigeria. J Bus Econ Dev. 2021;6(3):176-183. doi: 10.11648/j.jbed.20210603.17

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@article{10.11648/j.jbed.20210603.17,
  author = {Yekeen Oku. Abdul-Maliq and Jude Igyo Ali and Henry Yua},
  title = {Banking Sector Reforms and Agricultural Sector Performance in Nigeria},
  journal = {Journal of Business and Economic Development},
  volume = {6},
  number = {3},
  pages = {176-183},
  doi = {10.11648/j.jbed.20210603.17},
  url = {https://doi.org/10.11648/j.jbed.20210603.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20210603.17},
  abstract = {This paper examines the effect of banking sector reforms on the growth of agricultural output in Nigeria from 1986 to 2019, with the specific objective of determining the extent to which aggregate bank credit to the agricultural sector (ABCAS), which was expected to be occasioned by banking sector reforms, in conjunction with other reform variables, impacted output growth in the agricultural sector in the period under study. The study utilizes 34 years annual time series data obtained from NBS and CBN data bases. Two-Stage Least Squares (2SLS), technique, Breusch–Godfrey LM test of autocorrelation and the ARCH test were used to ascertain the short and long run relationships among ABCAS, DMBLDR, IRS and ASOP. Hypotheses are tested at 5% level of significance. Results show that 96% of the variation in the dependent variable, judging by the Adjusted R2, is attributable to the combined effect of the independent variables. Analysis also reveals that aggregate bank credit to the agricultural sector, (ABCAS), and real effective exchange rate, (REER), exhibit positive and significant relations with agricultural output growth with co-efficient of 29.01 and 33.10 respectively. The study therefore canvasses for banking system structure that prioritizes agricultural financing anchored on manufacturing: – (agro-business; focus), to engender agricultural value-chain creation and enhancement, preferably targeting export of finished agro-allied products.},
 year = {2021}
}

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TY  - JOUR
T1  - Banking Sector Reforms and Agricultural Sector Performance in Nigeria
AU  - Yekeen Oku. Abdul-Maliq
AU  - Jude Igyo Ali
AU  - Henry Yua
Y1  - 2021/09/23
PY  - 2021
N1  - https://doi.org/10.11648/j.jbed.20210603.17
DO  - 10.11648/j.jbed.20210603.17
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 176
EP  - 183
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20210603.17
AB  - This paper examines the effect of banking sector reforms on the growth of agricultural output in Nigeria from 1986 to 2019, with the specific objective of determining the extent to which aggregate bank credit to the agricultural sector (ABCAS), which was expected to be occasioned by banking sector reforms, in conjunction with other reform variables, impacted output growth in the agricultural sector in the period under study. The study utilizes 34 years annual time series data obtained from NBS and CBN data bases. Two-Stage Least Squares (2SLS), technique, Breusch–Godfrey LM test of autocorrelation and the ARCH test were used to ascertain the short and long run relationships among ABCAS, DMBLDR, IRS and ASOP. Hypotheses are tested at 5% level of significance. Results show that 96% of the variation in the dependent variable, judging by the Adjusted R2, is attributable to the combined effect of the independent variables. Analysis also reveals that aggregate bank credit to the agricultural sector, (ABCAS), and real effective exchange rate, (REER), exhibit positive and significant relations with agricultural output growth with co-efficient of 29.01 and 33.10 respectively. The study therefore canvasses for banking system structure that prioritizes agricultural financing anchored on manufacturing: – (agro-business; focus), to engender agricultural value-chain creation and enhancement, preferably targeting export of finished agro-allied products.
VL  - 6
IS  - 3
ER  -

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Author Information

Yekeen Oku. Abdul-Maliq

Department of Banking and Finance, University of Abuja, Abuja, Nigeria
Jude Igyo Ali

Benue State Internal Revenue Service, Makurdi, Nigeria
Henry Yua

Department of Banking and Finance, Nigerian Army College of Environmental Science and Technology, Makurdi, Nigeria

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APA Style

Yekeen Oku. Abdul-Maliq, Jude Igyo Ali, Henry Yua. (2021). Banking Sector Reforms and Agricultural Sector Performance in Nigeria. Journal of Business and Economic Development, 6(3), 176-183. https://doi.org/10.11648/j.jbed.20210603.17

