ABSTRACT

 The project work "empirical study of commercial hank loan on agricultural sector in Nigeria" within the period of1980-2017 investigated the impact ofcommercial bank loan on agricultural outputs in Nigerian economy, it examined the impact ofgovernment expenditure on agricultural sector outputs in Nigeria and also the impact ofinterest rate on agricultural sector outputs in Nigeria. The study employed Ordinary Least Square Regression Technique (OLS) and unit root testing in the research. Result reveals that government spending has a positive effect on the agricultural sector output in Nigeria, it also revealed that the results ofthe commercial banks credit and agricultural sector output on the economy ofNigeria does conform to the apriori expectation and also that interest rate has no significant effect on the agricultural output sector in Nigeria. Based on the findings, the following recommendations were made: There should be properfinding ofthe agricultural credit guarantee scheme in order to grantfarmers access to loans and encourage banks to lend more tofarmers. There should be more government spending on the agricultural sector as such spending provides the needed fund for the farmers for increased agricultural production, interest rate should be lowered to enable farmers to borrow morefindsfor agriculturalpurposes.