AGRICULTURAL OUTPUT AND ECONOMIC DEVELOPMENT IN NIGERIA ABSTRACT This study examined agricultural output and economic development in Nigeria. In light of the empirical review and other discussions, a number of questions arose as to whether there is relationship between agricultural output and economic development in Nigeria. Using the Ordinary Least Square (OLS) regression technique with the aid of computer software, the empirical findings revealed among other things that there is a relationship between agricultural output and economic development in Nigeria. We recommended that, government should evolve policies toward diversifying the economy and encouraged the campaign for improvements in the non-oil sectors of the economy especially agricultural. TABLE OF CONTENTS CHAPTER ONE: INTRODUCTION Background to the Study Statement of the Research Problem Objective of the Study Research Hypotheses Scope of the Study Significance of the Study Methodology of the Study Limitation of the Study References CHAPTER TWO: LITERATURE REVIEW Introduction Agriculture, Economic Development and Growth in Nigeria 11 Agricultural Sector Policies and Programmes Contributions of Agriculture to Economic Development in Nigeria Theoretical and Empirical Evidence Agricultural and Industrial Production: Conceptual Issues Role of Agricultural and Industrial Production in Economic Development Agricultural and Industrial Production in Nigeria Financing Agriculture and Industry in Nigeria References CHAPTER THREE: RESEARCH METHOD Introduction The Research Design Sources of Data Collection The Population of the Study Model Specification Method of Data Analysis CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 4.1 Introduction 4.2 Presentation and Analysis of Results Test of Hypotheses CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS Introduction Summary of the Finding Recommendations Conclusion Bibliography Appendix CHAPTER ONE INTRODUCTION BACKGROUND TO THE STUDY Agriculture sector is the key sector in the Nigerian economy. This sector is the ‘brain box’ of the Nigerian economy. Agricultural sector is vital source of raw materials needed for the agro allied industries, especially Beverages Company, food and exports. It was the cornerstone of the economy in the 1960s and early 1970s (Umaru and Zubairu, 2012). Nigeria was heavily dependent on agriculture, which was the sector accounting for more than 40 percent of the Pre-1973 GDP. It was the major source of funds for implementing the first development plan, 1962-1968. Within a decade up to 1983 however, agricultural output in Nigeria declined to 1.9 percent and export fell to 7.9 percent. Agricultural imports as a share of the total imports rose from 3 percent in the late 1960s to 7 percent in the early 1980s. Nigeria’s unfavorable agricultural development resulted from the loss of compositeness among farm exports as the real values of the Nigerian Naira appreciated substantially from 1970 to 1972 and from 1982 to 1983. According to the Central Bank of Nigeria report, “export-oriented agriculture declined from 42 per cent of the total export in 1970 to less than 3 per cent in 1985.” The sector has suffered from years of mismanagement, and inconsistency in the government policies and the era of huge oil revenues has also contributed in the neglect of the agricultural sector. Major agricultural products are Cassava, corn, millet, cocoa, palm oil, groundnuts, rice, rubber, sorghum, yam, and livestock production. The sector still accounts for over 26.8percent of GDP and two thirds of employments. Nigerian is no longer a major exporter of cocoa, cotton, groundnuts, rubber and palm oil (Evbuomvom, G. O, 2003). The continuous decline in the agricultural sector despite huge investments in the sector, which among others include the establishment of River basins and Rural Development Authorities, the Agricultural Development programmes, ADP, (funded jointly by the World Bank and the federating Units in Nigeria), and more than 20 Agricultural Research Institutes. Over the years, especially in the early 1980s and late 1980s, modest programmes were evolved: the Obasango’s Operation Feed the Nation (OFN), Shagari’s Green revolution, and most recently, Obasango’s agricultural programmes in 2004-2005, prominent was the cassava projects and much attention given to the sector. During the 2007, President Yar Adua’s 7 point agenda also places emphasis on Food security. Despite all these, agriculture has failed to keep pace with Nigeria’s rapid population growth. Nigeria once exporter of food, now relies on imports to sustain its growing population. STATEMENT OF THE RESEARCH PROBLEM Agricultural sector is seen as an engine that contributes to the growth of the overall economy of Nigeria, despite these efforts the sector is still characterized with low yields, low level of inputs and limited areas under cultivation due to government dependence on mono-cultural economy based on oil. Economic history provides us with ample evidence that agricultural