Development Finance Strategies, Agricultural Growth and Poverty Reduction in Emerging Economies: Evidence from Nigeria

Edward Ogbonnia Eleje; Eze Okechukwu Agha; Abel Haruna Habila

doi:doi:10.11648/j.ijafrm.20210603.13

| Peer-Reviewed

Development Finance Strategies, Agricultural Growth and Poverty Reduction in Emerging Economies: Evidence from Nigeria

Edward Ogbonnia Eleje, Eze Okechukwu Agha, Abel Haruna Habila

Published in International Journal of Accounting, Finance and Risk Management (Volume 6, Issue 3)

Received: 1 December 2020 Accepted: 27 July 2021 Published: 6 August 2021

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

Development finance issues have appeared very topical in extant literatures and notable political cum socioeconomic discussions in recent time due basically to its desideratum and criticality to aggregate development of emerging economies. This article investigated development finance strategies and their effects on agriculture and poverty reduction in Nigeria. Specifically, the study examined the impact of agro-financing on agricultural development, and; the impact of industrial financing on poverty eradication in Nigeria. A computer based regression and correlation analysis aided by the IBM SPSS software version 23 was employed to test two formulated hypotheses of the study. Based on the findings from the empirical evaluation, the researcher made two major conclusions that; agro-finance does not have significant positive effect on agricultural development in Nigeria. Secondly, industrial finance does not have significant positive effect on poverty eradication in Nigeria. In line with these conclusions, the study recommends that government should place higher priority on directed credit control scheme such as ACGSF to enable such schemes yield the desired result of improving the agricultural sector and poverty reduction. Secondly, directed credit programmes to SMEs like small and medium enterprise equity investment scheme (SMEEIS) should be supervised adequately and made to work effectively. Lastly, proactive surveillance should be activated by government to checkmate unhealthy practices by lending institutions which could impinge lending integrity and dampen the trust of investors.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 6, Issue 3)
DOI	10.11648/j.ijafrm.20210603.13
Page(s)	85-93
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Development Finance, Agricultural Growth, Poverty Reduction

