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

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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