Inter-relationships among interest rates, savings and investment in Nigeria: An ex post analysis for 1975-1992 period with projections for 2010

This paper simulated the inter-relationships among interest rates, savings and investment in Nigeria between 1993 and 2010, using historical data on Nigeria spanning a period of 18 years (i.e. 1975-1992). By assuming diverse theoretical underpinnings and approaches, this study examined, in particular, what the connections and the directions of causality imply for interest rates policy, and savings mobilization and investments in Nigeria. Preliminary analysis carried out based on the historical data confirmed that the real interest rates had a negative effect on the investment rate in Nigeria between 1975 and 1992. Also, a positive association was found between the investment rates and the savings rates in Nigeria over the review period. This latter finding, thus suggest that persistent, low or negative real interest rates will discourage or fail to stimulate the savings rates, and may stifle qualitative investment in Nigeria. Ex ante forecasts beyond the historical data period further suggested that a marked decrease in the real lending rate would not result automatically into increased domestic investment. Similarly, a sizeable decline in the real deposit rate will not prevent a marked growth in total savings. Nonetheless, the gross domestic production should posit a 4.2percent growth rate in real terms between 1993 and 2010

Credit facilities in Agriculture with special emphasis on livestock

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Mixed farming in a grazing reserve in Northern Nigeria

Nigeria's main pastoral development strategy is the settlement of pastoralists in grazing reserves. The goal of the strategy is to turn such nomadic pastoralists into mixed farmers who will take up crop farming to supplement livestock farming. Using the Bobi Grazing Reserve, Niger State, Nigeria as case study, the attainment of this goal is evaluated by the use of structured questionnaire, interviews, field surveys, project site visitation and personal observation. From the results, ninety-five percent (95%) of settled pastoralists willingly adopted mixed farming as an economic survival strategy. This was in response to reduced herd size on settlement, in the face of declining-land available for nomadism among other reasons. Average herd size of 41.5 cattle, 14.0 goats and 7.5 sheep was insufficient to supply household income need hence settlers took up crop farming to supplement income. Annual income from livestock farming (N62, 182. 00) was 78.1% of total income per settler, while crop farming supplied 21.9% (N17, 400) of the income. Farmers farmed a mean 3.97 hectare out the maximum 4.00 hectares allowed in the reserve. Ninety-five percent of settlers expressed willingness to expand farm size in response to domestic needs. Thus hitherto nomadic pastoralists became mixed farmers on settling in the reserve. Mixed farming therefore appears to be an achievable goal in Nigeria's pastoral development strategy. Key words: Grazing Reserves, Mixed Farming, Pastoral Developmen

Savings And Investment Patterns Of Food Crops Farm-Households In The Ijebu Division Of Ogun State, Nigeria

This paper analysed the savings-investment patterns of farm-households in the Ijebu Division of Ogun State, Nigeria. Specifically, the study analysed the socio-economic characteristics, and the fund allocation and savings-investment patterns of farm-households in the Ijebu Division. Cross-sectional data were collected from 100 farm-households in the study area. The data were analysed using diverse econometric methods. Results indicated that savings at home was a very common practice among the farm-households that constituted the study sample. The level of savings was influenced positively by the size of the working members of the farm-household. Income and interest rates on cycle savings also affected, albeit positively, household savings; although only one-tenth of any additional income is allotted to meeting the consumption needs of the farm-household. Household investment on the farm was also, influenced positively by the level of the household income. The interest elasticity of savings was 4.24 while that with respect to investment was found to be –7.26. Moreover, policy simulations carried out in the study indicated wide scope for mobilizing savings and for improving investment outlay at the farm-household level. The basic requirements, however, are well-designed income and interest rates policies, and aggressive savings mobilization and investment promotion at the farm-household level. Keywords: savings and investment patterns, food cropsJournal of Agriculture and Social Research Vol. 7 (1) 2007: pp. 11-2