References

[1]	Abu, N. (2009), “Does Stock Market Development Raise Economic Growth? Evidence from Nigeria,” Journal of Banking and Finance. 1 (1), 15-26.
[2]	Adamu, J. A. and Sanni, I. (2005), “Stock Market Development and Nigerian Economic Growth” Journal of Economic and Allied Fields, 2 (2), 116-132.
[3]	Akinboyo, O. L. (2007), “Micro Finance Bank: Unlocking the Potentials of Micro-Business Activities of the Nigerian Rural Economy” Central Bank of Nigeria Bullion, Vol; 31, No. 1.
[4]	Arestis, P. and P. Demetriades (1997), “Financial Development and Economic Growth: Assessing the Evidence”, Economic Journal, 107: 783-799.
[5]	Arestis, P., Demetriades, P. O. and Luintel, K. B. (2001), “Financial Development and Economic Growth: The Role of Stock Markets”, Journal of Money, Credit, and Banking, 33: 16-41.
[6]	CBN, (2010), Central Bank of Nigeria Annual Report and Statement of Account, Government.
[7]	Cem, Disbudak (2010), “Analyzing the Bank Credit-Economic Growth Nexus in Turkey” European Journal of Economics, Finance and Administrative Sciences, ISSN 1450-2275 Issue 23.
[8]	Christopoulos, D. K. and E. G. Tsionas (2003), “Financial Development and Economic Growth: Evidence from Panel Unit Root and Cointegration Tests”, Journal of Development Economics.
[9]	David, M. (2011), “Agricultural Finance and Development”, USDA Global Agricultural Information Network, Gain Report No. 10/17/2011.
[10]	Demetriades, P. and Andrianova, S. (2004) “Finance and Growth: What We Know and What We Need to Know” University of Leicester Publication.
[11]	Demetriades, P. and Hussein, K. (1996), “Does Financial Development Cause Economic Growth? Time Series Evidence from 16 Countries”, Journal of Development Economics, 51: 387-411.
[12]	Eleje, E. O. & Adebayo, G. A. (2016), “Development Financing and Economic Performance in Developing Countries: Empirical Evidence from Nigeria” Salem Journal of Management Sciences, Vol. 2 No. 2, Pg. 1-16.
[13]	Eleje, E. O. (2013), “Growth Determinant of Primary Commodity Export Market in Nigeria” Defended Ph.D Thesis, Banking and Finance Department, University of Nigeria Nsukka (UNN).
[14]	Eleje, E. O., Nduka, J. A. and Eze, M. C. (2007), “Problems and Prospects of Small and Medium Scale Enterprises in Nigeria”, M.Sc. group Seminar Paper, Presented to the Department of Banking and Finance, University of Nigeria, Enugu Campus, October.
[15]	Eleje, E. O. and Ani, W. (2012), “Banks’ Credit and Economic Performance in Developing Nations: Empirical Evidence from the Production Sector of the Nigerian Economy”, India Journal of Finance, Vol. 10 Pp 6-18.
[16]	Essien, E. N. And Akpan, N. I. (2007), “Credit Policies and Private Sector Investment in Nigeria” Central Bank of Nigeria Bullion, Vol. 31, No. 1.
[17]	Ewah, S. O. E., Essang, A. E. and Bassey J. U. (2009), “Appraisal of Capital Market Efficiency on Economic Growth in Nigeria” International Journal of Business and Management, 4 (12), 219-225.
[18]	Ezeoha, A., Ebele, O. and Ndidi, O. O. (2009), “Stock Market Development and Private Investment Growth in Nigeria" Journal of Sustainable Development in Africa, 11 (2), 20-35.
[19]	Garber, J. (2010), “Impact of Development Banks Agricultural Financing on Economic Growth of Nigeria” Unpublished M.Sc Dissertation Submitted to the Postgraduate School, Ahmadu Bello University, Zaria.
[20]	Goldsmith, R. W. (1969), “Financial Structure and Development” New Haven, Yale University.
[21]	Gurley, J. and Shaw, E. (1967), “Financial Structure and Economic Development” Economic Development and Cultural Change, 15 (3) 257-268.
[22]	Ijaiya, M. A. (2003), “Commercial Bank Credits to the Agricultural Sector and the Nigerian Economy: An Analysis of the Future Trend” A Journal of Department of Business Administration, Vol. 3 No. 1.
[23]	Jung, W. S. (1986), "Financial Development and Economic Growth: International Evidence”, Economic Development and Cultural Change, 34: 333-346.
[24]	Kolapo, F. T. and Adaramola, A. O. (2012), “The Impact of the Nigerian Capital Market on Economic Growth (1990-2010)” International Journal of Developing Societies 1 (1) 11–19.
