Lending plays a vital role in expediting agricultural modernization and encouraging farmer involvement in the development process. By alleviating financial constraints, lending offers the motivation to embrace new technologies that might otherwise be adopted at a slower pace. This study investigates the effect of bank lending on agricultural activities in Nigeria from 1981 - 2021 using a secondary form of analysis. Different diagnostic tests were carried out, which include descriptive statistics, a pear wise correlation matrix, unit root test, co-integration test, and an auto regressive distributed model (ARDL). The result of the study shows that commercial bank lending to agriculture and interest rates have a positive and statistically significant effect on agricultural output in Nigeria. The study recommends that the government should strengthen financial institutions, which are the credit agencies, in order to ensure efficient disbursement of funds to agricultural and manufacturing sectors and ensure that funds are not misappropriated for other purposes, in order to boost economic growth.