Monetary Policy and Agricultural Gross Domestic Product Performance in Nigeria
Keywords:
Agriculture, Agricultural Credit, Exchange Rate, Monetary PoliciesAbstract
The present examines monetary policy and agricultural sector output exports in Nigeria
covering time series data from 1990-2025. The variables used are agricultural output exports, agricultural
credit guarantee scheme fund, exchange rate, commercial bank lending rate, monetary policy rate,
minimum rediscount ratio and open market operation. The Ordinary Least Square (OLS) multiple
regressions was used to estimate the parameters and the results revealed a positive and significant
relationship between AGF, EXR, OMO and agricultural output exports while a negative relationship exists
between CLR, MPR, MRR and agricultural output exports Only commercial bank lending rate appear to
be significant while others are insignificant. The study indicates that 68 % of the variation in ASE was
adequately explained by the variations in the included in the model as dependent variables. The study
concluded that AGF, CLR, ECR and OMO impacted on agricultural sector exports significantly within the
reviewed periods. The study recommended strict adherence to policy on agricultural credit guarantee
scheme, effective utilization of commercial bank’s credit loan to the agricultural sector and harmonization
of other monetary policies during periods.
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