ABSTRACT

The importance of agricultural surplus for the structural transformation accompany mg economic growth andpoverty reduction is often stressed by development economists. This lead to the question: Does agriculture financing matters in the growth process and in reducing poverty in a country? To this end, the need to investigate the impact ofagriculture financing on poverty reduction and economic growth appears more imperative for Nigeria. This paper employed secondary datafrom 1981 to 2018 and some econometric techniques such as Ordinary Least Square (OLS); Augmented Dickey-Fuller (ADF) unit root test: Granger Causality test. The results of the various models used suggest that there is unidirectional causality between economic growth and agriculture financing: and there is unidirectional causality between economic growth and agricultural productivity, it also showed a unidirectional causal relationship between agriculturalfinancing andpoverty reduction, and also a unidirectional causality between agricultural productivity and poverty reduction. The result ofthe. OLS estimation shows that there is a significant relationship between agricultural financing and economic growth, agricultural productivity and economic growth, poverty reduction andeconomic growth. Itfurthersuggests that productivity ofinvestment will be more appropriatelyfinancedwithforeign directprivate loan, share capital,foreign direct investment and development stocks. It is recommended that maintenance of credible macroeconomic policies that ispro-investment; and debt-equity swap option are necessaryfor an agriculturalled economic growth.