Equipment Financing: Implications for Agricultural Productivity in Nigeria.

ZUBERU O Emmanuel, YUSUF P Salamatu, SALIHU Ramat O

Abstract


Agricultural operations in Nigeria over the past years have largely remained primitive, resulting in very low productivity due to inadequate application of modern technology. The cost of agricultural machinery like tractors, harvesters, planters and so on are astronomically high and unaffordable for an average Nigerian farmer. Also, there has been daunting challenges of farmers struggling to obtain financing to modernize or expand their farms, this is owing to the fact that, agricultural financing has for several years suffered major setbacks through some inhibiting factors, which include low agricultural productivity, lack of capital and inaccessibility to credit facilities, inadequate availability of inputs and storage facilities, lack of conducive and enabling environment, weak agricultural extension and out-dated sectoral infrastructure. Hence, this study investigates the Implications of Equipment financing on increased productivity output in the Agricultural sector in Nigeria. The choice of research design employed in this study is the archival and documentary research strategy, associated with the deductive approach, which involved secondary data collection. The population comprised 16 years data on total annual financial expenditure on agricultural equipment, agricultural productivity output and export earnings from 2000 to 2015 (16 years) forms the population of the study. Secondary data on cumulative annual expenditure on agricultural financial equipment (AEF), Agricultural productivity indicator and export earnings (EE) were employed. The findings from the study revealed that agricultural equipment financing has a significant impact on technological advancement of mechanized farming and that there is a significant relationship between technological advancement of mechanized farming and production output. the study therefore recommends that, efforts should be made by agricultural intervention agencies and financial institutions to increase credit finance allocated to agricultural equipment, which is a sustainable measure towards technological advancement in the sector.

 


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