Re-Engineering Agriculture for Enhanced Performance Through Financing

15 Pages Posted: 1 Dec 2010

See all articles by Taiwo Ejiola Mafimisebi

Taiwo Ejiola Mafimisebi

affiliation not provided to SSRN

Adegboyega E. Oguntade

affiliation not provided to SSRN

Ojuotimi Mafimisebi

University of Ibadan - Department of Agricultural Economics

Date Written: August 20, 2010

Abstract

Insufficient institutional credit is a major contributor to the persistent poor performance of the Nigerian agricultural sector. To encourage financial institutions to increase lending to the sector, a partial credit guarantee scheme was instituted. The scheme commenced operations in 1978 with an authorized capital of N 100.00 million, subscribed to 60% and 40% by the Federal Government of Nigeria and the Central Bank of Nigeria, respectively. This paper presents an appraisal of the scheme. The results revealed that there has been continuous growth in paid-up share capital, total fund resources, maximum amount of loan obtainable by farmers, number and value of loans guaranteed, volume and value of loans fully repaid and volume and value of default claims settled. There was a long-run convergence between the number and volume of guaranteed loans and the agricultural GDP. This finding indicates the need to expand the quantum of funds available for guaranteeing agricultural loans to increase performance of the agricultural sector in the long run. This step is justified by the strategic role of agriculture in the Nigerian economy in terms of food and fiber production, job creation, income generation, poverty reduction and economic stability.

Keywords: Agricultural finance, credit guarantee, smallholders

Suggested Citation

Mafimisebi, Taiwo Ejiola and Oguntade, Adegboyega E. and Mafimisebi, Ojuotimi, Re-Engineering Agriculture for Enhanced Performance Through Financing (August 20, 2010). Journal of Economics, Finance & Administrative Science, Vol. 15, No. 29, December 2010, Available at SSRN: https://ssrn.com/abstract=1717956

Taiwo Ejiola Mafimisebi (Contact Author)

affiliation not provided to SSRN ( email )

Adegboyega E. Oguntade

affiliation not provided to SSRN ( email )

Ojuotimi Mafimisebi

University of Ibadan - Department of Agricultural Economics

Ibadan
Nigeria

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
118
Abstract Views
758
rank
293,152
PlumX Metrics