Impact of Government Spending on Agricultural Output in Nigeria: (1990-2022)

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