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AUTHOR(S): Damilola Ayomiposi Makinde, Victoria Abosede Akinjare, Alexander Ehimare Omankhanlen, Areghan Akhanolu Isibor
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TITLE The Effect of Anchor Borrower’s Programme on Agricultural Output in Nigeria |
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ABSTRACT The study investigated the anchor borrowers’ fund effect on the agricultural output in Nigeria. Repayment of previously lent loans aren’t repaid which is causing a shortage in the spread of the loans. The main objectives are to examine three of the CBN agricultural intervention programs, that is, the (Interest drawback, the Agricultural Credit Guarantee Scheme fund, and the Anchors Borrowers Program) between the period of 30 years, between 1991 and 2020. A linear model showing the relationship between the dependent and the explanatory variables was performed using the OLS method. The study’s result shows that the coefficient of the interest drawback program and the Anchors Borrowers Programme are both positive and statistically significant at 5% while the coefficient of the Agricultural Credit Guarantee Scheme fund proves to be negative. This implies that while the interest drawback program and the Anchors Borrowers program contribute to the output of the agricultural sector via its awareness, the Agricultural Credit Guarantee Scheme funds have not impacted agricultural output. This could also imply that the fund is not utilized by the beneficiaries in this sector. The study therefore recommends that banks should make use of agricultural credit and no other types of credit vehicles in promoting growth in the agricultural sector. In addition, banks need to guarantee that loans are directed towards their intended agricultural purpose, rather than being used for other purposes. Individuals mustn't misappropriate these funds. Furthermore, policymakers should implement the anchor borrowers program, ACGSF, and interest drawback program with an extensive campaign strategy, as this will ultimately improve the productivity of the sector and foster long-term economic growth. |
KEYWORDS Anchor borrowers funds, Interest drawback, Productivity, Agricultural Credit Guarantee Scheme Fund |
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Cite this paper Damilola Ayomiposi Makinde, Victoria Abosede Akinjare, Alexander Ehimare Omankhanlen, Areghan Akhanolu Isibor. (2024) The Effect of Anchor Borrower’s Programme on Agricultural Output in Nigeria. International Journal of Agricultural Science, 9, 1-10 |
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