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Year 2023, Volume: 10 Issue: 2, 98 - 107, 30.06.2023

Onyebuchi Henry Chıogor Jelilov Gylych Olugbenga Omotayo Alabı

https://doi.org/10.17261/Pressacademia.2023.1732

Abstract

References

  • Acha Ikechukwu, A., & Acha, I. (2012). Microfinance banking in Nigeria: Problems and prospects. International Journal of Finance and Accounting, 1(5), 106-111.
  • Adamgbe, E. T., Belonwu, M. C., Ochu, E. R., & Okafor, I. I. (2020). Analysis of the Impact of Central Bank of Nigeria's Agricultural Intervention Funds on the Economy. Economic and Financial Review, 58(1), 57-80.
  • Ademola, A. E. (2019). Impact of agricultural financing on Nigeria economy. Asian Journal of Agricultural Extension, Economics & Sociology, 31(2), 1-13.
  • Ademola, I. S., Olaleye, S. O., Olusuyi, A. E., & Edun, F. (2013). Government expenditure on agricultural sector and economic growth in Nigeria (1981–2010). IOSR Journal of Humanities and Social Science, 8(4), 62-67.
  • Ayeomoni, I. O., & Aladejana, S. A. (2016). Agricultural credit and economic growth nexus. Evidence from Nigeria. International Journal of Academic Research in Accounting, Finance and Management Science, 6(2), 146-158.
  • Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.
  • Dim, C., & Ezenekwe, U. (2013). Does agriculture matter for economic development? Empirical evidence from Nigeria. Journal of finance and economics, 1(1), 61-77.
  • Feridun, M., Ayadi, F. S., & Balouga, J. (2006). Impact of trade liberalization on the environment in developing countries: the case of Nigeria. Journal of Developing Societies, 22(1), 39-56.
  • FMARD Nigeria Federal Ministry of Agriculture and Rural Development. (2016). The Agriculture Promotion Policy (2016–2020): Building on the Successes of the ATA, Closing Key Gaps. Abuja: FMARD.
  • Griswold, D. T. (2006). Grain Drain: The hidden cost of US rice subsidies. Cato Institute Trade Briefing Paper Series, (25). Trade Briefing Paper no. 25 November 11th, 2006, CATO, United States.
  • Iganiga, B. O., & Unemhilin, D. O. (2011). The impact of federal government agricultural expenditure on agricultural output in Nigeria. Journal of Economics, 2(2), 81-88.
  • International Food Policy Research Institute (IFPRI) (2008). Agricultural Public Spending in Nigeria. IFPRI Discussion Paper 00789. Available at http://www.ifpri.cgar.org
  • Iorember, P. T., & Jelilov, G. (2018). Computable general equilibrium analysis of increase in government agricultural expenditure on household welfare in Nigeria. African Development Review, 30(4), 362-371.
  • Izuchukwu, O. O. (2011). Analysis of the contribution of agricultural sector on the Nigerian economic development. World Review of Business Research, 1(1), 191-200.
  • Manyong, V. M., Ikpi, A., & Olayemi, J. K. (2004). Agriculture in Nigeria: identifying opportunities for increased commercialization and investment: summary report. Ibadan, Nigeria: IITA, (p. 28).
  • Mohajan, H. K. (2018). Qualitative research methodology in social sciences and related subjects. Journal of Economic Development, Environment and People, 7(1), 23-48.
  • Mikugi, I. A., & Bagudu, H. D. (2020). Assessment of the Role of Nirsal Microfinance Bank in Promoting Agricultural, Small and Medium Enterprise in Bida Metropolis. Journal of Management Science & Entrepreneurship, 7(20), 887-899.
  • Noko, E. J. (2016). Economic recession in Nigeria: Causes and solution. Available at http/educainfo.com/economicrecession-Nigeria/ (Accessed April 14, 2022).
  • Nsikak, A.A., & Udoh E.J. (2015). The Determinants of Rural Poverty in Nigeria. International Journal of Agricultural Management & Development, 3, 141-151.
  • Nwanze, K.F, Mohapatra, S., Kormawa, P., Keya, S. & Bruce-Oliver, S. (2006). Rice development in Sub-Saharan Africa. Journal of the Science of Food and Agriculture; 86, 675–677.
  • Nwosu, F. O., Oguoma, N. N. O., Ben-Chendo, N. G., & Henri-Ukoha, A. (2010). The agricultural credit guarantee scheme: its roles, problems and prospects in Nigeria’s quest for agricultural development. Researcher, 2(2), 87-90.
  • Obansa, S.A.J., & I.M., Madueke (2013). Agricultural financing and economic growth in Nigeria. European Scientific Journal, 9(1), 168– 204.
  • Obi-Egbedi, O., Okoruwa, V.O., Aminu A., & Yusuf, S. (2012). Effect of rice trade policy on household welfare in Nigeria. European Journal of Business and Management; 4(8), 160–70.
  • Okafor, C. A. (2020). Commercial banks credit and agricultural development in Nigeria. International Journal of Business & Law Research, 8(3), 89-99.
  • Olofin, S. O., Adenikinju, A., & Iwayemi, A. (2003). A computable general equilibrium analysis of Nigeria’s trade competitiveness. CEAR Research Paper, (2001/01).
  • Olomola, A. S. (1994). Changes in rural and agricultural credit policies in the structural adjustment in Nigeria. Quarterly Journal of International Agriculture, 33(1), 23-34.
  • Olomola, A. S. (2017). Ending rural hunger in Nigeria: Mapping needs and actions for food and nutrition security. Final research report submitted to the Brookings Institution, Washington DC, USA.
  • Onoja, A. O., Onu, M. E., & Ajodo-Ohiemi, S. (2011). Contributions of financial sector reforms and credit supply to Nigerian agricultural sector (1978-2009). CBN Journal of Applied Statistics, 2(2), 83-98.
  • Omankhanlen, A. E. (2012). The financial sector reforms and their effect on the Nigerian economy. Economy Transdisciplinarity Cognition, 15(2), 45-57.
  • Philip, A., & Iorember, P. T. (2017). Macroeconomic and household welfare impact of increase in minimum wage in Nigeria: A computable general equilibrium model. American Journal of Economics, 7(5), 249-258.
  • Polycarp, I. M. (2018). Enhancing institutional lending to the agricultural sector by derisking the value chain: the case of Nigerian Incentive Based Risk Sharing System for Agricultural Lending (NIRSAL). Bullion, 42(1), 3-16.
  • Ullah, A., Mahmood, N., Zeb, A., & Kächele, H. (2020). Factors determining farmers’ access to and sources of credit: evidence from the rain-fed zone of Pakistan. Agriculture, 10(12), 586-599.
  • Umeji, G. (2019). Diversification of the Nigerian economy through agricultural sector transformation. SAU Journal of Management and Social Science, 4(1&2). 4(1-2), 233 – 240.
  • Rahji, A. M. (2010). Gender impacts of farm household resource allocation on agricultural commercialization in Oyo state, Nigeria. ASSET: An International Journal (Series C)}, 2(1), 1-15.
  • Sertoglu, K., Ugural, S., & Bekun, F. V. (2017). The contribution of agricultural sector on economic growth of Nigeria. International Journal of Economics and Financial Issues, 7(1), 547-552.
  • Slesnick, D. T. (1998). Empirical approaches to the measurement of welfare. Journal of Economic Literature, 36(4), 2108-2165.
  • World Bank. World Development Report 2017: Governance and the Law: World Bank, 2017. http://www.worldbank.org/en/publication/ wdr2017 (cited 10 Nov 2017).