[25]	Levine, Rose (2003), “Finance and Growth: Theory, Evidence, and Mechanisms” University of Minnesota and NBER Paper.
[26]	Lucas, R. E. (1988), "On the Mechanics of Economic Development”, Journal of Monetary Economics, 22: 3-42.
[27]	McKinnon, R. I. (1973), “Money and Capital in Economic Development”, Washington, DC: Brooking.
[28]	Mishkin, F. S. (2007), “The Economics of Money and Financial Markets” Wesley, Pearson/Addison.
[29]	NAPEP (2013), “International Day for the Eradication of Poverty” Retrieved Online 14/01/14 via http://www.napep.gov.ng.
[30]	Neusser, K. and Kugler, M. (1998), “Manufacturing Growth and Financial Development: Evidence from OECD Countries”, Review of Economics and Statistics, 80: 636-646.
[31]	Nyong, M. O. (1997). Capital market development and long-run economic growth: Theory, Evidence and Analysis" First Bank Review, 13-38.
[32]	Nzotta, S. M. (1999), Money, Banking and Finance: Theory and Practice, Lagos, Intercontinental Publishing.
[33]	Obamiro, J. K. (2005), “Nigerian Economy: Growth and the Role of Stock Market” Journal of Economic and Financial Studies, 2 (2).
[34]	Obilor, S. I. (2013), “The Impact of Commercial Banks’ Credit to Agriculture on Agricultural Development in Nigeria: An Econometric Analysis” International Journal of Business, Humanities and Technology Vol. 3 No. 1.
[35]	Ochejele, J. J. (2000) Impact of Commercial Bank’s Credit on Agricultural Output in Nigeria, University of Jos Institutional Repository Retrieved 28/06/13 via http://dspace.unijos.edu.ng/handle/10485/1536.
[36]	Okafor, F. O. (2011), “50 Years of Banking Sector Reforms in Nigeria (1960-2010) Past Lessons: Future Imperatives” New Haven Enugu, Ezu Books.
[37]	Olaitan, M. A. (2006), “Finance for Small and Medium Enterprises: Nigeria’s Agricultural Credit Guarantee Scheme Fund”. Journal of International Farm Management 3 (2).
[38]	Oluitan (Undated), “Bank Credit And Economic Growth: The Nigerian Experience” Unpublished.
[39]	Onayemi S. O and Akintoye, I. R. (2009), “Diversifying the Productive Base of Nigeria, an Economtric Approach to the Assessment of Non-Oil Export Promotion Strategies”, International Research Journal of Finance and Economics ISSN 1450-2887 Issue 24.
[40]	Onwumere, J. U. J (2005), “Business and Economic Research Methods” Lagos, Don-Vinton.
[41]	Osinubi, T. S. and Amaghionyeodiwe, L. A. (2003), “Stock Market Development and Long-Run Growth in Nigeria, Journal of African Business, 4 (3), 103-129.
[42]	Patrick, H. T. (1966), “Financial Development and Economic Growth in Underdeveloped Countries”, Journal of Economic Development and Cultural Change 14 (1) 174-189.
[43]	Robinson, J. (1952), "The Generalization of the General Theory”, In: the Rate of Interest and Other Essays, London: MacMillan Publisher.
[44]	Rousseau, P. L. (1998), “The Permanent Effects of Innovation on Financial Depth: Theory and US Historical Evidence from Unobservable Components Models”, Journal of Monetary Economics, 42: 387-425.
[45]	Rousseau, P. L. (1999), “Finance, Investment, and Growth in Meiji-Era Japan”, Japan and the World Economy, 11: 185-198.
[46]	Rousseau, P. L. and R. Sylla (2001), “Financial System, Economic Growth, and Globalization”, National Bureau of Economic Research Working Paper No. 8323.
[47]	Rousseau, P. L. and Sylla, R. (1999), “Emerging Financial Markets and Early U.S. Growth”, National Bureau of Economic Research Working Paper No. 7448.
[48]	Rousseau, P. L. and Wachtel, P. (1998), “Financial Intermediation and Economic Performance: Historical Evidence from Five Industrial Countries”, Journal of Money, Credit and Banking, 30: 657-678.
[49]	Schumpeter, J. A. (1912), “Theorie Der Wirtschaftlichen Entwicklung. Leipzig: Dunker and Humblot”, The Theory of Economic Development, Translated by Opie, R. Cambridge, MA: Harvard.
[50]	Simon, M. K. & Goes, J. (2013), Dissertation and Scholarly Research: Recipes for Success. Seattle, WA: Dissertation Success LLC.
[51]	Thisday, (2013), “Banks and Agriculture Funding in Nigeria”, ThisdayLive Saturday 29 June, Retrieved 28/06/13 via http//www.thisdaylive.com.
[52]	Xu, Z. (2000), “Financial Development, Investment, and Growth”, Economic Inquiry, 38: 331-344.

