A Critical evaluation Of The Nigerian Agricultural Export Financing By The Central Bank Of Nigeria (1990-2000)

Abstract

The study evaluated the effectiveness of export financing in enhancing agricultural export in Nigeria. Secondary time series data covering the period of 1990 to 2000 were used while econometric and statistical analysis were employed to analyze the data. The result showed that high exchange rate, interest rates and inflationary rate seriously affect the value of agricultural export. Also export credit disbursement have on average been declining since 1993 and repayments were very high. An aggregate repayment of (N17, 562.9m) in 1999 exceeded aggregate disbursement (N17, 396.5m) indicating positive response of the subsector to credit utilization. Further, export trade was found to be characterized by the vagaries of macro-economic variables. Based on these findings, it is recommended among others, an increase in export credit disbursement, provision of adequate incentives for agricultural production, promoting the activities of the Nigerian Export Promotion Council (NEPC) and Nigerian Export Import Bank (NEXIM), adequate quality control system, proper management of macro-economic variables as well as maintenance of stability through discipline and better co-ordination of fiscal and monetary policies be encouraged in order to improve and boost agricultural export in Nigeria.



Key words: Evaluation, agricultural export, financing, credit disbursement, fiscal, monetary policies.

Journal of Agriculture, Forestry and the Social Sciences Vol.2(2) 2004: 15-27