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ACS Style

Yekeen Oku. Abdul-Maliq; Jude Igyo Ali; Henry Yua. Banking Sector Reforms and Agricultural Sector Performance in Nigeria. J. Bus. Econ. Dev. 2021, 6(3), 176-183. doi: 10.11648/j.jbed.20210603.17

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AMA Style

Yekeen Oku. Abdul-Maliq, Jude Igyo Ali, Henry Yua. Banking Sector Reforms and Agricultural Sector Performance in Nigeria. J Bus Econ Dev. 2021;6(3):176-183. doi: 10.11648/j.jbed.20210603.17

Copy | Download

@article{10.11648/j.jbed.20210603.17,
  author = {Yekeen Oku. Abdul-Maliq and Jude Igyo Ali and Henry Yua},
  title = {Banking Sector Reforms and Agricultural Sector Performance in Nigeria},
  journal = {Journal of Business and Economic Development},
  volume = {6},
  number = {3},
  pages = {176-183},
  doi = {10.11648/j.jbed.20210603.17},
  url = {https://doi.org/10.11648/j.jbed.20210603.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20210603.17},
  abstract = {This paper examines the effect of banking sector reforms on the growth of agricultural output in Nigeria from 1986 to 2019, with the specific objective of determining the extent to which aggregate bank credit to the agricultural sector (ABCAS), which was expected to be occasioned by banking sector reforms, in conjunction with other reform variables, impacted output growth in the agricultural sector in the period under study. The study utilizes 34 years annual time series data obtained from NBS and CBN data bases. Two-Stage Least Squares (2SLS), technique, Breusch–Godfrey LM test of autocorrelation and the ARCH test were used to ascertain the short and long run relationships among ABCAS, DMBLDR, IRS and ASOP. Hypotheses are tested at 5% level of significance. Results show that 96% of the variation in the dependent variable, judging by the Adjusted R2, is attributable to the combined effect of the independent variables. Analysis also reveals that aggregate bank credit to the agricultural sector, (ABCAS), and real effective exchange rate, (REER), exhibit positive and significant relations with agricultural output growth with co-efficient of 29.01 and 33.10 respectively. The study therefore canvasses for banking system structure that prioritizes agricultural financing anchored on manufacturing: – (agro-business; focus), to engender agricultural value-chain creation and enhancement, preferably targeting export of finished agro-allied products.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Banking Sector Reforms and Agricultural Sector Performance in Nigeria
AU  - Yekeen Oku. Abdul-Maliq
AU  - Jude Igyo Ali
AU  - Henry Yua
Y1  - 2021/09/23
PY  - 2021
N1  - https://doi.org/10.11648/j.jbed.20210603.17
DO  - 10.11648/j.jbed.20210603.17
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 176
EP  - 183
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20210603.17
AB  - This paper examines the effect of banking sector reforms on the growth of agricultural output in Nigeria from 1986 to 2019, with the specific objective of determining the extent to which aggregate bank credit to the agricultural sector (ABCAS), which was expected to be occasioned by banking sector reforms, in conjunction with other reform variables, impacted output growth in the agricultural sector in the period under study. The study utilizes 34 years annual time series data obtained from NBS and CBN data bases. Two-Stage Least Squares (2SLS), technique, Breusch–Godfrey LM test of autocorrelation and the ARCH test were used to ascertain the short and long run relationships among ABCAS, DMBLDR, IRS and ASOP. Hypotheses are tested at 5% level of significance. Results show that 96% of the variation in the dependent variable, judging by the Adjusted R2, is attributable to the combined effect of the independent variables. Analysis also reveals that aggregate bank credit to the agricultural sector, (ABCAS), and real effective exchange rate, (REER), exhibit positive and significant relations with agricultural output growth with co-efficient of 29.01 and 33.10 respectively. The study therefore canvasses for banking system structure that prioritizes agricultural financing anchored on manufacturing: – (agro-business; focus), to engender agricultural value-chain creation and enhancement, preferably targeting export of finished agro-allied products.
VL  - 6
IS  - 3
ER  -

Copy | Download