Cost of Funds Deregulation on Agricultural Investments in Nigeria: An Analysis

Innocent Asuquo, Arigor John Arigor and Emmanuel Okon Eyo
Additional contact information
Innocent Asuquo: Department of Agricultural Economics, Faculty of Agriculture
Arigor John Arigor: Department of Agricultural Economics, Faculty of Agriculture
Emmanuel Okon Eyo: Forestry and Wildlife Resources Management, University of Calabar, Calabar, Cross River State, Nigeria.

International Journal of Economics and Financial Issues, 2021, vol. 11, issue 3, 134-141

Abstract: The study examined agricultural investments in the light of deregulating the cost of funds. Factors that determine aggregate credit volume to the sector within the costs of funds regulated and deregulated periods and; the growth level in agricultural credit within the deregulated period were the specific objectives. Secondary data were used, sourced from Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS). Data were analyzed using Co-integration technique and Real Credit Growth Rate Model. The Co-integration results showed that in the long-run, average interest lending rate and budgetary allocation were key variables on aggregate credit volume to agricultural sector. In the short-run, savings mobilized by financial institutions, the average lending rate, previous year s average saving rate, inflation rate and government budgetary allocation to the sector were the significant variables on credit volume to agriculture. The result of the real credit growth rate within the deregulated period was 8.91%. Arising from this, therefore, the study recommended a complete unbundling of the markets as it will ensure funds availability for investments in the sector.

Keywords: Agricultural investments; cost of funds; deregulation; Nigeria. (search for similar items in EconPapers)
JEL-codes: G11 Q14 (search for similar items in EconPapers)
Date: 2021
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.econjournals.com/index.php/ijefi/article/download/8922/pdf (application/pdf)
https://www.econjournals.com/index.php/ijefi/article/view/8922/pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2021-03-14

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().