MONEY DEPOSIT BANKS AND THE EFFECT OF INTEREST RATE ON AGRIBUSINESS

Abstract

Money Deposit Banks (MDB), the backbone of economic growth provides financial and non financial services. With the contribution of both entrepreneurship 51% and 22% for agriculture, pursuing the workability of this ideal for agribusiness strategization and fast-tracking attainment of the year 2020 economic growth vision, the study thus examines the effect of interest rate on agribusiness to mitigate the challenges of agribusiness growth vision. Data collection was through questionnaire, administered to agribusiness customers of First Bank, Nigeria plc and United Bank for Africa. Data analysis was through frequencies, percentages and T-test analytical techniques. Findings revealed that high interest rate has effect on access to loans by agribusiness investors. The study recommends augmenting agribusiness performance through interest rate reduction, increased access to loans, and inclusion of cooperative bodies in finance policies and programmes. Further studies may increase the number of banks covered and other policies that influence agribusiness.