Cite This Article

Plain Text BibTeX RIS

APA Style

Edward Ogbonnia Eleje, Eze Okechukwu Agha, Abel Haruna Habila. (2021). Development Finance Strategies, Agricultural Growth and Poverty Reduction in Emerging Economies: Evidence from Nigeria. International Journal of Accounting, Finance and Risk Management, 6(3), 85-93. https://doi.org/10.11648/j.ijafrm.20210603.13

Copy | Download

ACS Style

Edward Ogbonnia Eleje; Eze Okechukwu Agha; Abel Haruna Habila. Development Finance Strategies, Agricultural Growth and Poverty Reduction in Emerging Economies: Evidence from Nigeria. Int. J. Account. Finance Risk Manag. 2021, 6(3), 85-93. doi: 10.11648/j.ijafrm.20210603.13

Copy | Download

AMA Style

Edward Ogbonnia Eleje, Eze Okechukwu Agha, Abel Haruna Habila. Development Finance Strategies, Agricultural Growth and Poverty Reduction in Emerging Economies: Evidence from Nigeria. Int J Account Finance Risk Manag. 2021;6(3):85-93. doi: 10.11648/j.ijafrm.20210603.13

Copy | Download

@article{10.11648/j.ijafrm.20210603.13,
  author = {Edward Ogbonnia Eleje and Eze Okechukwu Agha and Abel Haruna Habila},
  title = {Development Finance Strategies, Agricultural Growth and Poverty Reduction in Emerging Economies: Evidence from Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {6},
  number = {3},
  pages = {85-93},
  doi = {10.11648/j.ijafrm.20210603.13},
  url = {https://doi.org/10.11648/j.ijafrm.20210603.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20210603.13},
  abstract = {Development finance issues have appeared very topical in extant literatures and notable political cum socioeconomic discussions in recent time due basically to its desideratum and criticality to aggregate development of emerging economies. This article investigated development finance strategies and their effects on agriculture and poverty reduction in Nigeria. Specifically, the study examined the impact of agro-financing on agricultural development, and; the impact of industrial financing on poverty eradication in Nigeria. A computer based regression and correlation analysis aided by the IBM SPSS software version 23 was employed to test two formulated hypotheses of the study. Based on the findings from the empirical evaluation, the researcher made two major conclusions that; agro-finance does not have significant positive effect on agricultural development in Nigeria. Secondly, industrial finance does not have significant positive effect on poverty eradication in Nigeria. In line with these conclusions, the study recommends that government should place higher priority on directed credit control scheme such as ACGSF to enable such schemes yield the desired result of improving the agricultural sector and poverty reduction. Secondly, directed credit programmes to SMEs like small and medium enterprise equity investment scheme (SMEEIS) should be supervised adequately and made to work effectively. Lastly, proactive surveillance should be activated by government to checkmate unhealthy practices by lending institutions which could impinge lending integrity and dampen the trust of investors.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Development Finance Strategies, Agricultural Growth and Poverty Reduction in Emerging Economies: Evidence from Nigeria
AU  - Edward Ogbonnia Eleje
AU  - Eze Okechukwu Agha
AU  - Abel Haruna Habila
Y1  - 2021/08/06
PY  - 2021
N1  - https://doi.org/10.11648/j.ijafrm.20210603.13
DO  - 10.11648/j.ijafrm.20210603.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 85
EP  - 93
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20210603.13
AB  - Development finance issues have appeared very topical in extant literatures and notable political cum socioeconomic discussions in recent time due basically to its desideratum and criticality to aggregate development of emerging economies. This article investigated development finance strategies and their effects on agriculture and poverty reduction in Nigeria. Specifically, the study examined the impact of agro-financing on agricultural development, and; the impact of industrial financing on poverty eradication in Nigeria. A computer based regression and correlation analysis aided by the IBM SPSS software version 23 was employed to test two formulated hypotheses of the study. Based on the findings from the empirical evaluation, the researcher made two major conclusions that; agro-finance does not have significant positive effect on agricultural development in Nigeria. Secondly, industrial finance does not have significant positive effect on poverty eradication in Nigeria. In line with these conclusions, the study recommends that government should place higher priority on directed credit control scheme such as ACGSF to enable such schemes yield the desired result of improving the agricultural sector and poverty reduction. Secondly, directed credit programmes to SMEs like small and medium enterprise equity investment scheme (SMEEIS) should be supervised adequately and made to work effectively. Lastly, proactive surveillance should be activated by government to checkmate unhealthy practices by lending institutions which could impinge lending integrity and dampen the trust of investors.
VL  - 6
IS  - 3
ER  -

Copy | Download

Author Information

Edward Ogbonnia Eleje

Department of Banking and Finance, Federal University, Wukari, Nigeria
Eze Okechukwu Agha

Liquidity Management Unit, Treasury Department Keystone Bank Limited, Lagos, Nigeria
Abel Haruna Habila

Department of Banking and Finance, Federal University, Wukari, Nigeria

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Edward Ogbonnia Eleje, Eze Okechukwu Agha, Abel Haruna Habila. (2021). Development Finance Strategies, Agricultural Growth and Poverty Reduction in Emerging Economies: Evidence from Nigeria. International Journal of Accounting, Finance and Risk Management, 6(3), 85-93. https://doi.org/10.11648/j.ijafrm.20210603.13

