Effect of Agricultural Credit Guarantee Scheme Fund on Real Output Growth in Nigeria

The study examined the Effect of Agricultural Credit Guarantee Scheme Fund on Real Output in Nigeria. It was established that ACGSF is described as government acting as the middlemen between the farmer and providers of credit. Government also act as a guarantor to farmers for credit facilities to enable easy access to such facilities and reduce the inherent risk associated to in making such facilities available. The study equally adopted some mathematical and econometrics techniques such as ADF for unit root test, ARDL model for long run and short run coefficient, Bound test and Diagnostic test. The findings revealed that ACGSF have positive and significant impact on Real output growth on long run at coefficient value of 3.1678 and probability value of 0.007. This implies that Agricultural credit guarantee scheme fund has positive and significant effect on real output growth in Nigeria. The study equally recommended that the implementation of agricultural financing schemes should be well monitored by both Government and Non-governmental agencies. From the research findings, there were evidence that such scheme has positive impact on agricultural productivity and economic growth. Hence, judicious monitoring of agricultural policies and programmes will go a long way in combatting unnecessary diversion of agricultural funds.