Agricultural Monetary Policy

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1.1 Background of the Study Monetary policy deals with measures taken to regulate the supply of money, the cost and availability of credit as well as the lending and borrowing rates of interest of banks (Ahuja, 2009). Monetary policy is an anti-cyclical policy used to overcome economic depression. The monetary policy is aimed at price stability, stability of exchange rate and overall economic growth. On the other hand, fiscal policy is the use of taxation, public borrowing, and public expenditure of government for purposes of economic stabilization (Jhingan, 2003). Fiscal policy promotes and accelerates the growth of investment; it could also be used to discourage undesirable investments. (Anyanwu, 1998) opined that fiscal system is the…show more content…
Increase in agricultural productivity will contribute to the well-being of the economy as a whole. Aggregate measure of productivity provides a framework for formulating and evaluation of policies in agriculture, adequate knowledge of productivity also enable us to provide a platform to measure economic progress and resources adjustment, it helps in the measurement of income level and production efficiency. The productivity of land, productivity of labour and productivity of capital could be collectively called productivity of resource or resource…show more content…
The task ahead of Nigeria agriculture is multifarious and challenging and success will only be achieved through re-orientation, commitment, dedication, sacrifice, honesty, accountability, adequate funding and motivation. All these become imperative because agriculture is the Nigeria’s most assured engine of growth and development, a reliable key to industrialization. Despite the huge revenue derive from oil, Nigeria is still an Agrarian society with about 70% of the estimated population living in rural area; this shows that the country’s economy rests on agriculture because 70% of rural income is derived from agriculture including forestry, livestock, crop husbandry and fisheries. This also shows that the agricultural sector contributes to the large chunk of the Gross Domestic product (GDP). (CBN 2005) reported that agriculture contributes about 34.62 to 35.84 % to the GDP. While the contribution of agriculture to non-oil sector for the same period was 51.03 to 53.05%. The table below shows the contribution of various sub sectors to the
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