Effect of Interest Rates on Agricultural Investment in Nigeria
Agricultural Economics — 2025, Undergraduate
This study examined the effect of interest rates on agricultural investment in Nigeria. A descriptive survey was conducted with farmers and agribusiness operators using a structured questionnaire. Data were analysed using descriptive statistics and regression analysis. The findings revealed that high borrowing costs significantly reduced investment in machinery, irrigation, and modern inputs, while low-cost credit encouraged expansion. The study observed that farm investment was also constrained by risk and limited access to collateral. It recommends subsidised agricultural lending, long-tenure credit, and risk-sharing instruments.
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