Impact of Agricultural Credit Guarantee Scheme Fund (ACGSF)On Economic

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Growth in Nigeria (1978-2011)

The study examines the impact of Agricultural Credit Guarantee Scheme Fund (ACGSF) on economic growth in Nigeria from 1978 to 2011.

GDP, Inflation, loan to cash crops and loan to livestock are the variables used.

The research examines the long run relationship between credit to farmers and economic growth.

It also shows the direction of causality between farmers’ credit and economic growth.

The vector autoregressive model was used, the Augmented Dickey Fuller (ADF) and Phillips Perron (PP) tests for unit roots were conducted.

The study found out that there is a long run relationship between inflation and loan to cash crops as well as inflation and loan to livestock.

It is therefore recommended that government should ensure adequate disbursement and monitoring of the loans given to the farmers, as well as provide an enabling environment through its fiscal activities to promote their activities and to regulate the price fluctuations so as to restore confidence in them.

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