Effect of Commercial Bank Credit Facilities to Agriculture on Real Output Growth in Nigeria

The study examined the effect of commercial bank credit facilities to agriculture on real output growth in Nigeria. It was established that Commercial bank credit facilities to agriculture can be described as a financial institution that grant loans, accept deposit, and other financial product such as saving account and certificate of deposit to businesses, as proposed to a retail bank that provides similar financial product to individuals. The study equally adopted some mathematical and econometrics techniques such as ADF for unit root test, ARDL model for long run and short run coefficient, Bound test and Diagnostic test. The study revealed that commercial bank credit facilities to agriculture have positive and significant effect on real output growth in Nigeria. However, the study equally concluded and recommended that Machinery should be set up to ensure that loans given to farmers are utilized for the purpose. Farmers caught using the loans for other purposes should be sanctioned. And also recommended that It is important that commercial bank credit with low interest rate be made available to famers in order to assist them procure the needed precursor in terms of agricultural facilities. As indication from findings shows that CBCFAs has positive impact on agricultural output growth.