revolution is a fundamental pre-condition for economic growth, especially in developing countries (Woolf and Jones, 1969; Oluwasanmi, 1966; Eicher and Witt, 1964). Ukeji (2003) submits that in the 1960’s, agriculture contributed up to 64% to the total GDP but gradually declined in the 70’s to 48% and it continues in 1980 to 20% and 19% in 1985, this was as a result of oil glut of the 1980’s. Historically, the root of the crises in the Nigerian economy lies in the neglect of the agricultural sector by the Federal Government towards developing dependence on a mono-cultural economy based on oil. Against this backdrop, the following research questions are raised: What is the relationship between agricultural output and domestic savings? What is the relationship between agricultural output and foreign direct investment on agricultural? What is the relationship between agricultural output and government expenditure on agricultural? OBJECTIVE OF THE STUDY The broad objective of this study if to examine agricultural output and per capita incomes in Nigeria. The specific objectives are: To determine the relationship between agricultural output and per capita incomes. To examine the relationship between agricultural output and government expenditure on agriculture. RESEARCH HYPOTHESES The hypothesis for this study is; Hypothesis I H0: There is no relationship between agricultural output and per capita incomes. H1: There is a relationship between agricultural output and per capita incomes. Hypothesis II H0: There is no relationship between agricultural output and government expenditure on agriculture. H1: There is a relationship between agricultural output and government expenditure on agriculture. SCOPE OF THE STUDY It is well known fact around the globe that, there is no limitation to knowledge. As a result of the above fact, the scope of this research will be limited to the Nigerian economy vis-à-vis agricultural output and per capital incomes. Temporary or in term of time series, a period of 41 years is used i.e. 1980 to 2011 using some macroeconomic variables as means of assessing agricultural output and per capital incomes. Geographically, the study will be conducted in Benin City, Edo State. SIGNIFICANCE OF THE STUDY There are several compelling reasons for undertaking this study. It will update existing body of knowledge by going a step forward in filling many of the obvious gaps in the controversy of agricultural output and per capita incomes of developing and emerging economies (Nigeria inclusive). It is therefore expected that the study findings will be of immense benefit to policy makers, government regulatory agencies, etc. it will also prove very useful to researchers as well as members of the academia. Besides, the findings of this study will lay the foundation for other academia and research students (both home and abroad) to know what evidence exist in emerging economies concerning the agricultural output and per capita incomes. METHODOLOGY OF THE STUDY The study will involve the use of secondary data, the data will be obtained from various issues of the CBN statistic bulletins and other sources of data relevant to the study. The data obtained will be analyzed using the regression analysis from which conclusion will be drawn on the basic of the estimated model. LIMITATION OF THE STUDY In the course of carryout this study, the researcher encountered some constraints such as finance and time. Financial Constraints: Finance is largely needed to tour wider regions or location just to gather data for processing. But this was not adequately available to sufficiently meet the purpose of this study. Time Constraints: This study coincided with the first and second semester academic demands which made it enormously tasking. More time would have been devoted to critically evaluate the impact of the capital market on Nigerian economy using some basic market indicators. REFERENCES Umaru, A. and Zubairu, A. A. (2012) An Empirical Analysis of the Contribution of Agriculture and Petroleum Sector to the Growth and Development of the Nigerian Economy from 1960-2010, International J. Soc. Sci. & Education, 2(4): 758 – 769. Evbuomvom, G.O et al (2003), Agricultural Development: Issues of sustainability, CBN Publication, Abuja Nigeria.pp743-745.
AGRICULTURAL OUTPUT AND ECONOMIC DEVELOPMENT IN NIGERIA 1980 - 2013 AGRICULTURAL OUTPUT AND ECONOMIC DEVELOPMENT IN NIGERIA 1980 to 2013 ABSTRACT The study primarily aimed at examining the impact of Agricultural output on the development of the Nigerian economy. The OLS method of estimation was employed to find out if there exist a significant and positive... More
COMMERCIAL BANK CREDIT AND AGRICULTURAL OUTPUT IN NIGERIA: (1982-2007)COMMERCIAL BANK CREDIT AND AGRICULTURAL OUTPUT IN NIGERIA: (1982-2007) ABSTRACT This research examined the impact of the commercial bank credit for agricultural production in Nigeria using macroeconomic variables (bank credit to commercial and agricultural output). The overall objective of the... More