THE ROLE OF AGRICULTURAL SECTOR ON ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA

THE ROLE OF AGRICULTURAL SECTOR ON ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA (ECONOMICS PROJECT TOPICS AND MATERIALS)

ABSTRACT

This research work investigates the Roles of Agricultural sectors on Economic Growth and Development in Nigeria using the multiple regression analysis method. The data utilized spanned between 1981 – 2010.

The research work analyses and describes the past methods of agricultural development In Nigeria and this helps to know the current dispensation and the possible direction that could be followed in the future.

From the finding of this research work, it was observed that if the sector is well funded, itwill provide the needed raw materials for the industrial sector, increase capacity utilization, reduce unemployment rate in the economy and will guarantee food security. Also, the revenue from the sector has influence on economic growth in Nigeria.

Thus, the paper conclude by recommending that government needs to participate and play major roles in the agricultural sector in other to promote and enhance the performance of the sector and invariably add to economic growth of the nation

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND TO THE STUDY

The role of agricultural sector in an economy cannot be overemphasized. The forward and backward linkages to the rest of the domestic economy, to the international market and with poverty alleviation are very strong. A bad year for agriculture due to natural calamities, like drought has extremely adverse effect on GDP growth, living standard of the population, manufacturing output, industrial output, price level, exportable surplus and balance of payments.

The primary purpose of agriculture to development and growth is to feed the people of the country. This role in food production is irreplaceable because the availability of adequate food supply disables scarcity that leads to higher prices and also most people must work to produce enough food for the population (Begg, 2003). Also maintaining a good food supply implies good health for the people hence increased, productivity which will promote economic growth. Output from the agricultural sector serves as input for the activities of the manufacturing, external and the industrial sector – which contributes greatly to economic growth. For example timber from trees is used to make paper, furniture, etc. Also secretions from some plants and trees have healing capabilities and are used to make medicine for the sick. Agricultural products include export goods like cash crops which serve as a source of foreign revenue for the country. In fact these other sectors need the agricultural sector in order to thrive. Agriculture also employs a greater percentage of the inhabitants of the area that is before the discovery of petroleum in Nigeria. This is largely because of the transition from subsistence agriculture to commercial agriculture which is concerned with the production for food for the growing population, provision of raw materials for agro-allied industries (like those engaged in textiles, tobacco, sugar, leather, etc.) and generation of foreign exchange earnings.The agricultural sector is a prominent feature in the Nigerian economy and it has basically remained the same since 1960. This was before the discovery of oil. Sustaining agricultural production is one of the pre-requisites for improving the living standard in any economy. “The Nigerian economy underwent profound structural changes during the 70’s and 80’s. It was once an agriculturally-based economy and a major exporter of cocoa, peanuts and palm products. Today, Nigeria relies mostly on oil for more than 90% of its export earnings, 30% of its GDP, and 70% of its federal budget resources. Neglected sectors like agriculture has caused the Nigerian economy to be in economic stagnation and decline” (Todaro and Smith, 2003).

THE ROLE OF AGRICULTURAL SECTOR ON ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA (ECONOMICS PROJECT TOPICS AND MATERIALS)