Economic and Financial Review


Central Bank of Nigeria.


Agriculture, Agricultural Finance, Food Security, Finance, Sustainable, Nigeria


Several studies have found a positive correlation between agricultural financing and the performance of the agricultural sector. But fewer efforts have been directed at sieving out the agricultural output that is exclusively associated with the extent of funding. This study aimed to ascertain the actual portion of total agricultural output that could be attributed to agricultural financing in Nigeria. The vector error correction methodology was applied following the nature of data properties. The results showed a positive effect of finance on agricultural output. However, variance decomposition revealed the poor state of agricultural financing with a disproportionate dependence of the sector on natural weather conditions. The case is therefore made for increased funding of agriculture for optimal performance.

Author Bio

Mbutor O. M., Ochu R. E. and Okafor I. I. are staff of the Research Department, Central Bank of Nigeria. T

Publication Title

CBN Economic and Financial Review





Recommended Citation

Mbutor, O. M., Ochu, R. E. & Okafor, I. I. (2013). The Contribution of Finance to Agricultural Production in Nigeria. CBN Economic and Financial Review. 51(2), 1-20.



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