Effect of CBN Policy Measures Prior to and Amidst of Covid-19 Pandemic Era on Cottage Firms and Farmers in Nigeria

Abstract

After the oil sector crises of 1970s, the Nigerian government through its regulatory institutions and policies has been unsuccessfully trying to revive the agricultural sector in. The outbreak of Covid-19 pandemic and its effect reignited the interest of the government and CBN towards restructuring the economy through enhancement of household industries and agricultural sector. This study therefore sought to examine the effects of CBN policy measures prior to and amidst of Covid-19 pandemic on cottage firms and farmers in Nigeria. The ex-post facto research design was employed. Annual time series covering 1995 to 2018 obtained from CBN Statistical Bulletin and African Statistical Yearbook. Primary data are equally employed in the course of the study to cover Covid-19 pandemic era considering the fact that 2020 CBN statistical bulletin is not yet out. Statistical tools of Unit Root Test, Engle-Granger Co-integration Test and Error Correction Model Test were employed in analyzing the collected data. Thus, the result of prob.(F-statistics) of 0.08975 shows that the CBN policies has no significant effect on the growth of cottage industries and famers in Nigeria within the period of the study. The researcher amongst others recommends promotion and encouragement of financial sector deepening, establishments of cottage firms scheme/board, strengthening the capital base of the cottage firms and farmers, eliminate the cost of accessing Covid-19 credit facility and the technicalities involved, establishing functional Agricultural Institutions of learning.