Application of Data Mining on Agricultural Credit Guarantee Scheme Fund and Its Impacts on Natural Rubber Production in Nigeria

This study was carried out to examine the impact of Agricultural Credit Guarantee Scheme Fund on Natural Rubber Production in Nigeria using time series data on natural production in Nigeria, number of loans and values of loans guaranteed by Agricultural Credit Guarantee Scheme Fund from 1981 to 2018. Result of Augmented Dickey Fuller indicated that natural rubber output and number of loans applied were stationary at first difference at 5% level of significance while total credit guaranteed became stationary at second differencing which was also significant at 5%. The Johansen co-integration test result also indicated that there was co-integrating relationship between natural rubber production in Nigeria and Agricultural credit guarantee scheme fund over the period under study. The speed of adjustment of the model from short – run to long – run equilibrium using ECM was -0.64855 and revealed that deviation in natural rubber output increase in Nigeria from the long- run equilibrium is corrected by 64.86% in the current period. Amount of credit guaranteed had significant relationship with natural rubber production. It is suggested that the value of credit guaranteed to rubber farmers should be increased so as to enable natural rubber farmers expand their production to enhance foreign exchange earnings in the Agricultural transformation plan of Nigeria.