AKSU Journal of Agricultural Economics, Extension and Rural Development

BANK NON-PERFORMING LOANS AND CROP SUB-SECTOR’S PERFORMANCE IN NIGERIA

Author:  Augustine O. Ntekim, Sunday B. Akpan and Nsikan E. Bassey

Abstract
The study examined the relationship between bank non-performing loan and crop sub-sector’s performance in Nigeria. Time series data were sourced from Central Bank of Nigeria (CBN), Food and Agricultural Organization (FAO) and World Bank. Exponential trend equation, a time dependent multiple regression model and Autoregressive distributed lag model (ARDLM) were used to analysed the data. Augmented Dickey-Fuller-Generalized Least Squares (ADF-GLS) and Augmented Dickey-Fuller (ADF) were used to check the stationarity or unit root of series. Result of the exponential trend analysis revealed that crop production (CRP) showed positive significant associations with time, whereas non-performing loans (NPL) showed negative significant associations with time. The estimated results of ADF-GLS showed that while inflation rate was stationary at level (1(0)), other variables were stationary at the first difference (1(1)). The estimated results of ADF showed that inflation rate and exchange rate were stationary at level (1(0)), while other variables were stationary at the first difference 1(1). Results also revealed that NPL had a negative impact on crop subsector production in both long and short run.