Effects of agricultural production on external debt management in Nigeria

Abstract

This study evaluated the effects of agricultural production on external debt management in Nigeria's for the period (1970-2003). Secondary data were used for the study. The results of the analysis showed that the coefficient of external debt, agricultural land area under cultivation, external debt service payment and loan maturity period were statistically significant at 10% level, while interest on external debt was statistically significant at 5% level. The coefficient of multiple determination (R²) is 0.99 thus showing that 99% of the variations in external debt were explained by the independent variables. In relation to annual budgetary allocation of the federal government to agriculture, the coefficient of external debt was found to be statistically significant at 5% level. It is concluded that agricultural production impacted positively on Nigeria's external debt from 1970-2003.

International Journal of Agriculture and Rural Development Vol. 7(2) 2006: 92-98