A STATISTICAL STUDY ON THE EFFECTS OF AGRICULTURAL LOANS ON FARMING ACTIVITIES IN NIGERIA

ABSTRACT: Since the discovery of crude oil in Nigeria, farming activities has had its fare share of inconsistencies and relegation. Agriculture is a very important sector of Nigeria’s economy. Its role in economic development cannot be over emphasized; umar 2004 opined that between 1960-1976 alone, agriculture accounted for 40 to 60 percent of the national income and about 50 to 80 percent of the labour force is engaged in agricultural production. Agriculture has some major roles to play in Nigeria’s economic development. These are, to increase the supply of food for domestic consumption and export and to create more jobs. This study is basically on the effect of agricultural loan on farming activities in Nigeria a case study of ohaofia local government area of Abia state. The study adopted exploratory study design. Findings from the study revealed that there is a positive, strong and significant relationship of 0.917 between agricultural loan system and agricultural output of Nigeria.