Formal Financing, Country Risks and Livestock Output in Nigeria
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Date
2024
Journal Title
Journal ISSN
Volume Title
Publisher
Bayero Journal of Management Sciences
Abstract
Livestock, which accounts for 30% of employment among Nigeria's rural population, is essential
to the country's local economy and efforts to reduce poverty. The growth of the livestock sub
sector is hindered, nevertheless, by a range of concerns, such as political, economic, and
financial uncertainty, as well as insufficient government budget allocation. In light of this, the
purpose of this study is to examine how formal funding and national hazards affect Nigeria's
livestock production. Secondary data for the years 1995–2021 were gathered from the
International Country Risk Guide (ICRG) and the Central Bank of Nigeria (CBN). Using E-view
9, the study used both descriptive and inferential statistics. Before and after the given model was
estimated using Autoregressive Distributive Lag (ARDL), a variety of diagnostic tests were
performed. The agricultural guarantee credit scheme funds (AGC) are statistically significant at
the 5% level of significance, according to the short term ARDL model. Other variables, such as
commercial bank credits (CBC), budgetary allocation to agriculture (BAA), and exchange rate
control variable (EXR), are not statistically significant in the short run. The control variable of
prime lending rate (PLR, 0.0653) is statistically significant at 5% level of significance. Among
other things, the study suggests that banks create customized credit solutions that address the
particular requirements of cattle farmers, offer flexible periods for repayment, and form
alliances with input suppliers and agriculture specialists.