GOVERNMENT CREDIT, BANKS' CREDIT AND AGRIBUSINESS SECTOR PERFORMANCE UNDER CONSOLIDATON POLICY IN NIGERIAN BANKING INSTITUTIONS (1995-2014): A TREND ANALYSIS

Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 17 ISSUE 1
Written by Joseph Chimere ONWUMERE, Chinonso Henry ENE, Gideon Chukwunyere NNAMERENWA

Consolidation policy in the Nigerian banking institution is a reform strategy recently adopted by CBN to reposition the banking sector. Consolidation gave birth to merger and acquisition of banks. These were done to achieve improved financial efficiency, forestall operational hardships and expansion bottlenecks. It is against this backdrop that the paper made a trend analysis in government credit to agribusiness, banks' credit to agribusiness, agribusiness output and number of agribusiness enterprises that accessed the credit through Agricultural Credit Guaranteed Scheme Fund (ACGSF). Data were collected from the published annual reports and accounts of the CBN and were subsequently analyzed applying trend analyses such as exponential trend analysis and quadratic trend analysis through Eview (Econometrical view) packages for management sciences. It was found that government credit allocation, value of banks' credit allocation to agribusiness, agribusiness output and number of agribusinesses that accessed the credit was higher during the post- merger and acquisitions consolidation policy era than the pre-mergers and acquisitions consolidation policy era. The study concluded that post-merger and acquisition consolidation policy in the Nigerian banking institutions was higher than the pre-merger and acquisition consolidation policy era. The study recommends that banks should be more aggressive in their profit drive for improved financial position to reap the benefit of post- merger and acquisition consolidation bid.

[Read full article] [Citation]

ONWUMERE J.C., ENE C.H., NNAMERENWA G.C. 2017, GOVERNMENT CREDIT, BANKS' CREDIT AND AGRIBUSINESS SECTOR PERFORMANCE UNDER CONSOLIDATON POLICY IN NIGERIAN BANKING INSTITUTIONS (1995-2014): A TREND ANALYSIS. Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 17 ISSUE 1, PRINT ISSN 2284-7995, 307-306.


The publisher is not responsible for the opinions published in the Volume. They represent the authors’ point of view.
Copyright 2012. To be cited: Scientific Papers. Series “Management, Economic Engineering in Agriculture and Rural Development“
Powered by INTEL TECH DEVELOPMENT.