Food production, distribution, exchange, consumption are important parts of every countrys economic system. The role of agriculture in economic development and. Thus, this study seek to examine the relationship between agricultural credit and economic growth in nigeria between 1986 and 2014 using stationary, cointegration test and modified ordinary least. National development plans in nigeria we have had series of development plans in. Agriculture is the backbone of nigerias socioeconomic development. Exports and government revenues are driven largely by oil, while most nigerians work in agriculture. At this point in nigerias development, the best approach is to focus on the agricultural sector. This research paper empirically explored the agriculture, economic growth and development nexus in nigeria. The contribution of agricultural sector on economic growth of nigeria. The vision 202020 program this country is currently pursuing is a major step to achieve this goal. This is approved for students in accountancy, business, computer science, economics, engineering, arts. Contribution of agriculture to economic development. During the period when agriculture was the dominant economic. Agricultural sector performance and nigerias economic growth.
By focusing on agricultural development, nigeria can speed up its economic growth in the coming decade 3. Nigeria has many opportunities to transform its economy, particularly in agroprocessing. The fact that economic growth is necessary for sustained development, coupled with data limitation, informs our focus on investigating the contributions of agriculture to economic growth, as measured by. Agriculture, economic growth, gdp, nigeria, growth accounting, granger causality tests. The agriculture sector is the backbone of an economy which provides the basic. Contribution of agriculture to economic growth in nigeria aaawe. Despite the growth of the nigerian economy, poverty is still on the increase and this calls for a shift from monolithic oilbased economy to a more plural one with. The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. Nigeria, its actual contribution appears to be much short of overall potential. The challenges of agriculture and rural development in. In 1921, a unified department of agriculture was formed in.
Role of agriculture in the economic development of a country. While in the now developed countries it appears that the major stimulus to early growth was. This is among the reason for this post on the importance of agriculture in. At a 2day nigeria meeting organized by the overseas development institute, london, 1617 june 2004 contact. International journal of development and economic sustainability vol. Agricultural development intervention programmes in. Contribution of agriculture to economic growth in nigeria1. Before the prominence of petroleum industry, nigerian economy was dependent on agriculture. History of agriculture in nigeria agriculture nigeria.
I mpact of agricultural sector on nigeria economic growth and development 19812017. In this view, agriculture s role in economic development is to supply cheap food and low wage labor to the modern sector. The challenges of agriculture and rural development in africa. The impact of agricultural output on economic development. But insecurity could deter foreign investors, shrivel the domestic economy, and ultimately dampen prospects for economic growth. Another factor contribution of agriculture towards economic development is through the release of labour by the agricultural sector for the nonagricultural sectors. Similarly, 5,6 and 7 maintained that agriculture as the most critical sector of the nigerias economy shield several benefits which is capable of facilitating economic growth and development. Economic history is replete with ample evidence that agricultural revolution is a fundamental precondition for economic growth. Agriculture is the bedrock of economic growth, development and. Nigeria has enjoyed relatively strong economic development over the past seven years but poverty is still a major concern. In 1970 she presented the first comprehensive, empirically based analysis of womens participation in agriculture and linked the evolution of farming systems to population pressures, technological change in agriculture, and the participation of women in the labor force.
Constraints to agricultural development in nigeria ojeka godfrey ofana1, effiong charles efefiom2 and eko eko omini1 1department of economics, federal university lafia, nasarawa state, nigeria 2department of economics, university of calabar, nigeria abstract. Nigeria is a country that is highly endowed with material and human resources. Government of nigeria has taken a giant stride to treat agriculture as serious political, economic and investment issue in nigeria. A okuneye 2010, some major problems confronting nigeria agriculture are poor infrastructural facilities such as poor feeder roads and road network, storage facilities, rural electrification, etc.
This gives some evidence on the importance of agriculture in economic development. Although several studies have outlined the theoretical relationship between agriculture and economic growth, disagreements still persist awokuse, 2009. Since our inception, the agricultural development team has recognized nigeria as an important priority geography given its size and agricultural potential. West africa subregion, is embarking on a socioeconomic development projects in nigeria and burkina faso. Even though nigeria has a high poverty rate, it still has a higher gdp in comparison to other countries of. Economic diversification for sustainable development in. The objective of the study is to examine the place of agriculture in the economic growth and development of nigeria. The role of agriculture in nigerias economic development. In 1910, moor plantation, ibadan became the headquarters of the department of agriculture in southern nigeria, and a department of agriculture was established in the north in 1912.