MACROECONOMIC IMPACT OF AGRICULTURAL FINANCING REFORMS: A COMPUTABLE GENERAL EQUILIBRIUM ANALYSIS OF NIGERIA

Year 2023, Volume: 10 Issue: 2, 98 - 107, 30.06.2023

Onyebuchi Henry Chıogor Jelilov Gylych Olugbenga Omotayo Alabı

https://doi.org/10.17261/Pressacademia.2023.1732

Abstract

Purpose- The study analyzed the macroeconomic impact of agricultural financing reforms: a computable general equilibrium analysis of Nigeria. Specifically, the study evaluated the macroeconomic impact of the agricultural financing reforms on economic growth, and agricultural output.
Methodology- This study employed time series data from secondary sources such as the Central Bank of Nigeria (CBN), the National Bureau of Statistics' (NBS) in conjunction with the World Bank Living Standard Measurement Study (LSMS) and Information from the Nigerian Living Standard Survey for 2019 was used to obtain shares of household income and expenditure which covered the period 2010-2022. Applying the economy-wide methodology of Computer General Equilibrium model on reformatted upgraded Social Accounting Matrix for Nigeria, Simulation Designs, and t- test.
Findings- The study finds that agricultural financing reforms through a decrease in interest rates on agricultural loans by 10% and 8% have positive significant impact on economic growth. The results of the study also reveal that agricultural financing reforms through a decrease in interest rates on agricultural loans by 10% and 8% have positive significant impact on agricultural output.
Conclusion- The two policy scenarios (10% and 8% reduction in interest rate on agricultural loans) were simulated and the results for both cases indicated that all the macroeconomic indicators increased significantly due to the policy options.

