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ECONOMICS

ROLE OF INTERNATIONAL AGENCIES IN INCREASING AGRICULTURAL PRODUCTION

ROLE OF INTERNATIONAL AGENCIES IN INCREASING AGRICULTURAL PRODUCTION

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ROLE OF INTERNATIONAL AGENCIES IN INCREASING AGRICULTURAL PRODUCTION

Chapter one

INTRODUCTION

1.1 Background of the Study

Agriculture has been the backbone of Nigeria’s economy, providing jobs and a source of income for the growing population. It accounted for half of Nigeria’s GDP at independence in 1960 (Balogun, 2000; Olagunju, 2004).

However, its position in Nigeria and the country’s economic development has reduced over time as a result of the crude oil sector’s leading role in the economy and the aggregate proportion of GDP.

Despite this, the industry contributes for over 40% of GDP and employs approximately 60% of Nigeria’s 144 million people, both formal and informal (Digbokar, 2001; Onyeahialam, 2002; Dagunju 2007, National Agricultural Economy and Policy Report; 2009; Odoemation, 2011).

To fully revitalise agricultural production in Nigeria, the federal government implemented a number of agricultural programmes. These initiatives include the National Accelerated Food Production Programme, Operation Feed the Nation, the Agricultural Credit Government Scheme, River Basin Development Authorities, the Green Revolution, and the National Agricultural Land Development Authority (Aigboxar, 2001; Akande, 2006).

The World Bank-assisted Agricultural Projects (ADPs) were also launched in 1972 (Balogun 2000, Okeke 2000) to improve the traditional system of production and raise the productivity, income, and standard of living of small-scale farmers, who account for more than 60% of gross domestic food supplies (Olayemi, 1980, Ayichi, 1995).

The success of experimental systems developed in Northern Nigeria’s enclave districts of Funntu, Guzan, and Gombe led to their statewide expansion in 1984 (Fasoranti, 2006; Auta and Dafinang, 2010).

The Commercial Agricultural Development Project (CADP) is a federal government initiative in Nigeria to diversify into non-oil sources of economic growth after relying heavily on the oil and gas sector.

The initiative aims to improve agricultural productivity in Nigeria by facilitating the commercialization of agricultural production, processing, and marketing output among small and medium-sized commercial farmers and agro-processors.

To achieve the desired objectives, the project is aimed at boosting access of participating commercial farmers to new technologies, enhanced infrastructures, finance, output markets, and strengthening agro-access to market for some specific value chairs among commercial farmers.

Five states—Cross River, Kaduna, Kano, and Lagos—are taking part in the project’s pilot phase. Enugu’s value charis include chicken, fruit trees, and maize as basic crops.

It is expected that people’s socioeconomic development should reflect the amount of resources spent to improve their well-being, so the project focuses on how far the World Bank-assisted project has helped to improve the socioeconomic development of the state’s people in general.

Every year, the World Bank, through its agencies, organises and implements programmes and projects targeted at addressing the challenges of the state’s people. These projects are meant to contribute to the state’s socioeconomic development.

These are packaged to maximise the goodness. The initiatives are people-oriented, thus it is critical to assess their position in the world in relation to the state’s socioeconomic development. Are World Bank initiatives truly supporting the state in its socioeconomic development efforts?

How does the World Bank initiative contribute to the state’s socioeconomic development efforts?

It has been observed that World Bank projects in many nations aim to improve people’s well-being. It is planned that the instance of Enugu State will not be an exception.

1.2 Statement of the Problems

The following are the problems/challenges that research aims to address:

– The majority of international aid does not reach farmers.

– Because international agencies are unaware of the basic needs of Nigerian farmers, most of their interventions (foreign intervention) do not meet their direct needs.

– Corruption-related issues make it difficult for international agencies to have the intended influence in Nigeria’s agricultural sector.

– Farmers’ illiteracy and ignorance make it extremely difficult to use modern farming practices in Nigeria’s agricultural industry.

– The majority of farm inputs are outmoded and out of date in terms of producing desired improvements in the agricultural industry.

1.3 Object of the Study

The primary goal of this research is to determine the influence of foreign agencies in enhancing agricultural productivity in Nigeria. Analysis of a World Bank-supported initiative in Enugu State (A case study of the Commercial Agricultural Development initiative CADP).

The specific objective deals with the purpose of the research work, which include:

1. Investigate the socioeconomic characteristics of recipients of commercial agricultural development projects.

2. To determine the circumstances that led to commercial agricultural development programmes granting grants for farmers.

3. Determine the extent of counterpart funding compliance among commercial Agricultural Development project beneficiaries.

4. Determine the level of synergy that exists between the donors, i.e. the World Bank, the federal government, and the Enugu State Government.

5. Determine the number of beneficiaries of the scheme or project since beginning.

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