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Agriculture In Nigeria Essay

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CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Agriculture remains a crucial sector in the Nigerian economy, being a major source of raw materials, food and foreign exchange; employment of over 70% of Nigerian labour force, and serving as a potential vehicle for diversifying the Nigerian economy (Oluyemisi and Akeem, 2011). Before and early independence, agricultural production was the major backbone of Nigeria economy, whereby exportation of cocoa and other potential farm produce were largely cultivated in Nigeria Lewis and Rostow, (2008) argue that agriculture has a very important role in the economic development process of a nation, stressing that improving agricultural productivity is the basis for successful development strategy. …show more content…

It is the largest contributor to Gross Domestic Production (GDP) (average 38% in the last 8 years) with crops accounting for 80%, forestry 3% and fishery 4%. It provides employment for about 65% of the adult labor force and the food and fiber needs of a large and increasing population (Oji-Okoro, 2011). The agro-industrial enterprises depend on the sector for raw materials whilst 88% of the non-oil exports earning come from the sector. The sector contributes a great deal to the development of the economy in various ways (Oji-Okoro, …show more content…

A Cobb Douglas Growth Model was specified that included commercial credits to agriculture, consumer price index, annual average rainfall, population growth rate, food importation and GDP growth rate. The study performed comprehensive analysis of data and estimated the Vector Error Correction model. Their results showed that federal government capital expenditure was found to be positively related to agricultural output. Akpan (1999) uses time series data of 33 years, and the OLS method of regression to analyze the contribution of government expenditures to the growth process in Nigeria. He concluded that capital expenditure on agriculture though not statistically significant but influence positively on

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