Acta Universitatis Danubius. Œconomica, Vol 15, No 7 (2019)

Financing Role in Structural Transformation in Nigeria

David Mautin Oke, Oluwaseyi Omowunmi Popogbe


This study adopts a comparative approach to examine the role of financing on structural transformation in Nigeria. The Autoregressive Distributed Lag (ARDL) analysis was carried out and we found out a long run relationship between financing and agricultural output as well as between financing and industrial output. However, bank financing is more concentrated on the industrial sector than the agricultural sector. There is increased output in the industrial sector due to increase in money supply while the funds from the Agricultural Credit Guarantee Scheme to the agricultural sector has promoted increase in the agricultural sector’s output. The study recommends that while policies should be geared towards enabling further development of the industrial sector, it is also vital to consciously drive the agricultural sector to increase production. The agricultural sector, if well-funded, has the capacity to bloom and form a strong linkage with the industrial sector.


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