IMPACT OF BANK CREDITS ON AGRICULTURAL PRODUCTIVITY IN NIGERIA

The study examined the impact of bank credits on agricultural productivity in Nigeria. The specific objectives of the study were to examine the impact of commercial banks' credits to agriculture on agricultural productivity in Nigeria; and evaluate the impact of microfinance banks' credits to agriculture on agricultural productivity in Nigeria. The study adopted ex-post-facto research design. Time series data were generated from Central Bank of Nigeria Statistical Bulletin from 1992 to 2018. Ordinary Least Square (OLS) was the method of analysis used to estimate the Multiple Linear Regression Model (MLRM) through E-Views computer software application. The other tools of data analysis used were descriptive statistics unit root test and co-integration test and VAR. The study found out that both commercial and microfinance banks' credits invested in agriculture were statistically significant with agricultural productivity in Nigeria. The study concluded that bank credits have significant impact on agricultural productivity in Nigeria. The study recommended that the significant impact of commercial and microfinance banks' credits invested in agriculture callf or more allocation of credit to the agricultural sector in Nigeria. This could be achieved by the Central Bank of Nigeria (CBN) cutting down on the interest rate changed on money borrowed by farmers for the purpose of boosting agricultural production.