This study investigated the impact of agricultural financing on economic performance in Nigeria spanning from 1998 to 2023, focusing on three key financing instruments: Agricultural Credit Guarantee Scheme Fund (ACGFS), Deposit Money Bank Credit to Agriculture Sector (DMBCAS), and Bank of Agriculture Loan to Farmers (BALF). The study used secondary date sourced from the Central Bank of Nigeria (CBN) for the various years, employed Ex-post facto research design and multiple regression analysis as the method of analysis. Using Gross Domestic product (GDP) as the dependent variable, the study examines the extent to which these financing mechanisms influence economic performance. The findings reveal significant causal relationships from ACGFS, DMBCAS, and BALF to GDP, underscoring the pivotal role of agricultural credit in driving economic growth. Conversely, no significant causality was observed from GDP to these agricultural financing instruments, suggesting that the flow of credit into agriculture is shaped more by policy and sector-specific factors than by general economic conditions. The study concludes that enhancing agricultural financing through targeted policies and improved access to credit can significantly contribute to Nigeria's economic growth. Recommendations include strengthening agricultural financing mechanisms, expanding commercial bank engagement in agriculture, and ensuring continuous monitoring and evaluation of agricultural credit programs.
EZUEM et al. (Tue,) studied this question.