Research Article

Formal Financing, Country Risks and Livestock Output in Nigeria

Lukman Adebayo-Oke Abdulrauf1*, Sheriff Akanji Ibrahim1, Safura Abdullahi Sikiru2, Jimoh Ismail2
1 Department of Accounting and Finance, Kwara state University, Malete
2 Department of Banking and Finance, Kwara State Polytechnics, Ilorin
* Corresponding author: lukmanadebayookeabdulrauf@femsbukjournals.org.ng/bjms
Published: Dec, 2024
DOI: 10.67894/bjms.2024.uvan6gqi
Pages: 85-98

Abstract

Livestock, which accounts for 30% of employment among Nigeria's rural population, is essential to the country's local economy and efforts to reduce poverty. The growth of the livestock subsector is hindered, nevertheless, by a range of concerns, such as political, economic, and financial uncertainty, as well as insufficient government budget allocation. In light of this, the purpose of this study is to examine how formal funding and national hazards affect Nigeria's livestock production. Secondary data for the years 1995–2021 were gathered from the International Country Risk Guide (ICRG) and the Central Bank of Nigeria (CBN). Using E-view 9, the study used both descriptive and inferential statistics. Before and after the given model was estimated using Autoregressive Distributive Lag (ARDL), a variety of diagnostic tests were performed. The agricultural guarantee credit scheme funds (AGC) are statistically significant at the 5% level of significance, according to the short term ARDL model. Other variables, such as commercial bank credits (CBC), budgetary allocation to agriculture (BAA), and exchange rate control variable (EXR), are not statistically significant in the short run. The control variable of prime lending rate (PLR, 0.0653) is statistically significant at 5% level of significance. Among other things, the study suggests that banks create customized credit solutions that address the particular requirements of cattle farmers, offer flexible periods for repayment, and form alliances with input suppliers and agriculture specialists. 

Keywords

Formal Financing Livestock Output Agricultural Credit

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How to Cite

Abdulrauf, L. A., Ibrahim, S. A., Sikiru, S. A., & Ismail, J. (2024). Formal Financing, Country Risks and Livestock Output in Nigeria. Bayero Journal of Management Sciences, 6(2), 85-98. https://doi.org/10.67894/bjms.2024.uvan6gqi

L. A. Abdulrauf, S. A. Ibrahim, S. A. Sikiru, and J. Ismail, "Formal Financing, Country Risks and Livestock Output in Nigeria," Bayero Journal of Management Sciences, vol. 6, no. 2, pp. 85-98, December 2024. doi: 10.67894/bjms.2024.uvan6gqi

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