The influence of murabahah finance on the relationship between farm credit and agricultural output in Nigeria: a proposed framework

• Main Authors: Mohammed, Ahmed Ibrahim, Aziz, Ahmad Bashir, Ogunbado, Ahamad Fuosiy
• Format: Article
• Language: English
• Published: 2016
• Subjects: HG Finance; S Agriculture (General)
• Online Access: http://repo.uum.edu.my/21894/1/AJMS%204%2012%202016%2093%2097.pdf; http://repo.uum.edu.my/21894/; http://www.ajms.co.in/sites/ajms2015/index.php/ajms/article/view/2180

The objective of this paper is to explain the influence of Murabahah finance on the relationship between farm credit and agricultural output.This is because, in most of the advanced countries, agricultural output is a backbone of their economy in terms of food supply, industrial, provision of income, employment opportunities.The importance of agricultural output to the socioeconomic well being, specifically the third world countries are paramount.However, it has been shown that there is a decrease in agricultural output in African economies and Nigeria is inclusive.The decrease of agricultural output in Nigeria is resulted to increase in poverty rate, unemployment, fall in individual and government income, collapsed of the industries etc.Some researchers are of the view that poor credit facilities are part of the main problem hindering the growth of the Nigerian agricultural sector.The current paper proposed a research model which, if validated in an empirical source will assist the advancement of agriculture in Nigeria.Hence, the study seeks to propose the use of Partial Least Square Structural Equation Modelling PLS in relation to analysis of the data. This paper may directly or indirectly contribute to the policy makers of Nigerian agricultural cooperative and rural development banks and agricultural environment.It provides a sufficient approach for Murabahah finance as a potential moderator of the Model.