An Empirical Analysis Of The Effect Of Agricultural Sector On Nigeria’s Economy (1970-2017)

Type Project Topics
Faculty Administration
Course Economics
Price ₦3,000
Key Features:
- No of Chapter: 58
- No of Chapters: 5
- Tables
- Well Detailed
This research work an empirical analysis of the effect of agricultural sector on Nigeria’s economy 1970-2017. The study used the Ordinary Least Square (OLS) estimate. The multiple linear regression estimate was established among the variables used for the study and analysis were carried out as well. The study reveals that agriculture sector performance captured by changes in Agricultural Crop Production output (ACP), and Agricultural poultry Production output (APP) has positive effect on Nigeria economy during the period study. Study. The results of ECM test revealed a positive long-run relationship between the activities of agriculture sector and Nigeria economy. The study recommended that the government should urgently engaged proactive measure to boost agriculture, to place more emphasis and interest on self-employment in agriculture. They should strive to provide suitable rural infrastructures and propose and implement agricultural friendly government policies. The government should encourage the financial sector to set aside funds for agricultural financing as well as encourage flexibility in accessing loans to enhancing agricultural production.
Table of Content:
Table of Contents
Title page i
Declaration page ii
Certification page iii
Dedication page iv
Acknowledgement v
Abstract vi
Table of Contents vii
1.1 Background to the Study 1
1.2 Statement of the Problem 4
1.3 Research Questions 6
1.4 Objectives of the Study 6
1.5 Research Hypothesis 7
1.6 Significant of the Study 7
1.7 Scope and Limitations of the Study 8
1.8 Organization of the Study 9
2.1 Conceptual Framework 10
2.2 Theoretical Literature 24
2.3 Empirical Literature 26
2.4 Theoretical Framework 28
3.1 Theoretical and Analytical Framework 32
3.2 Method and Sources of Data 32
3.3 Model Specification 33
3.4 Evaluation Techniques 34
3.5 Apriori Expectation 34
4.1 Data Presentation 35
4.2 Interpretation of Result 37
4.3 Discussion of Results 38
5.1 Summary of Findings 41
5.2 Conclusion 41
5.3 Recommendation 42
References 44
Agricultural sector in Nigeria has from time to time undergone different phases since her independence in 1960. The agricultural sector in the 1960’s was contributing 85% of Nigeria foreign exchange earnings, 90% employment generation, and 80%to gross domestic product (CBN, 2010). However, the sector since the discovery of oil has witnessed lots of neglect from the various successive governments. At present, agriculture account for only 31 percent if now below of the real sector, while crude oil accounts for about 55 percent and above.
Although agriculture no longer server as the leading contributor to the Nigeria’s gross national product and the leading foreign exchange earner due to phenomenal growth in petroleum sector of the economy as observed; still it is the dominant economic activity in terms of employment and linkages with the rest of the economy. While accounting for one-third of the GDP, it remains the leading employment sector of the vast majority of the Nigerian population as it employs two-third of the labour force ( Ekpo and Umoh, 2012).
The principal constraint to the growth of the agricultural sector is the fact that the structure and method of production have remained the same since independence for more than five decades.
Nigeria, which spans an area of 923,639 kilometers square, is bordered by the Gulf of Guinea, Cameroon, Benin, Niger and Chad. The topography ranges from mangrove swampland along the coast to tropical rain forest and savannah to the north. Nigeria is highly endowed with abundant natural resources, with its reserves of human and natural resources; Nigeria has the potential to build a prosperous economy and provide for the basic needs of the population if her resources is well managed and this could support a vibrant agricultural sector capable of ensuring the supply of raw materials for the industrial sector as well as providing gainful employment for the teeming population.
Nigeria’s rich human and material resource endowments gives her the potential to become Africa’s largest economy, and a major player in the global economy compared with other African an Asian countries, especially Indonesia, which is comparable to Nigeria in many aspect (Noko, 2014).
Economic development in Nigeria has however been disappointing with GDP of about 45billion, 32.953 billion and 55.5billion dollars in 2001, 2002 and 2003 respectively and per capita income of about $300 a year (CBN, 2010).
Despite all these seemingly endowment, Nigeria has become one of the poorest countries in the world. The role of agriculture in economic development of most countries can hardly been seen clearly.
Long before now the relationship between the banking industry and the agricultural sector in Nigeria has been a contentious issue. if one were to take a census of all the pronouncements on the matter by various governments since independence and classify them into those praising the effort of the banking industry and those castigating them as granting credit to agriculture, we may likely notice that the ratio of those in favour of the later will be in the ratio of four to one. This could further be reflected in the legislation of governments and the directives of quasi government institution like the CBN on the issue.
The setting up a wholly government owned bank in name Nigeria agriculture, cooperative and rural development bank (NACRDB) with an aim of solely leading to endeavors on short, medium and long-term basis is predicated on the philosophy that the main stream banking industry does not adequately cater for the urgent need of credit required for rapid transformation of the agricultural sector of the economy.
The Transformation Agenda of the formal president Jonathan administration identified seven sector as the main growth drivers during the transformation period,2011 -2015, via agricultural, water resources, solid minerals ,manufacturing ,oil and gas, trade and commerce, as well as culture and tourism. The decision was prompted by the fact that the performance in these sectors has been constrain by several challenges including low productivity, low level of private sector investment, non-competitiveness, inadequate funding, shortage of skilled manpower, low investment in research and development, poor development of valve chain and low value addition, poor regulatory environment, poor quality of goods and services, and poor state of physical infrastructure, policy instability, and dis-continuity, low level of technology, paucity and poor flow of information and high cost of doing business (FGN 2011). Government thus, assume a base line gross domestic product (GDP) growth rate of 11.7% per annum within the period, which will translate to real and nominal GDP of about N 428.6 billion and N73.2 trillion, respectively at the end of the program period.
In recent decades, the potential contribution of agriculture as one of the drivers of economic growth has been a subject of much controversy among development economists. While some contend that agricultural development is a pre-condition for industrialization, others strongly disagree and argue from a different path. However, the role of agriculture sector in bringing about economic growth and development of a nation cannot be underestimated. Okolo (2004) described agricultural sector as the most important sector of Nigeria’s economy which holds a lot of potentials for future economic development of the nation as it has done in the past. The agricultural sector is arguably the most important sector of the economy.
Abayomi (2001) once averred that the stagnation in agriculture is the principal explanation for poor economic performance, while rising agricultural productivity has been the most important concomitant of successful industrialization. Thus, it is not an over statement to accept that the growth and development of Nigeria depend to a large extent on the development of the agricultural sector.
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