Keywords

Macroeconomic impact agricultural financing reforms computable general equilibrium analysis economic growth Nigeria

References

  • Acha Ikechukwu, A., & Acha, I. (2012). Microfinance banking in Nigeria: Problems and prospects. International Journal of Finance and Accounting, 1(5), 106-111.
  • Adamgbe, E. T., Belonwu, M. C., Ochu, E. R., & Okafor, I. I. (2020). Analysis of the Impact of Central Bank of Nigeria's Agricultural Intervention Funds on the Economy. Economic and Financial Review, 58(1), 57-80.
  • Ademola, A. E. (2019). Impact of agricultural financing on Nigeria economy. Asian Journal of Agricultural Extension, Economics & Sociology, 31(2), 1-13.
  • Ademola, I. S., Olaleye, S. O., Olusuyi, A. E., & Edun, F. (2013). Government expenditure on agricultural sector and economic growth in Nigeria (1981–2010). IOSR Journal of Humanities and Social Science, 8(4), 62-67.
  • Ayeomoni, I. O., & Aladejana, S. A. (2016). Agricultural credit and economic growth nexus. Evidence from Nigeria. International Journal of Academic Research in Accounting, Finance and Management Science, 6(2), 146-158.
  • Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.
  • Dim, C., & Ezenekwe, U. (2013). Does agriculture matter for economic development? Empirical evidence from Nigeria. Journal of finance and economics, 1(1), 61-77.
  • Feridun, M., Ayadi, F. S., & Balouga, J. (2006). Impact of trade liberalization on the environment in developing countries: the case of Nigeria. Journal of Developing Societies, 22(1), 39-56.
  • FMARD Nigeria Federal Ministry of Agriculture and Rural Development. (2016). The Agriculture Promotion Policy (2016–2020): Building on the Successes of the ATA, Closing Key Gaps. Abuja: FMARD.
  • Griswold, D. T. (2006). Grain Drain: The hidden cost of US rice subsidies. Cato Institute Trade Briefing Paper Series, (25). Trade Briefing Paper no. 25 November 11th, 2006, CATO, United States.
  • Iganiga, B. O., & Unemhilin, D. O. (2011). The impact of federal government agricultural expenditure on agricultural output in Nigeria. Journal of Economics, 2(2), 81-88.
  • International Food Policy Research Institute (IFPRI) (2008). Agricultural Public Spending in Nigeria. IFPRI Discussion Paper 00789. Available at http://www.ifpri.cgar.org
  • Iorember, P. T., & Jelilov, G. (2018). Computable general equilibrium analysis of increase in government agricultural expenditure on household welfare in Nigeria. African Development Review, 30(4), 362-371.
  • Izuchukwu, O. O. (2011). Analysis of the contribution of agricultural sector on the Nigerian economic development. World Review of Business Research, 1(1), 191-200.
  • Manyong, V. M., Ikpi, A., & Olayemi, J. K. (2004). Agriculture in Nigeria: identifying opportunities for increased commercialization and investment: summary report. Ibadan, Nigeria: IITA, (p. 28).
  • Mohajan, H. K. (2018). Qualitative research methodology in social sciences and related subjects. Journal of Economic Development, Environment and People, 7(1), 23-48.
  • Mikugi, I. A., & Bagudu, H. D. (2020). Assessment of the Role of Nirsal Microfinance Bank in Promoting Agricultural, Small and Medium Enterprise in Bida Metropolis. Journal of Management Science & Entrepreneurship, 7(20), 887-899.
  • Noko, E. J. (2016). Economic recession in Nigeria: Causes and solution. Available at http/educainfo.com/economicrecession-Nigeria/ (Accessed April 14, 2022).
  • Nsikak, A.A., & Udoh E.J. (2015). The Determinants of Rural Poverty in Nigeria. International Journal of Agricultural Management & Development, 3, 141-151.
  • Nwanze, K.F, Mohapatra, S., Kormawa, P., Keya, S. & Bruce-Oliver, S. (2006). Rice development in Sub-Saharan Africa. Journal of the Science of Food and Agriculture; 86, 675–677.
