Abstract:
The study examines the role of commercial banks in Agricultural
development in Nigeria, spanning from 1986-2010. The study used
Ordinary Least Squares (OLS) techniques for analyzing the findings,
from the study, support the view that commercial bank loans do not
reach real farmers. Commercial banks loan to the Agricultural sector
has a positive growth 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 having positive growth, 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 reviewed so as to promote the
growth of the Agricultural sector.
