Does Deposit Money Banks Credit to Agriculture Support Government Diversification Agenda in Nigeria? Issues for Legislative Consideration

Abstract

The Federal Government has over the years adopted several frameworks to enhance credit supply to the agricultural sector. Given these efforts, this brief examines available related data with a view to know whether Deposit Money Banks Credits (DMBs) to Agriculture support Government diversification agenda. Theoretically plausible findings emerged. First, the correlation statistics of 0.896 indicates that higher DMBs loans and advances have the potential to speed-up diversification of the Nigerian economy. Second, with a correlation statistics of 0.892 we deduced that higher DMBs loans and advances to the agricultural sector boost agriculture value added as a percentage of GDP.