Impact of Agricultural Funding on Unemployment Reduction in Nigeria (1985 -2016)
Chapter One
Objectives Of The Study
This study focuses on the impact of government funding on unemployment reduction in Nigeria. To this end, the specific objectives are as follows:
- To examine the effect of agricultural funding on unemployment reduction in Nigeria.
- To ascertain if there is a sustainable long-run relationship between agricultural funding and unemployment reduction in Nigeria.
CHAPTER TWO
LITERATURE REVIEW
CONCEPTUAL FRAMEWORK
Agriculture and Agricultural Funding
Conceptually, agriculture is the production of food, feed, fiber and other goods by the systematic growing and harvesting of plants and animals. It is the science of making use of the land to raise plants and animals. It is the simplification of nature’s food webs and the rechanneling of energy for human planting and animal consumption (Dori, 2016) 2008). Until the exploitation of oil reserves began in the 1980s, Nigeria’s economy was largely dependent on agriculture. Ijere (1998) opined that agriculture is the profession of majority of humans. The United Nations Organization (2008) estimated that the world as a whole, over 50% of the world population is engaged in agriculture or dependent of it for a living, this is a general description of the sector. On the other hand, it includes farming, fishing, animal husbandry and forestry.
The concept of agricultural funding in Nigeria has over the years been largely a private indigenous activities. Government has intensified efforts and interest in the sector to infuse foreign private participation. According to Udoka (2015) agricultural financing is the sourcing of fund and making it available for agricultural production and uses. Agricultural funding simply means the acquisition and utilization of funds for agricultural purposes. It involves the efficient sourcing of funds on both money and capital market and the judicious and efficient disbursement of funds sourced for agricultural and agro-allied productions so that the investor will be able to pay both the interest and principle as and when due and generate enough return from his investment (Agbada, 2015).
Concept of Unemployment
Provision of employment opportunities to the masses is a means of ensuring participation of all citizens in the national development process. Lack of employment opportunities for many Nigerians has resulted in large number of Nigerians living in poverty. In turn, poverty leads to alienation of poor people (who are often rural residents) from political-economic functioning of their society. This cycle is complete when alienation further decreases these citizens interest in developing the skills, knowledge, tools, beliefs, and values to perform financially rewarded activities. Corruption and insincerity of Nigerian leaders and citizens have caused unemployment to rise at an alarming rate (Ayinde, 2013).
Ayinde (2013) defined unemployment as a situation in which people who are willing to work at the prevailing wage rate are unable to find jobs. In recent times, the definition of unemployment by the International Labor Organization states that “the unemployed is a member of the economically active population, who are without work but available for and seeking for work, including people who have lost their jobs and those who have voluntarily left work (Mangoel, Ajiji, Damar, Damyal, Da’ar and Zarmai, 2012). The application of this definition across countries has been faulted, especially for the purpose of comparison and policy formulation, as countries characteristics are not the same in their commitment to resolving unemployment problems, more so, the preponderance of housewives who possess the ability and willingness to work, the definition of the age bracket all stand as limitations to the definition by International Labour Organization (Ayinde, 2013).
There are many causes of unemployment and it is vital that we understand them in order to combat this social evil. People who lack skills, knowledge, tools, beliefs, and values to perform financially rewarded activities are not usually employable. This results in a lack of employment opportunities, as employers tend to locate their businesses where appropriate human resources are available. The vicious cycle of poverty and unemployment therefore continues unabated (Ayinde, 2013).
CHAPTER THREE
RESEARCH METHODOLOGY
This chapter deals with the method and procedure that will be adopted in the conduct of this study with a view to providing answers to the research questions and research hypothesis posed in chapter one.
Research Design
The research design used for this study is ex-post facto. The justification for this is that the study sought to investigate possible relationships by observing an existing economic condition and searching back in time for plausible contributing factors. By definition, ex-post facto study or after- the-fact research is a category of research design in which the investigation starts after the fact had occurred without interference from the researcher (Obasi, 1999).
Nature and Sources of Data
The time series data used for analyzing for the possible impact of agricultural funding on unemployment reduction were all secondary data sourced from Central Bank of Nigeria Statistical Bulletin and Annual Reports 2015 edition.
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF RESULTS
Presentation of Data
This data was presented with Microsoft Excel and a logarithm transformation of data presented was taken in order to standardize the values of variables and as well as enable the researcher interpret the coefficients of the variables.
CHAPTER FIVE
SUMMARY, RECOMMENDATION AND CONCLUSION
Summary
Through the course of this study, attempt has been made to examine the impact of agricultural funding on unemployment reduction in Nigeria. This study covered a period of 1985-2016 which is period of 31 years. The apriori assumption that agricultural funding has an effect on unemployment reduction was investigated to find out which is obtainable in Nigeria. Also it investigated if there exists a sustainable relationship between agricultural funding and unemployment reduction in Nigeria.
The literature review put into consideration the various sources of agricultural funding and touched various policies established by the Nigerian government to fund agriculture. The theoretical reviewed the Keynesian and classical view on unemployment.
The regression results shows that both banking sector credit and Government Expenditure on Agriculture have positive effect on unemployment in Nigeria while Inflation and Interest rate have negative effect on unemployment. The cointegration test also indicates that these variables are cointegrated.
Policy Recommendations
Based on the findings of this study, the researcher recommends that
- Agriculture should be given a proper attention and funding of agricultural policies should be monitored and implemented in other to reduce unemployment in Nigeria.
- Government expenditure on agriculture and loans from bank should be increased so as to make funds available for agriculture which will reduce unemployment in Nigeria.
- The appropriate authority should not relent in checking inflation and interest rate so ensure the right flow of capital and funds to the farmers to avoid its negative effect on unemployment.
CONCLUSION
Agriculture has gathered major attention and researchers has proposed solutions in other to diversify the economy through agriculture. But for agricultural funding to reduce unemployment in Nigeria, policy makers should be able to make agricultural policies that is favourable to the farmers, loans and credits from commercial banks should be increased for funds to be available which will thereby make agriculture easy and interesting to be taken as jobs.
Finally, proper attention should be placed on the implementation of these policies and Government funds directed towards agriculture should be monitored by various agencies to ensure that there is no diversion of funds and implementation.
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