Agricultural sector performance and Economic Growth in Nigeria: The Quality and Quantity Measures

Abstract

Over the years Agricultural sector in Nigeria has contributed immensely and consistently to economic growth process in Nigeria in terms of food production, supply of raw materials for industrial use, employment generation, etc. This paper analyses the role of the quality and quantity measures of agriculture in promoting economic growth in Nigeria. The study adopted granger causality test to empirically investigate the sector’s contribution to the economy. This study further examines this impact on economic growth using the Ordinary least Square (OLS) time series regression techniques for the period 1980-2013 for Nigeria. Findings show agricultural sector output exerts a significant positive effect on economic growth when compared to other sectors in the economy such as industrial, building and construction sector and trade sector. Likewise government expenditure on agriculture contributes significantly to economic growth. This study recommends that both the public and private sector should collectively revamp the agriculture sector through increase in capital expenditure in the form of research and development, purchase of machineries, insecticides and fertilizer, loans for farmers. The study finally highlighted the major challenges faced by the sector to include low government spending on agriculture, poor policy implementation, and absence of basic infrastructure for agricultural use, low technology diffusion and diversion of fund meant for agricultural purposes.