Abstract:
This study utilized data spanning from 1990 to 2022 to investigateimpact of government expenditure on agricultural output in Nigeria.
Employing the Autoregressive Distributive Lag (ARDL) methods, the
study revealed a negative relationship between both government credit to
agriculture and government expenditure on agriculture with agricultural
output. The paper further recommended that Effective management of
allocated resources in the agricultural sector is crucial, as merely increasing the
budgetary allocation to the sector does not guarantee improved performance. To
enhance the sector's functioning, consistent implementation of government
policies and programs is essential also Many farmers are hesitant to seek loans
from financial institutions due to concerns about collateral security and high
interest rates. Therefore, the government should enact legislation that fosters a
favorable lending environment for agricultural investments. Additionally,
significant funding should be directed towards banks specializing in agriculture,
such as Agricultural Development Banks (ADBs) and similar institutions, to
support farming operations
