NJOMACS

The study examined the influence of Agricultural Financing on Economic Growth in Tarka LG area of Benue State over the period 2010 to 2020. The objective of the study is to assess the relationship between various forms of agricultural financing on Nigeria’s economic growth with emphasis on Tarka LG. The study uses simple random sampling technique through questionnaires on selected farmers in the local government to assess its impact. All variables were stationary at the first difference, and the co-integration test evidenced a long-run relationship. The study identified, in the long run, that; the agricultural credit guarantee scheme fund shows a positive and significant influence on the gross domestic product in Benue State and mostly in Tarka LG. the study was supported by the Theory of Financial Intermediation as explained by Shaw (1973) and Mickinnon (1973). The commercial bank loan and community –micro-finance bank loan shows a positive and significant influence on the gross domestic product in Benue State within the reference period. In light of the findings, the study concluded that all the variables employed predict Nigeria’s gross domestic product. Furthermore, results show a demand following a role as against supply leading role, revealing that increase in output level in Nigeria and the study area significantly support/promotes agricultural financial instrument. The study recommends that the Federal, state and local governments should motivate commercial banks to provide adequate credit facilities to the Agricultural sector through moderate bank and non-bank lending rates for ease of farming business in Tarka LGA. Proactive campaigns on the availability of credit facilities for farmers to enable them to have access to loans at a single-digit interest rate. This could be achieved through social media, door-to-door vibes, town hall meetings and market squares. Government should create an enabling environment for farmers through the provision of adequate security, pest control measures and seedlings.