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The Empirical Investigation Of The Relationship Between The Agricultural Sector And The Industrial Sector As A Strategy For Economic Growth And Development In Nigerian.
[A CASE STUDY OF NIGERIA ECONOMY]
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1.3 STATEMENT OF THE PROBLEM
The development of a sound industrial base depends on the proper harnessing of agricultural and water resources of the country. Undoubtedly, agricultural progress is a prerequisite for industrial development and by extension for economic growth and development. The agricultural sector has been described by a host of economic historians as been indispensable in achieving industrial development in an economy. However, the problem of food supply and demand and their implications for Nigeria’s overall development have become major national issues. The amount of resources that have been allocated to agriculture in general and the food sub-sector in particular, the supply of local raw materials for industrial development would seem justified only if the anticipated increased in agricultural production and supply are realized. Opinion have been expressed on the linkage between agricultural sectors and industrial sectors as been interwoven judging from the sense that all nineteenth century industrialization were accompanied in their early stage by an increased in agricultural output.
Therefore one can assume that industrialization and agricultural development are not valid alternatives, but rather effective developmental plans must embrace both goals. Thus it remains an empirical issue for verification in Nigeria whether in the country’s development process the agricultural sector is really complementing to the industrial sector’s development given past and present antecedents, if the answer is in the affirmative, we need to establish the link between these two man sectors and the extent of their linkage in Nigeria. Moreover, the importation of finished goods to the country brings about the low growth in industrial sector. However the role of agriculture since independence in the economy has been on the downward trend especially its contribution of Gross Domestic Product (GDP). Its share top GDP fell from 39.9 percent in 1970/71 to 20.0 percent (based on constant prices) in 1988. This situation has been partly due to the mergence of oil as an important commodity and partly to the poor performance of the sector.
1.4 OBJECTIVE OF THE STUDY
The general objective is to look into how industrial development could be attained through effective resources mobilization from the agricultural sector, given the country’s social, economic and political constraints.
The specific objectives are to:
1. Analyzing the agricultural and industrial production growth rates in order to determine if the performance of the agricultural influences the growth and performance of the industrial sectors, because the growth of industry brings about economic growth and development.
2. Analyze agriculture’s contribution to developments materials for sustaining the production of manufactured goods up till today. This period could be said to mark the birth of the agro-allied industries in Nigeria. Sugarcane is used in sugar producing industries, maize is used in beer production with coca serving in the production of beverage in the beverage industries. Agriculture affects and influence industrialize when we consider in terms of its impact on the operations of our food industries it provides the food requirement of the rapidly growing rural and urban Nigeria population.
Agriculture provides employment for over 70% of Nigerian labour force. The agricultural sector has been contributing substantially to the gross domestic products of Nigeria. This contribution has been declining over the years in some countries because of the discovery of some mineral resources and in Nigeria case with the oil boom era, which reduced the emphasis on agriculture also in development plans, for example agriculture contributed 63% to the Nigerian GDP in 1960 but declined to 23.4% in 1975 (United Nation year Book of National Account 1979). Agriculture also provides raw materials which implies a growth and adaptation of agricultural production. With the decline of the oil boom era, the stage is now set for agriculture to take up the prominent role it used to play then.
However, the structural adjustment programme (SAP) embarked upon in lake 1986 by the government to stabilize the economy had a salivary effect on the industrial sector, as the sector recorded an annual average growth of 10.4 percent between 1986 and 1990, with positive growth rates in each of the years. The pace continue but at a decreasing rate, accounted for by sharp fall in manufacturing component, which experienced very low capacity utilization as a result of lack of raw materials, spare parts and other production bottlenecks. For instance, the annual average growth rate of manufacturing component increased form 14.4 percent during 1971/75 to 19.4 and 17.6 percent during 1976-80 and 1981/85 periods respectively. Thereafter the rate of growth of this sub-sector decelerated as a result of factors enumerated above. Indeed, for the first time during the period of analysis, this sub-sector recorded a negative growth rate of 2.4 percent compared with all industry average growth rates of 4.8 percent.
The year to year changes have been uneven in industrial sector, therefore, government has reacted to the declining trends in the manufacturing output by the creation of raw materials research and development council and a raw materials data bank. Through these institution and others, the government hope to improve the capacity utilization through available local raw materials manufacturing using raw materials from local sources were at a strong advantage after the 1986 reforms. By 1989, manufacturers with locally sourced inputs achieved relatively high levels of capacity utilization, tyres (59.8%) leather products (60.3%). Beer and stout (53.4%) textiles (60%) and industrial chemicals (46%). Agro business grew rapidly due to the government policy.
3. Investigate into the problem of agriculture in industrial development in Nigeria.
4. Proposed policy measure on how agricultural productivity can be improved.
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTThis project study the empirical investigation of the relationship between the Agricultural sector and the industrial sector as a strategy for economic Growth and development in Nigeria.The major objective and aims of this project work is to look at the effect of agricultural sector and the industrial sector in Nigeria. The data used in this project are mainly from primary survey data (by the use of questionnaire), personal interview with the respondents and secondary survey data.The fin ... Continue reading---
