Determinants of output of agricultural commodities in Nigeria
Emmanuel Iredele Ogunbayo, Joseph Ayoola Omojolaibi, B. T. Omonona
Abstract
Emmanuel Iredele Ogunbayo, Joseph Ayoola Omojolaibi, B. T. Omonona
Abstract
Agriculture has been the backbone of the economy in Nigeria providing employment and source of livelihood for the increasing population and accounting for over half of the GDP of the economy at independence in 1960. However, the role it plays in the regional and economic development of the country has diminished over the years due to the dominant role of the crude oil sector in the economy. With the increasing food demand in Nigeria, the country has available input, natural resources and potential for increasing the volume of crop production towards meeting the food and nutritional requirement of the rapidly increasing population and guarantee food security in the country. This study was undertaken to analyse the effects of different factors and policies determining the volume of agricultural crop production in Nigeria between 1970 and 2008.This study estimated the production function and regress output of agricultural commodities on the independent variables. The results show that price of agricultural commodities, agricultural land and value of agricultural loan are positive and significantly related to output of agricultural commodities. While the relationship between average total rainfall and output of agricultural commodities was counter-intuitive, that is, a negative, significant relationship exists between average total rainfall and output of agricultural commodities. The study, therefore, recommends that there should be unlimited access to markets and sourcing of production inputs.
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Agriculture has been the backbone of the economy in Nigeria providing employment and source of livelihood for the increasing population and accounting for over half of the GDP of the economy at independence in 1960. However, the role it plays in the regional and economic development of the country has diminished over the years due to the dominant role of the crude oil sector in the economy. With the increasing food demand in Nigeria, the country has available input, natural resources and potential for increasing the volume of crop production towards meeting the food and nutritional requirement of the rapidly increasing population and guarantee food security in the country. This study was undertaken to analyse the effects of different factors and policies determining the volume of agricultural crop production in Nigeria between 1970 and 2008.This study estimated the production function and regress output of agricultural commodities on the independent variables. The results show that price of agricultural commodities, agricultural land and value of agricultural loan are positive and significantly related to output of agricultural commodities. While the relationship between average total rainfall and output of agricultural commodities was counter-intuitive, that is, a negative, significant relationship exists between average total rainfall and output of agricultural commodities. The study, therefore, recommends that there should be unlimited access to markets and sourcing of production inputs.
Key concepts: Agriculture, Agricultural economics, Food security, Livelihood, Agricultural productivity, Population, Production (economics), Economics