ABSTRACT
The
impact of public expenditure on agriculture in Nigeria is enormous. Government
having recognized agriculture as the second highest sector after oil of which
the country depends for food, employment and foreign exchange. This project
work would summarize the magnitude and composition of governments’ expenditure
on agricultural sector since 1960 The
project also examines that contribution of agriculture towards Gross Domestic
Product (G.D.P), between the year 1960 when Nigeria got independent and up till
the beginning the oil boom in the early 1970s. Underutilization of revenue
derived by the government could bring about a downturn in the economic growth, it
is with this in mind that the study intend to achieved by examine the impact of
public Agriculture Expenditure on the Agriculture output and the economic
growth (G D P), an objective was set to
address the problem stated;
The review of the Theoretical and
Empirical literature provided a basic for the selection and specification of
the model that was used to ascertain whether public Agriculture Expenditure
have any significant impact on Agricultural output and Economic Growth or not.
To put an abrupt end to the problem, policies were recommended as a lasting
solution to the deficiencies recorded over the years.
TABLE OF CONTENT
Title
page……………………………………………………………… i
Approval………………………………………………………………
ii
Dedication…………………………………………………………….
iii
Acknowledgement…………………………………………………….iv
Abstract………………………………………………………………...v
Table of
contents………………………………………………………vi
CHAPTER
ONE
1.1 Background of study….…………………………………..1
1.2 Statement of problem….………………………………...3
1.3 Objective
of study……………………….…………………….4
1.4 Hypothesis
of study…………………………………………...4
1.5 Significant of study………………………………………...4
1.6 Scope and limitation of study………………….………6
CHAPTER
TWO
LITERATURE
REVIEW
2.1 Theoretical Literature
Review……………………………………8
2.2 Empirical Literature
Review……………………………………11
2.3 The Role of Agriculture
on an Economy…………………15
2.4 Public Policies on
Agricultural
Development in Nigeria ……………………………………………….17
2.5 The Government Impact
on Agriculture………………25
2.6 Agriculture and Nigeria
Economy…………………………27
2.7 Performance of
Agriculture in Nigeria ……………………31
2.8 The Pre-oil Boom
Era……………………………………………36
2.9 The Post Oil Boom and
Agriculture………………………37
2.10 The Incentives to
Developed
Agriculture in Nigeria ……………………………………………41
2.11 The Role of
Government in Resource Mobilization for Agricultural Development…………………………...45
2.12 Encourage foreign investment
on Agriculture……..
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1 Methodology……………………………………………………50
3.2 Model Specification…………………………………50-52
3.3 Method of
Evaluation……………………………52-58
3.4 Data Required and
Source……………………58-59
CHAPTER
FOUR
PRESENTATION
AND ANALYSIS OF RESULT
4.1 Presentation of
Result……………………………60-67
4.2 Economic Interpretation………………………67-70
4.3 Statistical Criteria
of the Result…………70-73
4.4 Econometric Criteria
of the Result……73-77
4.5 Evaluation of
Hypothesis……………………77-78
CHAPTER FIVE
SUMMARY,
CONCLUSION AND POLICY RECOMMENDATION
5.1 Summary of Findings……………………………………………79
5.2 Policy
Recommendation……………………………………80-81
5.3
Conclusion…………….…………………………………………81-83
Bibliography………………………………………………………..84-87
Appendix
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Agriculture, in whatever form it comes or
exists-food and cash crops production, livestock, poultry, animal husbandry,
hunting and Horticulture-has its roles to play in any Nations Economic growth and devolvement is crucial. Among
these roles are sources of food for the growing population, raw material for
the manufacturing sector, reduction of inflationary pressure, earner of foreign
exchange, empowerment of the labour force, source of income and savings for the
farmer and improvement in their living standards, and market for products of
the manufacturing sector. (Jhingan M.L 1975).
But, unfortunately for Nigeria as a developing Nation, these roles are
hardly met by the Agricultural sector because of the internal and external
factors facing farmers in Nigeria .
