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Government Expenditure And Agricultural Production In Nigeria 2010-2017
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Such measures included subsidized/low interest rate policies of the
1970s and early 1980’s, establishment of specialized institutions to
lend solely to the sector, funding agricultural production directly
through budgetary allocation and by 3 establishing agricultural oriented
institutions and progammes such as Nigerian Agricultural Credit Bank
(NACB), Agricultural Credit Guarantee Scheme Fund (ACGSF), Agricultural
Development Programmes (ADPS), River Basin Development Scheme (RBDS) and
Operation Feed the Nation(OFN). Following the adoption of SAP in 1986,
Commodity Boards were abolished in order to provide productive
incentives to the farmers through increased producer prices. Also, in
the period 1970-82 annual production of major export crops such as
cocoa, rubber, cotton and groundnuts fell by 43, 29, 65, and 64 percent
respectively (Olomola, 1998). While, the average growth rate is the
value of agricultural exports increased astronomically in 1986 to 1990
sub-period by 70.5 percent due to initial impact of SAP. It remained a
little lower but still high in the 1991/95 sub-periods by 68.5 percent,
again due to the effect of SAP but became relatively low in the
1996/2000 at 18.2 percent as the effect of SAP wore off (Manyong, 2003).
Despite decade of public sector contribution to agriculture, there were
evidences of unstable or fluctuating trends. In this research, efforts
has been made to find out what is responsible for the downward trend in
the contribution of agriculture to food supply, Gross Domestic Product
(GDP), foreign exchange earnings and raw materials. Also, why there has
been mixed result from the financing policies and programmes of
government for agriculture in Nigeria.
1.2 Problem statement
The
importance of agriculture to the economic development of Nigeria is
enormous owing to the fact that agriculture was the main source of food
and employment for a sizeable number of the people. Public expenditure,
which serves as the bed rock of financing for the sector has
consistently fallen short of the public expectation. For instance, a
collaborative study carried out by the International Food Policy and
Research Institute (IFPRI) and the World Bank in 2008, revealed that
Nigeria’s Public expenditure on agriculture is less than 2% of total
federal annual budget expenditure. This is significantly low compared to
other developing countries like Kenya (6%), Brazil (18%) and 10% goal
set by African leaders’ forum, under the comprehensive Africa
Agricultural Development Programme (CAADP). In spite of poor investment,
agriculture has on the average contributed 32% of the country’s GDP
from 1996-2000 and 42% between 2001 and 2009 (CBN, 2010). According to
CBN Governor in 2011, agriculture accounted for 40% of the nation’s GDP,
yet it received only 1% of the total commercial Bank Loans (People’s
Daily, 2011). Inadequacy of government funding of agricultural projects
and programmes has been observed by researchers because lack of strong
evidence of growth promotion externalities by deepening food insecurity,
social inequality, rural poverty and hunger, are issues of funding
(Ogiri, 2004; Ogbonna and Osondu, 2015). This study therefore is set to
determine the contribution of government funding in terms of expenditure
to agricultural production in Nigeria between 2010-2017 and compare
with some other factors on which agricultural output depends. This will
guide policy making for increased agricultural productivity in the
nation.
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ABSRACT - [ Total Page(s): 1 ]Over the years, Agriculture has proved to be the strongest means of livelihood all over the world. The produce from agriculture has been immense and the growth has been steadily upward in the developed countries. Developed countries has given adept attention to agriculture as the population of its citizens ride on geometric progression. In Nigeria, we have witnessed an upward and downward syndrome in the movement of Agricultural production. One major way to boost this movement and increase signi ... Continue reading---