  • Nwosu, F. O., Oguoma, N. N. O., Ben-Chendo, N. G., & Henri-Ukoha, A. (2010). The agricultural credit guarantee scheme: its roles, problems and prospects in Nigeria’s quest for agricultural development. Researcher, 2(2), 87-90.
  • Obansa, S.A.J., & I.M., Madueke (2013). Agricultural financing and economic growth in Nigeria. European Scientific Journal, 9(1), 168– 204.
  • Obi-Egbedi, O., Okoruwa, V.O., Aminu A., & Yusuf, S. (2012). Effect of rice trade policy on household welfare in Nigeria. European Journal of Business and Management; 4(8), 160–70.
  • Okafor, C. A. (2020). Commercial banks credit and agricultural development in Nigeria. International Journal of Business & Law Research, 8(3), 89-99.
  • Olofin, S. O., Adenikinju, A., & Iwayemi, A. (2003). A computable general equilibrium analysis of Nigeria’s trade competitiveness. CEAR Research Paper, (2001/01).
  • Olomola, A. S. (1994). Changes in rural and agricultural credit policies in the structural adjustment in Nigeria. Quarterly Journal of International Agriculture, 33(1), 23-34.
  • Olomola, A. S. (2017). Ending rural hunger in Nigeria: Mapping needs and actions for food and nutrition security. Final research report submitted to the Brookings Institution, Washington DC, USA.
  • Onoja, A. O., Onu, M. E., & Ajodo-Ohiemi, S. (2011). Contributions of financial sector reforms and credit supply to Nigerian agricultural sector (1978-2009). CBN Journal of Applied Statistics, 2(2), 83-98.
  • Omankhanlen, A. E. (2012). The financial sector reforms and their effect on the Nigerian economy. Economy Transdisciplinarity Cognition, 15(2), 45-57.
  • Philip, A., & Iorember, P. T. (2017). Macroeconomic and household welfare impact of increase in minimum wage in Nigeria: A computable general equilibrium model. American Journal of Economics, 7(5), 249-258.
  • Polycarp, I. M. (2018). Enhancing institutional lending to the agricultural sector by derisking the value chain: the case of Nigerian Incentive Based Risk Sharing System for Agricultural Lending (NIRSAL). Bullion, 42(1), 3-16.
  • Ullah, A., Mahmood, N., Zeb, A., & Kächele, H. (2020). Factors determining farmers’ access to and sources of credit: evidence from the rain-fed zone of Pakistan. Agriculture, 10(12), 586-599.
  • Umeji, G. (2019). Diversification of the Nigerian economy through agricultural sector transformation. SAU Journal of Management and Social Science, 4(1&2). 4(1-2), 233 – 240.
  • Rahji, A. M. (2010). Gender impacts of farm household resource allocation on agricultural commercialization in Oyo state, Nigeria. ASSET: An International Journal (Series C)}, 2(1), 1-15.
  • Sertoglu, K., Ugural, S., & Bekun, F. V. (2017). The contribution of agricultural sector on economic growth of Nigeria. International Journal of Economics and Financial Issues, 7(1), 547-552.
  • Slesnick, D. T. (1998). Empirical approaches to the measurement of welfare. Journal of Economic Literature, 36(4), 2108-2165.
  • World Bank. World Development Report 2017: Governance and the Law: World Bank, 2017. http://www.worldbank.org/en/publication/ wdr2017 (cited 10 Nov 2017).
There are 37 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Articles
Authors

Onyebuchi Henry Chıogor This is me 0000-0001-8144-3396

Jelilov Gylych This is me 0000-0002-7428-7361

Olugbenga Omotayo Alabı This is me 0000-0002-8390-9775

Publication Date June 30, 2023
Published in Issue Year 2023 Volume: 10 Issue: 2

Cite

APA Chıogor, O. H., Gylych, J., & Alabı, O. O. (2023). MACROECONOMIC IMPACT OF AGRICULTURAL FINANCING REFORMS: A COMPUTABLE GENERAL EQUILIBRIUM ANALYSIS OF NIGERIA. Journal of Economics Finance and Accounting, 10(2), 98-107. https://doi.org/10.17261/Pressacademia.2023.1732

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