ROLE OF BANKING SECTOR IN THE DEVELOPMENT OF AGRICULTURAL EXPORTS IN NIGERIA

TABLE OF CONTENTS

Title page i

Certification ii

Dedication iii

Acknowledgement iv

Table of Contents vi

List of Tables x

Abstract xii

CHAPTER ONE: INTRODUCTION 

1.1 Background to the Study 1

1.2 Statement of the Problem 5

1.3 Research Questions 6

1.4 Objective of the Study 6

1.5 Hypotheses of the Study 7

1.6 Justification of the Study 7

1.7 Scope of the Study 8

1.8 Organization of the Study 8

CHAPTER TWO: LITERATURE REVIEW

2.0 Introduction 10

2.1 Conceptual Review 10

2.1.1 Concept of Agricultural Exports 10

2.1.2 Concept of Agricultural Credit 13

2.1.3 Sources of Agricultural Financing 19

2.1.3.1 Bank of Agriculture 20

2.1.3.2 Commercial Banks 22

2.1.3.3 Central Bank of Nigeria 22

2.1.4 Agricultural Credit Guarantee Scheme fund establishment 23

2.2 Theoretical Framework 25

2.2.1 Absolute Advantage Theory 25

2.2.2 Comparative Advantage Theory 27

2.3 Empirical Review 29

2.4 Research Gap 38

CHAPTER THREE: RESEARCH METHODOLOGY

3.0 Introduction 40

3.1 Model Specification 40

3.2 Research Design 41

3.3 Population of the Study 42

3.4 Sample Size and Sampling Technique 42

3.5 Sources of Data 42

3.6 Method of Data Analysis 43

CHAPTER FOUR: RESULTS AND DISCUSSIONS

4.0 Introduction 44

4.1 Data Description 44

4.2 Data Analysis and Results 45

4.2.1 Descriptive Statistics 45

4.2.2 Testing of Research Hypotheses 48

4.2.3 Model Summary 51

4.2.4 Analysis of Variance 52

4.2.5 Interpretation of Regression Coefficient 53

4.3 Discussion of Findings 54

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary 58

5.2      Conclusion 59

5.3 Recommendation 59

REFERENCES 62

ABSTRACT

Agricultural exports sector has been declining due to poor access to credit facilitiesat pre-shipment and post shipment stages as opposed to what is happening in other countries of the world.  This may be attributed to the banking sector not clearly identifying their major functions in boosting agricultural sector.Against this background, this study examined the role of banking sector in the development of agricultural export in Nigeria. The specific objectives were to: (i)to examine the contribution of banking sector to the development of agricultural exports in Nigeria; (ii) assess the impact of increased cost arising from exchange rate fluctuation on agricultural exports in Nigeria; (iii) evaluate the impact of interest rate on loans granted to the Agricultural sector in Nigeria.Ex-post facto research design was used and data of banking sector GDP, exchange rate, interest rate and agricultural exports from period of 2005-2015 were used. The study used descriptive statistics, pairwise correlation and generalized least square technique to analyse the secondary data extracted from NBS, Nigeria statistical bulletin among others for the period of 2005 to 2015. The study revealed that (i)banks does not provide adequate fund to the farmers needed for the production of Agricultural goods, (ii) fluctuation in the exchange rate allow the agriculturists to export agricultural products. (iii) interest rate has a significant influence on agricultural exports in Nigeria. The study, therefore, recommended that government should provide incentives and enabling environment that aid the activities of agricultural exporters, intervene in the level of interest rate given to agriculturists or investors from banks, the government should ensure pre and post-shipment finance in local currency through rediscounting facility and exchange rate should be stabilized.