As a matter of fact, if the process of economic development is to be initiated and made selfsustaining, it must begin for agricultural sector. Get free research paper on impact of agricultural development on economic growth of nigeriaproject topics and materials in nigeria. Currently, nigeria has 75 percent of its land suitable for agriculture, but only 40% is. Background of the study agriculture is concerned with the husbandry of crops and animals for food and other purposes. Economic development is constrained by inadequate infrastructure, electricity, incentives, and policies that promote. The role of agriculture in the economic development of nigeria the traditional approach to the role of agriculture in economic development is formulated in terms of the contributions the agricultural sector can make or the functions it can perform during the process of economic development. Early classical theory viewed economic development as a growth process requiring the systematic reallocation of factors of production from a primary sector characterized by low productivity, traditional. Agricultural development, a subset of economic development, implies a sustained increase in the level of production and productivity over a reasonable length of time and the subsequent improved wellbeing of farmers as reflected in their higher per capita income and standard of living. The variance decomposition analysis revealed that the greater contribution to shocks. They used annual time series data and employed augmented dickeyfuller unit root test and vector autoregressive model, the variables used were agricultural input and public agriculture expenditure to explain economic development provide by per capita income. The economic situation of nigeria nigeria is a monoeconomic nation with its economy heavily dependent on petroleum revenue which accounts for about 80% of government revenue and 90% of foreign exchange earnings. The project, called economic justice campaign, runs from 2008 till.
Importance of agriculture in nigeria economic development. In nigeria, agriculture is an example of one key sector whose role is, and would remain crucial to development fortunes. The existing economic organization works best at or near the center of a particular matrix of economic development, and it also works best in those parts of agriculture. As early as 2007, the foundation invested in several key areas, including valuechain development, soil health, and crop improvement. The fact that economic growth is necessary for sustained development, coupled with data limitation, informs our focus on investigating the contributions of agriculture to economic growth, as measured by gross domestic product gdp, in nigeria. Nigeria, according to its seven point agenda, is focussing on developing. Ojeokoro 3 made an analysis of the contributions of agricultural sector on the nigeria economic development multiple regression was used to analyze the data collected. By focusing on agricultural development, nigeria can speed up its economic growth in the coming decade. The pervasive influence of agriculture on nigerias economic and social. Development of nigerias agricultural subsector will be imperative if meaningful and sustainable national development is envisaged.
This paper investigates the impact of agricultural exports on economic growth in nigeria using ols regression, granger causality, impulse response function and variance decomposition approaches. Agricultural development can also address gender disparities. Pdf this paper examines the long run relationship between agricultural output and economic growth in nigeria for the period 1981 to 2014. It provides employment to a large proportion of citizenry, and provides. Agriculture contributes significantly to the nigerias gross domestic product gdp. The result shows that agriculture plays an important role on nigeria economic development. Agricultural development, a subset of economic development, implies a. Diversification of nigeria economy through agricultural. Analysis of the contribution of agricultural sector on the nigerian economic development. Almost 75% are rurally based compared to less than 25% in urban area. Impact of agricultural sector on economic growth of. Role of agriculture in economic growth development. It contributes immensely to economic growth and development of the economy in various ways, such as creation of. Pdf agricultural output and economic growth in nigeria.
Pdf analysis of the contribution of agricultural sector. Majority of people in nigeria live and work in rural area. The results show that, there is no significant impact of the agricultural sector on economic development in nigeria. Special agroprocessing zones could promote agroindustrial development and employment. One of these material resources includes a vast array of land that is arable. Economic development occurs in a specific locational matrix. Despite the strategies adopted by various governments in nigeria to address agriculture and rural underdevelopment problem, the story remains the same. These locational matrices growth centers are primarily industrialurban. By the time nigeria became politically independent in october 1960, agriculture was the dominant sector of the economy, contributing about 70% of the gross domestic product gdp, employing. The causal dynamics between agriculture and economic growth is an empirical question worthy of further.
This is best achieved through development planning, which can be described as the countrys collection of strategies mapped out by the government. Arthur lewis classic 1954 paper, absolutely foundational to subsequent understanding of how agricultural development ignites economic growth and poverty reduction at larger scales. To therefore improve and sustain the rate of economic growth in nigeria from which poverty could be reduced measures, such as, stable macroeconomic policies, huge investment in agriculture, infrastructural development and good governance are suggested. Branding itself as the giant of africa, the country now needs to prove its potential by raising its standards to a level with other fast developing economies of the world. E31, o11, o47, o55, q10 1 introduction with 75% of the worlds poor in rural areas and most of them dependent on farming, agriculture must be part of world economic growth, poverty reduction, and environmental sustainability undp, 2012. Pdf the impact of agricultural output on economic development. Most of nigerias macroeconomic indices became unstable and worrisome. Agricultural production and economic growth in nigeria. It is the foundation upon which the development of stable human communities, such as rural and urban communities has depended on in many parts of the world. There are three potential sources of labour supply for the developing nonagricultural sectors, namely.
291 375 359 12 1243 376 1189 626 770 153 760 205 1210 1278 1063 1439 777 1352 622 1473 1002 461 1403 491 746 1274 1355 1303 576