EXAMINING THE NEXUS BETWEEN AGRICULTURAL FINANCING REFORMS AND NIGERIA’S MACROECONOMIC PERFORMANCE: A COMPUTABLE GENERAL EQUILIBRIUM ANALYSIS (2012-2020)

Year 2023, Volume: 7 Issue: 2, 96 - 109, 18.10.2023

Onyebuchi Henry Chiogor , Gylych Jelılov , Olugbenga Omotayo Alabı

Abstract

This study conducted a computable general equilibrium analysis (2012-2020) to investigate the
relationship between Nigeria’s agriculture financing reforms and the country’s overall macroeconomic
performance. Specifically, the study evaluated the impact of the agricultural financing reforms on
household income and household welfare. 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
household welfare. While the impact of the policy options (decrease in interest rates on agricultural
loans by 10% and 8%) on household income is not significant. The study therefore recommends a
review in the interest rates on agricultural loans to improve household income. This recommendation
is premised on the findings that both 10% and 8% reductions failed to improve the income levels of the
households.

Keywords

Macroeconomic Performance, Agricultural Financing Reforms, A Computable General Equilibrium Analysis (CGE), Nigeria

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