RELATIVE IMPACT OF FINANCIAL SECTOR REFORMS ON AGRICULTURAL AND MANUFACTURING SECTOR GROWTH IN NIGERIA
The study investigates relative impact of financial sector reforms on agricultural and manufacturing sector growth in Nigeria. To guide the study, Ordinary Least Square technique was adopted and Eviews 8.0 econometric software was utilized for the analysis. A time series quarterly data sourced from Central Bank of Nigeria Statistical Bulletin 2009 and 2013 and it covered the period 1970-2013 was used for the analysis. After carrying out necessary pre- and post diagnostic test, the result shows that gross fixed capital formation and credit to private sector ratio to GDP has positive but insignificant relationship with agricultural and manufacturing sector output. While real interest rate, manufacturing capacity utilization and financial sector reform dummy were positive and significant, interest rate spread, real exchange, average annual rainfall and money supply ratio to GDP displayed negative relationship with agricultural and manufacturing sector output. Upon comparison of impact of key financial indictors on agricultural and manufacturing sector output, the result revealed that impact of real interest rate and financial sector profitability index (SINR) in the pre- and post-financial sector reform were significant in each sector. In contrast, while impact of real exchange rate does not significantly influence agricultural sector output, it subsequently became significant in the model for manufacturing sector output. The study however concludes that domestic investment on infrastructure and credit facility to the sectors was sub-optimal. Secondly, participants in the sectors were made worse-off by the reform. Extensive review of existing policies, provision of incentives, accessible and affordable funding was recommended by the study.