Deposit Money Banks' Credit and Agricultural Output in Nigeria
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This study examines the impact of Deposit Money Banks' credit on agricultural output in Nigeria between 1980 to 2017. The data for the empirical analyses were extracted from the Central Bank of Nigeria Statistical bulletin (various issues). The study obtained Agricultural contribution to Gross Domestic Product(AGDP) to proxy agricultural output while Deposit Money Banks' credit to agricultural sector (DMBC) was the primary independent variable while (INR) and (GEA) were used as check variables to promote the independent power of the model. Descriptive statistics, unit root test, co-integration and Error Correction Model (ECM) methods of analyses served as the analytical tools. From the empirical analysis of the results, the paper concludes that there is an insignificant inverse link between Deposit Money Banks' credit to agricultural sector and Nigerian agricultural output. The outcome also explained that government expenditure on agriculture had a significant negative effect on agricultural production in Nigeria. Again, the result explains that an inverse and insignificant relationship exist amongst interest rate and Nigerian agricultural output. It is therefore suggested that a state of emergency be declared in Nigeria's agricultural sector so as to optimise its inherent benefits. This can be obtained through government's increasing her budgetary allocation to the agricultural region in-line with the provisions of Food and Agricultural Organisation (FAO) and also constructing of a monitoring team to ensure that the allocated fund is judiciously utilized.