Developments in the agricultural sector during the first quarter of 1990

Abstract

The weather which was dry and hot, with scanty rainfall during the quarter was not very conducive to farming activities. Average total monthly rainfall which was 174.1 mm during the quarter was far below its level of 441.6mm recorded in the corresponding quarter of 1989. However, the rainfall was evenly distributed unlike in the corresponding period of 1989, during which it was skewed mainly to the month of March and the coastal part of the country. At least, seven states recorded their first rain in January, as against none in the corresponding month of 1989; while twelve states had rain in February, 1990, as against two in 1989. Overall, the expectations and forecasts for 1989/90 crops output during the quarter were low. Livestock production was expected to grow marginally amidst rising cost of feed. However, recovery in the fish subsector could be sustained as more inputs were expected given the high priority accorded agriculture in the 1990 budget. Total loans and advances to agriculture by commercial and merchant banks during the quarter were N36, 460.0 andN874.7 million, respectively. For the commercial banks, this represented a growth of 7.7 per cent from its level in the preceding quarter and 10.0 per cent over its level in the corresponding quarter of 1989. There was a rapid growth in credit granted under the Agricultural Credit Guarantee Scheme (ACGS) by commercial and merchant banks with a total of 2,491 loans amounting to Nl0.1 million granted under ACGS during the quarter.