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Agriculture Is The Economic Mainstay of The Majority of Households in Nigeria

Agriculture is the main economic sector in Nigeria, contributing around 42% to GDP in 2006. It employs over 60% of the labor force and provides food, raw materials, exports, and GDP growth. However, Nigeria's dependence on oil revenue since the 1970s has negatively impacted agriculture. While agricultural growth increased in the 2000s, food security declined. The government implemented several programs to boost productivity, but a comprehensive study of productivity trends across agro-ecological zones was still needed. This paper aims to examine agricultural productivity patterns and drivers in Nigeria from 1995 to 2006 at the agro-ecological zone level.

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101 views2 pages

Agriculture Is The Economic Mainstay of The Majority of Households in Nigeria

Agriculture is the main economic sector in Nigeria, contributing around 42% to GDP in 2006. It employs over 60% of the labor force and provides food, raw materials, exports, and GDP growth. However, Nigeria's dependence on oil revenue since the 1970s has negatively impacted agriculture. While agricultural growth increased in the 2000s, food security declined. The government implemented several programs to boost productivity, but a comprehensive study of productivity trends across agro-ecological zones was still needed. This paper aims to examine agricultural productivity patterns and drivers in Nigeria from 1995 to 2006 at the agro-ecological zone level.

Uploaded by

areola olamilekan
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Agriculture is the economic mainstay of the majority of households in Nigeria (Udoh, 2000) and is a

significant sector in Nigeria’s economy (Amaza, 2000). The important benefits of the agricultural sector

to Nigeria’s economy include: the provision of food, contribution to the gross domestic product (GDP),

provision of employment, provision of raw materials for agro-allied industries, and generation of foreign

earnings labor(until the early 1970s; agricultural exports were the main source of foreign exchange

earnings). A sectoral analysis in 2006 of the real GDP indicated that the agricultural sector contributed to

about 42 percent of the GDP compared with 41.2 percent in 2005 (CBN, 2006). The growth rate of the

contribution of the agricultural sector to the GDP at 1990 constant basic prices grew from 4.2 percent in

2002 to 7.2 percent in 2006. The agricultural sector also employed over 60 percent of the total labor force

in Nigeria in 1999 (Adeoti, 2002). The advent of oil in the early 1970s made Nigeria highly dependent on

oil revenue, with the performance of the agricultural sector adversely affected over years. Though the

growth rate in the agricultural sector in Nigeria increased from an average of about 3 percent in the 1990s

to about 7 percent in mid 2000, the food security/sufficiency status of Nigerians continued to decline.

(Adeoti 2002) The dismal performance of the agricultural sector in terms of its contribution to Nigeria’s

yearly total revenue in the last three decades prompted the government to initiate several agricultural

schemes and programs to enhance agricultural productivity in Nigeria, which include the following: the

River Basin Development Authorities, the National Accelerated Food Production Project, the Agricultural

Development Project, Operation Feed the Nation, the Green Revolution, the National Directorate of Food,

Roads and Rural Infrastructure, the Agricultural Credit Guarantee Scheme Fund, the National Special

Programme for Food Security, Root and Tuber Expansion Project, and the National Fadama I and II

program. Similarly, a series of studies have been carried out to assess agricultural productivity and its

drivers in Nigeria, which include: Adebayo (2006), Adeoti (2002), Ajani (2002), Ajibefun et al. (1996),

Ajibefun and Abdulkadri (1999), Ajibefun and Daramola (2003), Amaza (2000), Awotide (2004),

Ogundele (2003), Ogundele and Okoruwa (2006), Okike (2000), Oredipe (1998), Rahji (2003), and Udoh

(2000). None of the aforementioned studies, however, has assessed productivity within the context of
agro-ecological zones. This paper intends to examine productivity trends and patterns in Nigeria as well

as the drivers of such trends in the last several years, specifically during 1995-2006.

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