Contribution of Agricultural Production to the Growth of the Nigerian Economy
Chapter One
Objective of the study
The primary objective of this study is to examine the contribution of agricultural production to the growth of the Nigerian economy. Specifically, the study aims to:
- Analyze trends in agricultural productivity, output, and performance over time to understand the dynamics of agricultural production in Nigeria.
- Assess the economic contribution of agriculture to the Gross Domestic Product (GDP), employment generation, and income distribution within the Nigerian economy.
- Identify key constraints and challenges facing the agricultural sector, including low productivity, inadequate infrastructure, policy gaps, and market access barriers.
CHAPTER TWO
REVIEWED OF RELATED LITERATURE
Nigeria’s agriculture sector
Originally an agriculture dependent country, Nigeria shifted focus to oil exports in the 1970s and decades of slow economic growth later; there is a need to refocus on agriculture. With the pressure to attain the MGDs, it is important to investigate the contribution of the sector to Nigeria’s economic growth. Agriculture contributes 40% of the Gross Domestic Product (GDP) and employs about 70% of the working population in Nigeria (CIA, 2012). Agriculture is also the largest economic activity in the rural area where almost 50% of the population lives. Nigeria suffers from the resource curse4 (Aluko, 2004; Otaha, 2012). Given the enormous resource endowment both in human capital and natural resources, the performance of the economy has been far below expectation. The most populous nation in Africa, with a population of over 150million and a labour force of 53.83million (2012 estimates; CIA, 2012), Nigeria is blessed with ample source of labour to fuel economic growth. Besides being Africa‟s largest producer of oil, Nigeria‟s gas reserves ranks 6th globally and it has the 8th largest crude oil reserve in the world (Sanusi, 2010). About 31 million hectares of the land area is under cultivation and the diverse climate makes production of a variety of products, from tropical and semitropical areas of the world possible (Chauvin, Mulangu and Porto, 2012). Despite these endowments, the nation ranks among the world‟s poorest economies. The agriculture sector has been the mainstay of the economy since independence and despite several bottlenecks; it remains a resilient sustainer of the populace. In the 1960s, Nigeria was the world‟s largest exporter of groundnut, the second largest exporter of cocoa and palm produce and an important exporter of rubber, cotton (Sekunmade, 2009). More recently, agriculture employs about two-thirds of Nigeria‟s labour force, contributes significantly to the GDP and provides a large proportion of non-oil earnings (CIA, 2013, Sekunmade, 2009). The sector has several untapped potential for growth and development in the availability of land, water, labour and its large internal markets. It is estimated that about 84 million hectares of Nigeria‟s total land area has potential for agriculture; however, only about 40% of this is under cultivation (FMARD, 2012). Productivity in the cultivated lands is also low due to small farm holdings and primitive farming methods. Nigeria has therefore become heavily dependent on food imports. In addition to diverse and rich vegetation that can support heavy livestock population, it also has potential for irrigation with a surface and underground water of about 267.7 billion cubic meters and 57.9 billion cubic meters respectively (Chauvin, Mulangu and Porto, 2012; Lipton 2012). Nigeria‟s large and growing population provides a potential for a vibrant internal market for increased agricultural productivity. In spite of these opportunities, the state of agriculture in Nigeria remains poor and largely underdeveloped. The sector continues to rely on primitive methods to sustain a growing population without efforts to add value.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine contribution of agricultural production to the growth of the Nigerian economy. Enugu North Local government area form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain contribution of agricultural production to the growth of the Nigerian economy (a case study in Enugu North local government area). In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing contribution of agricultural production to the growth of the Nigerian economy (a case study in Enugu North local government area).
Summary
This study was on contribution of agricultural production to the growth of the Nigerian economy (a case study in Enugu North local government area).. Three objectives were raised which included: Analyze trends in agricultural productivity, output, and performance over time to understand the dynamics of agricultural production in Nigeria, Assess the economic contribution of agriculture to the Gross Domestic Product (GDP), employment generation, and income distribution within the Nigerian economy and Identify key constraints and challenges facing the agricultural sector, including low productivity, inadequate infrastructure, policy gaps, and market access barriers.. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Enugu North Local government. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
In conclusion, the study underscores the importance of agriculture as a cornerstone of economic development in Enugu North Local Government Area and Nigeria as a whole. By addressing the identified constraints and harnessing the opportunities within the agricultural sector, policymakers can create an enabling environment for agricultural growth, promote inclusive and sustainable development, and improve the well-being of rural communities.
Recommendations
Based on the findings of the study, the following recommendations are proposed to enhance the contribution of agricultural production to the growth of the Nigerian economy, particularly in Enugu North Local Government Area:
- Investment in Agricultural Infrastructure: There is a need for increased investment in agricultural infrastructure, including irrigation systems, rural roads, storage facilities, and market infrastructure. Improving access to essential infrastructure will enhance agricultural productivity, reduce post-harvest losses, and facilitate market access for farmers.
- Promotion of Technology Adoption: Encouraging the adoption of modern farming techniques, improved seeds, and agricultural technologies is crucial for enhancing agricultural productivity and efficiency. Government agencies, extension services, and agricultural research institutions should collaborate to provide training, technical support, and access to innovative technologies to farmers.
- Policy Support and Institutional Reforms: Policymakers should prioritize agricultural development and enact supportive policies and regulatory frameworks that promote investment, innovation, and competitiveness in the agricultural sector. Institutional reforms, including the establishment of farmer cooperatives, agribusiness associations, and market linkages, are needed to strengthen value chains and enhance the resilience of smallholder farmers.
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