Impact of Agricultural Output on the Nigerian Economy
CHAPTER ONE
OBJECTIVES OF THE STUDY
The purpose of the study is to examine the impact of agricultural output on the growth of the Nigerian economy, specifically. The objectives are:
- To know if there are government policies that support agriculture in Nigeria, and if there are, how effective and efficient.
- To also help in highlighting alternative procedures that can be taken to improve methods of enhancing agricultural output effectively.
- To make policy recommendations based on the findings of the study.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
Nigeria is generously endowed with abundant natural resources including biological and non-biological resources. The resources of the entire world should be developed to the fullest extent possible with available means as a whole can progress only by the efficient and rational use of the natural resources. Resources depend on importance attached to it. Hence, agriculture constitutes one of the most important sectors of the economy. The significance of agriculture resource in bringing about economic growth and sustainable development of a nation cannot be underestimated. Agriculture contributes to the growth of the economy, provides employment opportunities for the teaming population, export revenue earnings and eradicates poverty in the economy. Abayomi (1997) stated that stagnation in agriculture is the principal explanation for poor economic performance, while rising agricultural productivity has been the most important concomitant of successful industrialization. Oji-Okoro (2011) is of the opinion that agriculture resource has been an important sector in the Nigerian economy in the past decades, and is still a major sector despite the oil boom; basically it provides employment opportunities for the teeming population, eradicates poverty and contributes to the growth of the economy. The pervasive influence of agriculture on Nigeria’s economic and social development has also been articulated by Oluwasami (1966). A strong and efficient agricultural sector would enable a country to feed its growing population, generate employment, earn foreign exchange and provide raw materials for industries. The agricultural sector has a multiplier effect on any nation’s socio-economic and industrial fabric because of the multifunctional nature of agriculture (Ogen 2007). Agriculture has been defined as the production of food and livestock and the purposeful tendering of plants and animals, (Ahmed, 1993). He stated further that agriculture is the mainstay of many economies and it is fundamental to the socio-economic development of a nation because it is a major element and factor in national development.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought the impact of agricultural output on Nigerian economy
Sources of data collection
Data were collected from two main sources namely:
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(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information for the study impact of agricultural output on Nigerian economy. 200 staff of the federal ministry of agriculture was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the impact of agricultural output on Nigerian economy.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of agricultural output on Nigerian economy.
Summary
In recent times, there has been increasing pressure to increase investment in agriculture due to the need to attain the MGDs among other things. The importance of agriculture development in ensuring poverty reduction and the economic growth hinges on the fact that 70% of the population is employed in the agriculture sector. The sector’s role of food production, provision of resources for other sectors, creation of viable market and domestic savings gives credence to its importance in economic growth. Also, Nigeria’s natural endowments in agricultural production factors – extensive arable land, water, human resources, and capital highlight the potential of agriculture in economic transformation. In view of the existing controversy among development economists on the role of agriculture as a precondition for industrialization and economic growth, we explored the contributions of agriculture to economic growth. This study provides evidence that agriculture contributes significantly to GDP growth in Nigeria. The trend of contributions observed also highlights the responsive nature, the buffer role and the resilient nature of agriculture; we consider these as nature of agriculture that could be leveraged upon. Finally we find that economic growth does not impact on agriculture growth. This supports the notion that lack of investment in the sector may be responsible for the slow growth experienced in Nigerian agriculture.
Conclusion
On the whole, the agricultural sector contributes significantly to Nigeria’s GDP. The employment base of the Nigeria economy is largely dependent on this sector. The finding showed agricultural sector contributes more than 30 percent to the economy i.e. 34.4 percent. As expected agricultural sector maximally to Nigerian economy more than 50 percent, but the low 34.4 percent is due to the neglect of agriculture when oil was discovered in a commercial quantity in the 1970s. It is well over due for the Nigerian economy to diversify. The negative perception and orientation of the average Nigerian about agriculture sector should be disabused so that these sectors can contribute optimally to GDP.
Recommendations
It is recommended that Government should provide funds to acquire sophisticated farm tools and increase her budgetary allocation to this sector in a consistent manner because of its importance to the national economy, hoping that with proper monitoring of fund, it would contribute more significantly to the economy of the country. An effective utilization of such funds is also advocated and all areas of wastage blocked. The peasant farmers who live in the rural areas and who are the major providers of food for the nation should be adequately catered for by making the rural areas more conducive and habitable by the provision of adequate infrastructural facilities such as good roads, pipe borne water and electricity. The provision of these facilities will no doubt impact positively on the rural farmers’ productivity.
Reference
- Abayomi, O. (1997). “The agricultural sector in Nigeria: The way forward.” CBN Bullion, 21: 14-25.
- Abdullahi, F.A. (2002). Spectrum Memory Guide, Agricultural Science for Senior Secondary Certificate Examination. Ibadan: Spectrum Books Limited.
- Ahmed, Y. O. (1993). “Bank of the North Pamphlets on Agricultural Financing.Various circulars and Policy Guidelines on Agricultural Financing in Bank of the North Limited.” A Paper delivered at Seminars at Bank of the North Human Resources and Development Centre by (Agric. Officer, Bank of the North Limited).
- Akinboyo, O.L. (2008). “Five decades of agricultural policies: What role has statistics played? CBN Bullion, 32: 134 – 165.
- Edoumiekumo, S. G. and Audu, N. P. (2009). “The impact of agriculture and agro-based industries on economic development in nigeria: an econometric assessment”. Journal of research in national development, 7 (1), 1-8.
- Eicher,C & Witt, L. (1964). Agriculture in Economic Development New York: McGraw Hill, London.
- Eicher,C & Witt, L. (1964). Agriculture in economic development. New York: McGraw Hill, London.
