Cost of Funds Deregulation on Agricultural Investments in Nigeria: An Analysis

Innocent Asuquo    
Arigor John Arigor    
Emmanuel Okon Eyo    


The study examined agricultural investments in the light of deregulating the cost of funds. Factors that determine aggregate credit volume to the sector within the costs of funds regulated and deregulated periods and; the growth level in agricultural credit within the deregulated period were the specific objectives. Secondary data were used, sourced from Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS). Data were analyzed using Co-integration technique and Real Credit Growth Rate Model. The Co-integration results showed that in the long-run, average interest lending rate and budgetary allocation were key variables on aggregate credit volume to agricultural sector. In the short-run, savings mobilized by financial institutions, the average lending rate, previous year?s average saving rate, inflation rate and government budgetary allocation to the sector were the significant variables on credit volume to agriculture. The result of the real credit growth rate within the deregulated period was 8.91%. Arising from this, therefore, the study recommended a complete unbundling of the markets as it will ensure funds availability for investments in the sector.Keywords: Agricultural investments, cost of funds, deregulation, Nigeria.JEL Classifications: G11, Q14DOI:

 Artículos similares

Sitikantha Parida    
In this paper, I study the impact of market competition on mutual fund marketing expenses. In a sample of US domestic equity mutual funds, I find that marketing expenses decrease with the competition. This effect is stronger for top-performing funds. The... ver más

Makmun Syadullah,Benny Gunawan Ardiansyah     Pág. 128 - 134
APEC Finance Ministers? Forum initiated the Asia Region Funds Passport (ARFP), a framework of multilateral cooperation to facilitate cross-border fund market. ARFP is the concept of cross-border distribution and operation of collective investment schemes... ver más

Jamal Ali,Hussin Abdullah,Mohd Saifoul Zamzuri Noor,K. Kuperan Viswanathan,Gazi Nurul Islam     Pág. 641 - 648
Subsidies can reduce the cost of fishing operations and enhance revenues that make fishing enterprises more profitable. However, in Malaysia, overcapitalization and excessive fishing capacity leading to the overexploitation of fishery resources. The stud... ver más

Mohammed Yussoff Ibrahim,Zulkipli Ghazali,Haseeb Ur Rahman     Pág. 6 - 11
The rapid change in climate and the high cost of controlling it are the issues caught much attention around the world especially during the last two decades. The CCSU (Carbon Capture, Storage and Utilization) is widely believed the mechanism to control b... ver más

Liudmila Vasilevna Nikolova,Dmitriy Grigorievich Rodionov,Angela Bahauovna Mottaeva     Pág. 246 - 252
The paper justifies the features of securitization of bank assets as a process and as a source of financing of innovation activity. The place of securitization among financial innovation instruments is defined for this purpose, the basic distinctive... ver más