GOVERNMENT EXPENDITURE AND AGRICULTURAL PRODUCTION IN NIGERIA (1970 – 2010).
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GOVERNMENT EXPENDITURE AND AGRICULTURAL PRODUCTION IN NIGERIA (1970 – 2010).
Chapter One: 1.0 Introduction
1.1 Background of the Study
Any nation’s socioeconomic growth is usually determined by a number of elements that work together to ensure the effective achievement of established development goals. One of these factors is agriculture.
Its discovery dates back to 800 BC, which is considered the new Stone Age, when man began to plough land and grow crops using rudimentary stone implements.
According to Maslow (1954), food is one of man’s physiological requirements that must be met before other wants may be met. Morgan and Henson (1085) claim that agriculture will continue to be a vital factor until the end of human life, which supports Maslow’s assertion.
Agriculture’s importance in any nation’s socioeconomic growth has prompted many countries around the world (both developed and developing) to prioritise its development.
This is obvious in the number of projects implemented by both international institutions and individual governments to boost agricultural activities. In Nigeria, for example, successive administrations have introduced and implemented projects in this area.
Operation Feed the Nation (O.F.N.), Agricultural Research Policy, Agricultural Development Project, Agricultural Credit Government Scheme, The Green Revolution, River Basin Development Authorities (RBDA), National Agriculture Land Development, Nigeria Agricultural and Co-operative Bank (NACB)
The Structural Adjustment Programme (SAP), Directorate of Food, Roads, and Rural Infrastructure (DFRRI) (Anyanwu, 1960-1997). It is discouraging, however, that despite the commendable character of these projects and the enormous financial resources poured on them, their economic impact remains insignificant.
However, the challenge that the Nigerian agriculture industry faces today can be traced back to the finding of crude oil. The discovery of crude oil deposits in several sections of the country in commercial amounts in the mid-1960s, combined with the oil boom of 1974 caused by America, had a negative impact on the agriculture sector.
As a result, the economy came to rely largely on oil. For example, the oil sector accounts for 20% of GDP, 95% of foreign exchange revenues, about 85% of overall exports, and 65% of budgetary revenue (Anyanwu 1997).
Agricultural contributions to the economy were critical to preserving economic growth and stability, and consistent growth in agricultural exports served as the foundation for a positive trade balance.
Primary processing of agricultural raw materials aided in the sectors by imposing taxes and accumulating marketing surpluses, which were used to fund various development projects.
The agricultural sector, on the other hand, is degenerating into a sort of peasant agriculture, which is trapped in a vicious cycle of poverty, with low pay and disguised employment leading to poor saving and little investment in technology.
As a result, the government’s attention is drawn to the sector’s development. The development of the agriculture sector is one of the most important requirements for pushing the economy forward. As a result, the focus of this research is on government spending on agricultural output in Nigeria, as well as ways to boost its productivity and economic role.
OBJECTIVE OF THE STUDY
The basic purpose of this study is to analyse the relationship between government expenditure and agricultural productivity in Nigeria, more specifically:
To identify the issue of agricultural funding in Nigeria.
Provide policy proposals for improving Nigeria’s agriculture sector.
To assess the efficacy of government spending on agricultural production in the Nigerian economy.
STATEMENT OF PROBLEM
In recent years, particularly since the formation of Nigeria’s current democratic government, the agricultural sector of the economy has continued to perform below expectations, despite large quantities of money dedicated to the sector in each year’s budget.
In 2002, the sector was allocated approximately N9.874 billion. In addition to the year’s allotment, the Food and Agriculture Organisation (FAO) provided about 72 million dollars to the 36 states of the federation in 2002.
According to Iheagu (2002), the money cannot be said to have a legitimate purpose. Rather, what one observes is the government’s common “Lack Lustre” attitude towards the overall execution of the initiative.
He stated that everything is on one side, with an increasing number of unemployed teenagers walking around. He also stated that warning signals are booming across the state of the federation about the possibility of a butcher National Food Security programme, which could result in a situation similar to what is happening on a daily basis due to the price of food items in the market and the country’s crude farming system.
The scenario calls into question the success of the country’s different agricultural policies, necessitating an examination of the effectiveness of government expenditure on agricultural production in the Nigerian economy.
Significance of the Study
The study is crucial because it will assist answer the issue of the federal government’s requirement to finance and boost the sector, as well as offer agencies for monitoring and maintaining policies on a regular basis to ensure considerable economic growth and development.
It will also aid in the resolution of major issues concerning raw resources for the country’s newborn industries.
SCOPE OF THE STUDY
This study aims to examine the impact of government spending on agricultural growth in Nigeria from 1970 to 2010. This study will also look at how agriculture has contributed to economic development over the years, as stated above.
Statement of Hypotheses
Ho: Government expenditure in the agriculture sector would not result in agricultural development in Nigeria.
VS
Hello: Government investment in the agriculture sector will contribute to agricultural development in Nigeria.
1.7 Limitations of the Study
This job was not particularly efficient; the challenge of allocating time between the research study and other academic work was a significant constraint because the two activities occurred concurrently. Another important issue was a lack of funds to cover all components of the project.
Definition of Terms
Due to their involvement, the following terminology will be used:
AGRICULTURE: This study defines agriculture as the cultivation of land resources, as well as the growing and rearing of animals for the aim of producing food, feed, and raw materials for human, animal, and industrial use.
FARMER: This is a collective name for persons who work in agriculture as cultivators or harvesters.
INDUSTRY: This term refers to the different institutions involved in the manufacture of secondary or final items for economic purposes, utilising agricultural output.
BOOM: This simply refers to a sudden rise in commercial activity, particularly when money is made quickly.
PRODUCTION is the process of making goods and services available to the public.
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