Matching Credit with Season: An Issue for Non Performing Agricultural Loans in Nigeria

Christopher N. Ekong and Kenneth Onye ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper empirically investigates the performance of Nigeria’s agricultural credit policies with a view to unearthing the factors responsible for the poor loan performance. The findings reveal that although Nigeria’s agricultural sector is abysmally underfunded with an unproductive federal budget structure that have been detrimental to agricultural productivity, the basic factor responsible for poor loan performance has been the failure to match credit with seasons. From the analysis of loans and disbursement flow to agricultural sector, it was discovered that loan are paid to farmers with utter disregard to the seasons. Evidently, the mismatch of credit disbursement with seasons attenuated growth and productivity of agriculture in Nigeria, resulting in poor loan performance. We recommend the adoption of the seasonality model, an innovative strategy, which is capable of solving the problem of default in agricultural financing and as such aiding the process of enhanced agricultural productivity and national development.

Keywords: Agricultural loans; Nigeria; Seasonality Model; ACGSF (search for similar items in EconPapers)
JEL-codes: E5 Q0 Q1 Q14 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in IOSR Journal of Agriculture and Veterinary Science (IOSR-JAVS) 2.3(2013): pp. 48-63

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/88306/1/MPRA_paper_88306.pdf original version (application/pdf)

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:pra:mprapa:88306

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().