Fostering Agricultural Growth Sustainability: The Critical Role of Bank Financing in Nigeria

Abstract

This study examines the impact of deposit money banks' loan on agricultural sustainability in Nigeria for the period 1985–2017. The study adopted the ARDL bonding test to determine the short- and long-run effect of deposit money banks' loan on agricultural sustainability in Nigeria. It found that bank loans have a negative impact on agricultural sustainability in both the short and long run. Similarly, deposit money banks' interest rate also has an inverse relationship on agricultural growth in Nigeria in both the long and short run. The study concludes that bank finance is very impactful in stimulating agricultural growth within the context of the Nigerian economy. Therefore, the study recommends that the Nigerian government should increase agricultural financing and lower interest rates in order to achieve food sufficiency and promote agricultural sustainability.

Citation

Okunlola, O.C. and Ayetigbo, O.A. (2024), "Fostering Agricultural Growth Sustainability: The Critical Role of Bank Financing in Nigeria", Das, R.C. (Ed.) Growth, Poverty and Developmental Aspects of Agriculture, Emerald Publishing Limited, Leeds, pp. 27-40. https://doi.org/10.1108/978-1-83608-076-320241003