Copy | Download

ACS Style

Edward Ogbonnia Eleje; Eze Okechukwu Agha; Abel Haruna Habila. Development Finance Strategies, Agricultural Growth and Poverty Reduction in Emerging Economies: Evidence from Nigeria. Int. J. Account. Finance Risk Manag. 2021, 6(3), 85-93. doi: 10.11648/j.ijafrm.20210603.13

Copy | Download

AMA Style

Edward Ogbonnia Eleje, Eze Okechukwu Agha, Abel Haruna Habila. Development Finance Strategies, Agricultural Growth and Poverty Reduction in Emerging Economies: Evidence from Nigeria. Int J Account Finance Risk Manag. 2021;6(3):85-93. doi: 10.11648/j.ijafrm.20210603.13

Copy | Download

@article{10.11648/j.ijafrm.20210603.13,
  author = {Edward Ogbonnia Eleje and Eze Okechukwu Agha and Abel Haruna Habila},
  title = {Development Finance Strategies, Agricultural Growth and Poverty Reduction in Emerging Economies: Evidence from Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {6},
  number = {3},
  pages = {85-93},
  doi = {10.11648/j.ijafrm.20210603.13},
  url = {https://doi.org/10.11648/j.ijafrm.20210603.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20210603.13},
  abstract = {Development finance issues have appeared very topical in extant literatures and notable political cum socioeconomic discussions in recent time due basically to its desideratum and criticality to aggregate development of emerging economies. This article investigated development finance strategies and their effects on agriculture and poverty reduction in Nigeria. Specifically, the study examined the impact of agro-financing on agricultural development, and; the impact of industrial financing on poverty eradication in Nigeria. A computer based regression and correlation analysis aided by the IBM SPSS software version 23 was employed to test two formulated hypotheses of the study. Based on the findings from the empirical evaluation, the researcher made two major conclusions that; agro-finance does not have significant positive effect on agricultural development in Nigeria. Secondly, industrial finance does not have significant positive effect on poverty eradication in Nigeria. In line with these conclusions, the study recommends that government should place higher priority on directed credit control scheme such as ACGSF to enable such schemes yield the desired result of improving the agricultural sector and poverty reduction. Secondly, directed credit programmes to SMEs like small and medium enterprise equity investment scheme (SMEEIS) should be supervised adequately and made to work effectively. Lastly, proactive surveillance should be activated by government to checkmate unhealthy practices by lending institutions which could impinge lending integrity and dampen the trust of investors.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Development Finance Strategies, Agricultural Growth and Poverty Reduction in Emerging Economies: Evidence from Nigeria
AU  - Edward Ogbonnia Eleje
AU  - Eze Okechukwu Agha
AU  - Abel Haruna Habila
Y1  - 2021/08/06
PY  - 2021
N1  - https://doi.org/10.11648/j.ijafrm.20210603.13
DO  - 10.11648/j.ijafrm.20210603.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 85
EP  - 93
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20210603.13
AB  - Development finance issues have appeared very topical in extant literatures and notable political cum socioeconomic discussions in recent time due basically to its desideratum and criticality to aggregate development of emerging economies. This article investigated development finance strategies and their effects on agriculture and poverty reduction in Nigeria. Specifically, the study examined the impact of agro-financing on agricultural development, and; the impact of industrial financing on poverty eradication in Nigeria. A computer based regression and correlation analysis aided by the IBM SPSS software version 23 was employed to test two formulated hypotheses of the study. Based on the findings from the empirical evaluation, the researcher made two major conclusions that; agro-finance does not have significant positive effect on agricultural development in Nigeria. Secondly, industrial finance does not have significant positive effect on poverty eradication in Nigeria. In line with these conclusions, the study recommends that government should place higher priority on directed credit control scheme such as ACGSF to enable such schemes yield the desired result of improving the agricultural sector and poverty reduction. Secondly, directed credit programmes to SMEs like small and medium enterprise equity investment scheme (SMEEIS) should be supervised adequately and made to work effectively. Lastly, proactive surveillance should be activated by government to checkmate unhealthy practices by lending institutions which could impinge lending integrity and dampen the trust of investors.
VL  - 6
IS  - 3
ER  -

Copy | Download