Abstract:

This study examined the impact agricultural credit guarantee scheme fund on agricultural output in Nigeria from 1986-2016. The objective of the study were to access the impact of the Agricultural Credit Guarantee Scheme to the various agricultural subsectors on the output of those subsectors. The Granger causality test, Johansen Cointegration test and the autoregressive distributed lag model where employed to analyse the data. The result showed that there is a positive but insignificant relationship between agricultural credit guarantee scheme fund and the total agricultural output in Nigeria. This study recommends that Federal government should encourage the participating banks by making sure that bank claims as a result of defaults by the borrowers are paid promptly and lending institutions should give loans on time to the borrowers when it is requested for as improper timing might lead to poor loan repayment rate.