Bank Credits and Yield of Fisheries Production in Nigeria

International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue VI, June 2020 | ISSN 2454–6186

Bank Credits and Yield of Fisheries Production in Nigeria

Otubu, Osaretin Paul
 Department of Economics, Faculty of Social Sciences, University of Uyo, P.M.B 1017, Uyo Akwa Ibom State, Nigeria

Abstract:- The study examined/investigated bank credits and yield of fisheries production in Nigeria (1980 – 2019. The main aim of the study is to examine the effect of credits from the banking system to fisheries production in Nigeria. Econometric methods: ordinary least square, ADF, co-integration, error correction system and granger tests. Bank credits to fisheries production conform to apriori forecast/expectation and was also statistically significant/important at 5% level. All the independent variables/variants conform to apriori forecast, but arable land rate was not statistically significant. Bank credits was discovered to be necessary influence on the output of fisheries production in Nigeria. Causality runs from bank credits to fisheries production output in Nigeria. Cost of borrowing should be reduced. Government should provide the necessary basic amenities. The federal government should control import to boost agriculture in Nigeria.

Key Words: Bank loans, fisheries production, and growth

I. INTRODUCTION

Funds availability is an essential integer on which most productive ventures relies on. Primal economists known as Schumpeter (1934), McKinnon (1973) and Shaw (1973) identified financial institutions’ part in facilitating technological conception through their intervention part. This part according to them is done through the impact of channeling finances in the sort of loans or advances for venture to economic agents who requires them and can make use of them into the most fertile use. Thus, loaning which is settled in this discourse, as the linkage from which resources are designated for capital formation, and facilitates finance which leads to growth. Individual scholars like Fry (1988), King & Levine (1993), Levine (2004), De Serres, Kobayakawa, Slok & Vartia (2006), has corroborated the above declaration about the importance of credits from banks which leads to production development in a country.
Adediran and Obasan (2010) opined that the innovative and developing nations fecundity development tend to be upper in agriculture than in manufacturing, but in position of outturn growth manufacturing keeps doing better than agriculture. Acknowledging these sectors, the federal government of Nigeria place importance to the agricultural sector, enjoined the banks through CBN, to allocate a large proportion of their loanable credits to the agricultural sector, hence to motivate banks to achieve their goal, the Central Bank of Nigeria brought out the Agricultural Credit Guarantee Scheme (ACGS) to ensure funds existence for farmers.

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