Financing Grain Crop Production and the Economic Growth in Nigeria
Oyatayo Taiwo Taoridi1, Ehijiele Ekienabor2, Kabir Ismail3
1Department of Finance, Mewar International University, Karu Nasarawa State. Nigeria
2Department of Business Administration, CBMS, Igbinedion University Okada, Edo State, Nigeria
3Department of Finance, Mewar International University, Karu Nasarawa State. Nigeria
Abstract - This research study examined the impact of financing grain crop production on economic growth in Nigeria with the use of secondary time series data for a period of twenty-three years (2000-2023). Ex-post facto research design was adopted employing Unit root test and ARDL approach. Specific references were made to one of the most relevant macroeconomic variables such as loans and advances. Empirical results reveal that loans and advances considered for the analysis had insignificant effect on economic growth in Nigeria during the period under review, implying that financing is an important determinant of crop grain productivity in Nigeria. The real Gross Domestic Product is the dependent variable proxied economic growth. The result revealed that; 1 percent increase in financing grains production leads to about 0.011% increase in real gross domestic product (RGDP). It was found that coefficient of FGP is positive, indicating positive relationship between FGP and RGDP, and this is in line with a-priori. Also revealed; 1 percent increase in interest rate leads to about 0.002% decrease in real gross domestic product (RGDP). It was found that coefficient of FGP is negative, indicating negative relationship between INTR and RGDP, and this is in line with a-priori. The study therefore recommended that, government should provide financing policies in place in terms of financing crop grain production and interest rate that will boast the agricultural sector output to cushion effects of high cost of living in the country.
Key Words: RGDP; Grain crop production financing (FGP); Interest Rate (INTR); Economic growth; Nigeria