A catalogue of reasons have been advanced for the relative poor performance of Nigeria ’s
agricultural sector. Key among these macroeconomic disequilibrium including
interest and foreign exchange rate volatilities, poor infrastructure base,
policy inconsistency and unnecessary intervention by the public sector which
sends wrong (crowding out) signal to the private sector. (Eboh E.C, 2003).
Other important constraints include
inadequate public agricultural expenditure, over dependence on crude oil
revenue, rural-urban migration, inadequate processing and storage capacity,
smallness of farm holdings, ageing population, use of inefficient traditional
technology, inadequate agricultural extension services, policy inconsistency
and increasing population pressure etc.
In an attempt to solve these problems of
agricultural sector, the Federal and State governments of Nigeria
intervene through some agricultural policies and programmes. Notable among the
these policies are the operation field the Nation (OFN), the Green revolution
(GR), land use degree, fertilizer company of Nigeria (NAFCON) and the National
Agriculture land development authority (NALDA) and the latest is the
agriculture development project (ADP). Meanwhile, these policies have not
helped much in improving significantly the agricultural sector as the costs
involved are still more than the benefits realized.
Perhaps, for the impact of public expenditure,
surplus public agricultural expenditure allocation on the sector itself in Nigeria , is to
be more effective, efficient workable and successful in some of these
agricultural policies.
1.1 STATEMENT OF THE PROBLEM
The agricultural sector has been affected with
numerous problems which has been the result of the poor performance of the
sector itself.
This has attracted various strategies
including expansion of public expenditure on agricultural activities. Overtime
this expenditure has been on the increase without expressly translating to a
corresponding expansion in agricultural output. The question that comes to mind
are:
1. What is the impact of public agricultural
expenditure on agricultural output in Nigeria ?
2. What is the impact of public agricultural
expenditure on economic growth in Nigeria ?
1.3 OBJECTIVES
OF THE STUDY
The overall objective of this study is to
determine how public expenditure can improve agricultural output.
However, the specific objectives are as
follows:
1. To determine the impact of public
agricultural expenditure on agricultural output.
2. To determine the impact of public
agricultural expenditure on economic growth.
1.4 HYPOTHESIS OF THE STUDY
The
hypothesis tested in this study are as follows:
1. Public agricultural expenditure has no
significant impact on agricultural output.
2. Public agricultural expenditure has no
significant impact on economic growth.
1.5 SIGNIFICANCE OF THE STUDY
Once regarded as the mainstay of the
economy and also the provider of employment, food and foreign exchange thus;
adequate public agricultural expenditure on the agricultural sector is
significant.
This study is intended to determine the
trends of public agricultural expenditure on agricultural output in Nigeria in order
to ensure food security to and reduce poverty in the economy.
This study will also show the impact of
public agricultural expenditure on the economic growth of Nigeria over
time. The result of the study will be of great benefit to the federal republic of Nigeria because economic growth is the
vehicle of development. Development is the sustained elevation of an entire
society and social activities towards a better and more human life.
The result of this study will be
significant in the following ways:
1. It will help the Nigerian government and
her policy makers to restore fiscal
Discipline in Nigeria .
2. The study will be important in debt
management in Nigeria .
3. It will also have implications for
formulating a workable model.
1.6 SCOPE AND LIMITATION OF THE STUDY
This study covers the period of 1978-2007,
a period of twenty-nine years; basically this research focuses on the trend of
public agricultural expenditure and some contributions of agriculture to the
economy itself (GDP).
The scope also comprises of some inherent
problem facing the agricultural sector, its prospects and policy recommendation
to attain a high level of productivity.
There is no end of knowledge and like( Anumudu
C.N) will say; there is no failure anywhere only that people have just failed
to succeed. In the bead of trying to succeed and failing to fail that this work
become a success if not many factors without our ability to achieve a desired
result some of which include the bottlenecks prevalent in the mobilization of data,
which was a major concern to the essence of this work.
There
is also lack of strong evidence in the theoretical framework of this topic that
would have provided a reliable foundation for us to stem from a particularly
Nigerian case. There is also the limitation of the small sample size which has
its attended drawbacks.