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The Impact Of Agricultural Development On Nigeria Economic Growth
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Thus from N47.8 million in the 60s, the cost
of food imports in Nigeria rose to N88.2 million in 1970 and N1,027.0
million in 1988 (Alkali, 1997:19-21). Since the 1990s till the ban of
rice importation, Nigeria has been spending an average of 60 million USD
on the importation of rice annually. In 1994, the agricultural sector
performed below the projected 7.2 per cent of budgetary output. (Lawal,
1997:197-198).
Beginning from year 2000, Nigeria import expenditure
on both food and live animals rose to N113,489.8 million in the year
2000 from N103,489.8 in 1999. The cost of importation continued in its
upward trend, in 2002 it was N144,297.6, N201,648.3 in 2003, then
N178,747.4 in 2004, N193,259.1 in 2005 and N235,440.0, N271,679.7 and
N355,287.0 from 2006 to 2008 respectively. (National Bureau of
Statistics, and CBN Statistical Bulletin Golden Jubilee Edition, 2008).
Between
1995 and 1998, the Government further embarked on the reformation of
lending policies of the Agricultural Credit Guarantee Scheme (ACGS) for
easier access to agricultural credit. It also established the Calabar
Export Processing Zone (EPZ) and initiated the Enugu, Kaduna, Jos and
Lagos EPZs with each specializing in specified food and export crops.
In
fact, the National Rolling Plan for 1996 – 1998 assumed that by the
year 2000, Nigeria would have been able to feed its population, develop
the capacity to process agricultural raw materials both for local
industries and for export and significantly increase the contributions
of the agricultural sector to the GDP (Lawal, 1997:193). These
objectives have turned out to be a mirage mainly because of official
corruption.
In order to get out of this, the Nigerian Government need
to actively promote the establishment of the kind of agro-based
industries that are capable of processing Nigeria’s agricultural raw
materials in a most efficient manner. Thus the emphasis should be on
the local processing of raw crops for local industries as well as for
exports. This will create more employment opportunities and additional
income will be generated. The provision of agricultural subsidies for
fertilizer, farm implements and equipment would also boost agricultural
production. In addition, there is the need to protect the agricultural
sector from foreign imports and competition. It is also necessary to
provide replanting grants to cash crops farmers so that they can replace
their old trees with newer varieties.
It has been observed that in
spite of the fact that these newer varieties are higher yielding and
relatively easy to maintain with a shorter maturation period, most
farmers are reluctant to do away with their old, plantations because of
the high cost of replanting new ones. (Ogen, 2004:135). It is equally
important to provide special welfare schemes for farmers that will form
part of a social policy to alleviate rural poverty and the
redistribution of income in favour of the rural poor. Government should
also strive to promote greater efficiency in the rural areas by
extending equal social benefits, establishing national schemes for
agrarian reforms and improving the quality of life in areas that are
quite remote so as to alter the movement of people from rural
communities to urban areas. Furthermore, the resuscitation and
development of the critically ailing Nigeria Sugar Industry and its
bye-products, especially ethyl alcohol (ethanol) which comes from
molasses (a bye-product of sugar cane) is of an urgent and critical
necessity. Given the intractable and embarrassing problem of fuel
queues in Nigeria, ethanol could be used to produce a brand of
automobile fuel known as alcogas or green petrol. Apart from being a
renewable source of energy, and unlike fossil fuels, alcogas has little
or no adverse effect on the environment.
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