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The Impact Of Non-oil Export On Economic Growth In Nigeria (1986-2010)
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This
criticism, according to Adenira (1999) made the Federal Government to
reform the Marketing Board System with a view to increase producers'
prices and income. He said that the essential features of the new reform
are the prices, which are now fixed by a single authority while
producer taxation (export duty and produce sale tax) has been abolished.
Another major innovation in the system is the creation of commodity
boards with responsibility of marketing specific products whenever they
are produced in the country. These boards are likely to reduce
administrative problems and be more economical compared with all
oil-produced state Marketing Boards previously in existence.
The
major fault of the successive government that are supposed to sustain
this sector through the building of macro-economic structures and
incentives diverted their attention away from agriculture. The result
was sharp in the export/import equation as country started importing
even palm oil that was hitherto imploring from Nigeria. The situation
was becoming worrisome thus by 1975 there were attempts to recapture the
lost of glory of agriculture. General Olusegun Obasanjo's operation
feed the nations becomes the first real expressed official attempt in
this direction. It was followed by the establishment of two River Basin
Development Authorities in 1977. By 1978/1979, the federal Government
made budgetary provision to establish 4,000 hectares of mechanized farms
in each of the 19 states then, by 1979, there was a re-launch of
"operation feed the nation" with a new tag "Green Revolution" with
various committees set for its implementation (Oko, 1999).
If the
efforts of the two leaders-General Olusegun Obasanjo and Alhaji Shehu
Shagari's regimes could have brought vigor to the agricultural sector,
the activities of the sic-commodity boards did not assist much.. Oko
said that fixing export product prices without recourse to cost inputs
discourages agriculture therefore remained slow because food demand was
growing at the rate of 3.5% per in the 80's while agricultural output
was crawling at 11 %. Between 1990 and 1998 GDP in agriculture declined
to 6.2%. Then the distributions of agriculture inputs to producers were
neglected, infrastructure facilities like motorable feeder roads, and
irrigation facilities etc, made it difficult to increase agricultural
production. CBN mandate to bank with regard to bank loans to agriculture
as priority sector for preferential leading was floated.
1.2 STATEMENT OF THE PROBLEM
Nigeria
remained a net exporter of agricultural products between 1960 and 1970.
Goods exported included palm oil, palm kernel, cotton, groundnut, etc.
agriculture through export of non-oil products has a rosy record
contribution up to 80% of the gross domestic product and providing
employment for over 70% of the working population. But recently that has
been a steady decline in terms of agricultural product, to export and
an abandonment of sector by a large percentage of the work force.
But
the story of its decline is as pathetic as its impact on industry that
relied heavily on the sector for raw material. Thus, the decline come
with surge of revenue from oil (oil export). But the discovery of crude
oil alone cannot be held responsible completely for the misfortunes or
decline of the agricultural sector. The policy instruments put in place
by successive government were more of lip service than concrete action.
The creation of Marketing Board contributes greatly to the decline of
non-oil export since the Board has the dole right to export the
commodities. It is also pertinent to say that fixing of export product
prices by Marketing Board discourage further private investments in the
sector. Furthermore, the sector suffer from inadequate credit
facilities, they have no security to back-up their loan applications.
Those who are lucky to be given loans do not make proper use of them.
Even existence services were neglected, infrastructure facilities not
provided, CBN directives on agricultural loans floated.
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ABSRACT - [ Total Page(s): 1 ]The essence of this work has been to determine the effect of non-oil export on economic growth in Nigeria, during the period of 1986-2010. In carrying out this study, secondary data were collected and empirical analysis was made. To achieve these objectives, multiple regressions were used in analyzing the data. The empirical results reveal that non-oil export is statistically significant to Nigeria economic growth. On the other hand, oil export also has been significant to Nigeria Economic growt ... Continue reading---
