Advanced Research in Economics and Business Strategy Journal
Volume 7, Numéro 1, Pages 239-258
2026-06-30
The Effects Of Agricultural Credit Financing And Foreign Investments On Nigeria’s Non-oil Exports
Authors : Ulasi Joshua .
Abstract
Countries with a single export product often try to increase their range of export goods so as to improve their balance of payments, earn more foreign revenue and diversify their economy. Low-income countries like Nigeria with a purely agrarian economy usually find it extremely difficult to manage their foreign exchange, increase economic growth and control price increases when their imports always exceed exports. This is especially worsened by the fact that these countries usually neglect the development of other sectors of their economies when there is an abundant mineral resource. Focusing on the Nigerian economy, I investigated the link between the development of the country’s agricultural sector (which had been the mainstay of her economy since the 1970’s) and the volume of her non-oil exports. My objective was to find a relationship between investing in the Nigeria agricultural sector (as well as its credit financing through both commercial bank loans and the well pronounced Agricultural Credit Guarantee Scheme Fund which started in year 2000) and the volume of the country’s non-oil exports. Using time-series data obtained from the Nigerian Central Bank and the Food and Agricultural Organization from 1982 to 2024 and applying multiple linear regression, I observed a strong positive relationship between foreign investments into the country’s agricultural sector and her non-oil exports. I also observed a somewhat strong and positive relationship between Nigeria’s commercial bank loans to agriculture and her non-oil exports while the relationship between the Agricultural Credit Guarantee Scheme Fund loans and non-oil exports showed a statistically insignificant relationship.
Keywords
Agricultural credit ; Agricultural foreign investment ; Economic diversification ; economic growth ; exports
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