Intervention Funds and Agricultural Productivity in Nigeria
Intervention Funds and Agricultural Productivity in Nigeria

Summary/Abstract: This study researches the impact of the Central Bank of Nigeria’s (CBN) intervention funds on agricultural productivity in Nigeria from 1986 to 2023. Using time-series data obtained from the CBN Statistical Bulletin and the World Bank, the study employs the Autoregressive Distributed Lag (ARDL) model within the framework of the Endogenous Growth Theory (AK). The ARDL model is chosen for its suitability in cases of mixed integration orders among variables and its reliability in handling small sample sizes, providing robustness to the study's analysis. Findings in the study reveal that the Agricultural Credit Guarantee Scheme Fund (ACGSF) had a statistically significant and positive effect on crop and livestock subsector productivity, with long-run coefficients of 1.87 (crop) and 2.05 (livestock). The fishery subsector recorded a positive but less pronounced effect. In contrast, macroeconomic indicators such as the credit-to-GDP ratio and interest rates were found to have limited or statistically insignificant effects. These results emphasize the transformative role of targeted financial interventions over generalized monetary policies. The study recommends enhancing access to affordable agricultural credit, strengthening monitoring systems, and developing subsector-specific policy interventions to boost overall agricultural productivity in Nigeria.

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