By: Chibunna Onyebuchi Onwubiko, Roseline Chinasa Agbaraevoh
Pages: 139–166, Volume: 2, Number: 2
Published by: AEFUNAI Journal of Economics, Finance and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike, 9/1/2025, 2025
ISSN (Electronic): 2536-6742
DOI: 10.48028/iiprds/aefunaijefds.v2.i2.08
Impact of Microfinance Credit on Agricultural Productivity in Nigeria
Abstract:
This study examined the impact of microfinance credit on agricultural productivity in Nigeria. The objectives were to assess the impact of microfinance banks loans and advances on agricultural sector output in Nigeria; determine the relationship between microfinance banks agricultural credit guarantee scheme and agricultural sector output in Nigeria and evaluate the relationship between microfinance banks lending rate on agricultural sector output in Nigeria. Ex-post facto design was adopted. Data were collected from CBN Statistical Bulletin covering the period 1992 to 2023. Statistical analysis tool applied was multiple regression. Findings revealed that microfinance banks loans and advances have positive and significant impact on agricultural sector output in Nigeria. It also showed that microfinance banks agricultural credit guarantee scheme has no significant impact on agricultural sector output in Nigeria. It was further revealed that microfinance banks lending rate have no significant impact on agricultural sector output in Nigeria. The study concluded that microfinance credit has impacted positively on agricultural productivity in Nigeria for the period under review. Based on the findings, it is recommended that the government and Central Bank of Nigeria must ensure that microfinance banks provide more credit facilities to the rural famers to address the issue of inability to access capital for agricultural development and productivity. Lending rate for farmers should be reduced.
Keywords: Microfinance credit, Agricultural productivity, Smallholder farmers, Poverty reduction, Nigeria
How to Cite
Onwubiko, C. O., & Agbaraevoh, R. C. (2025). Impact of Microfinance Credit on Agricultural Productivity in Nigeria. AEFUNAI Journal of Economics, Finance and Development Studies (AEFUNAI-JEFDS), Vol. 2(2), 139–166.
Creative Commons Attribution 4.0 International License (CC BY 4.0)
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