The study examines the role of commercial banks in Agricultural development in Nigeria, spanning from 1986-2014. The methodology used is ordinary least squares (OLS), using P.C give 8.00 package. The findings from the study support the view that commercial bank loans are not getting to red farmers. The commercial banks loan to Agricultural sector is positive and significant at 5% level, contributing 67.65 percent variations in Real Agricultural output in Nigeria. Real interest rate and real exchange rate are both positive, but not significant at 5% percent level.
The positive real interest rate shows that Investments in Agricultural sector in Nigeria has a very high rate of return. The findings suggest that real interest and exchange rates should be properly managed and periodically received so as to promote the growth of the Agricultural sector.
1.1 Introduction
In this section, an Empirical Study of the Role of Commercial Banks in Agricultural Development in Nigeria is discussed, with relevant and recent citations. As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the aim and objectives of the study. Others are significance of the study, scope of work, research hypothesis and questions, limitation of the study and definition of terms.