International Journal of Business and Management Review (IJBMR)

EA Journals

IMPACT OF LIQUIDITY MANAGEMENT ON THE PERFORMANCE OF AGRIBUSINESS SECTOR IN NIGERIA (1978-2013)

Abstract

The performance of the agro-industrial sector in terms of output and exports is of great importance in Nigeria, and the influence of liquidity management is of essence in assessing its growth and development. Therefor this research work is on determining the impact of liquidity management on the performance of agribusiness sector Nigeria (1978-2013). The data used was sourced from the central bank of Nigeria (CBN) statistical bulletin, and were analysed using multiple regression analysis statistical technique. The findings of the study revealed thatliquidity management had a strong bearing on the performance level in the agro-industrial sector in Nigeria.Liquidity management, value of ACGSF loans to agribusiness subsector, government capital expenditure on agriculture, value food import, and rainfall significantly determined agribusiness output in Nigeria within the period under review and based on the specified model. Liquidity management, aggregate producer’s price, agribusiness output and aggregate world price of commodity index significantly determined quantity of agribusiness export in Nigeria within the period of study and based on the specified model.It is recommended that the government should display a high sense of commitmentin its liquidity management to bring about a realistic performance in the agribusiness sector.Farm support policies such as subsidization of agribusiness inputs to produce the desired multiplier effects on agribusiness and food production and the provision of yield increasing technologies are expedient in ensuring that the agricultural sector received the desired boosts and acceleration that it required to meet the food demand of the populace and are hence advocated. Output price incentive scheme is recommended but should not be designed as a welfare scheme rather emphasis of the scheme should be the attainment of the objectives of increasing agribusiness output and export in Nigeria within the possible short period of time.

Keywords: Agribusiness Sector, Liquidity Management, Nigeria, Performance

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This work by European American Journals is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 4.0 Unported License

 

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Email ID: editor.ijbmr@ea-journals.org
Impact Factor: 8.72
Print ISSN: 2052-6393
Online ISSN: 2052-6407
DOI: https://doi.org/10.37745/ijbmr.2013

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