The Contribution Of The Agricultural Sector To The Development Of Nigeria Economy 1983 - 2015

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In the 21st century agriculture is one of the divers industries which are increasing rural income as well as long term stability of its natural resources. This can create different activities which will affect farmers, stakeholder, customers and government industries. Information and communication technologies have most important information about agriculture in developing countries. These developing countries now are connected with developed nations and getting the latest information and technologies regarding weather, natural resources and other related information (Rao, 2010).

Addul, Barkatullah, Ghulam, and Shakil (2014) noted that most of the developing countries are using different technologies and other sources for the development of agriculture and economic development. The agricultural sector is constantly being developed to the fullest extent possible with available means as a whole can progress only by the efficient and rational use of them. According to Ogidi (2015), in any nation, the agricultural sector has a great importance attached to it. Hence, agriculture constitutes one of the most important sectors of the economy. The significance of agriculture resource in bringing about economic growth and sustainable development of a nation cannot be underestimated. Agriculture contributes to the growth of the economy, provides employment opportunities for the teaming population, export revenue earnings and eradicates poverty in the economy. Abayomi (2009) stated that stagnation in agriculture is the principal explanation for poor economic performance, while rising agricultural productivity has been the most important concomitant of successful industrialization.

Oji-Okoro (2011) is of the opinion that agriculture resource has been an important sector in the Nigerian economy in the past decades, and is still a major sector despite the oil boom; basically it provides employment opportunities for the teeming population, eradicates poverty and contributes to the growth of the economy. The pervasive influence of agriculture on Nigeria’s economic and social development has also been articulated by Oluwasami (2013). A strong and efficient agricultural sector would enable a country to feed its growing population, generate employment, earn foreign exchange and provide raw materials for industries. The agricultural sector has a multiplier effect on any nation’s socio-economic and industrial fabric because of the multifunctional nature of agriculture (Ogen 2007).

Agriculture has been defined as the production of food and livestock and the purposeful tendering of plants and animals, (Ahmed, 2013). He stated further that agriculture is the mainstay of many economies and it is fundamental to the socio-economic development of a nation because it is a major element and factor in national development. In the same view, Okolo (2004) described agricultural sector as the most important sector of the Nigeria economy which holds a lot of potentials for the future economic development of the nation as it had done in the past. Notwithstanding the enviable position of the oil sector in the Nigerian economy over the past three decades, the agricultural sector is arguably the most important sector of the economy. Agriculture’s contribution to the Gross Domestic product (GDP) has remained stable at between 30 and 42 percent, and employs 65 per cent, of the labour force in Nigeria (Emeka 2007).

Generally, the agriculture sector contributes to the development of an economy in four major ways-product contribution, factor contribution, market contribution and foreign exchange contribution (Abdullahi 2012; World Bank 2010). Therefore, base on the above background this study aims to examine the contribution of the agricultural sector to the development of Nigeria economy between 1983 and year 2015 using econometric technique.

1.2 STATEMENT OF THE PROBLEM

In the study of Manyong et al., (2015) they reported that inspite of Nigeria’s rich agricultural resource endowment, there has been a gradual decline in agriculture's contributions to the nation's economy. In the 1960s, agriculture accounted for 65-70% of total exports; it fell to about 40% in the 1970s, and crashed to less than 2% in the late 1990s. The decline in the agricultural sector was largely due to rise in crude oil revenue in the early 1970s. Less than 50% of the Nigeria’s cultivable agricultural land is under cultivation. Even then, smallholder and traditional farmers who use rudimentary production techniques, with resultant low yields, cultivate most of this land. The smallholder farmers are constrained by many problems including those of poor access to modern inputs and credit, poor infrastructure, inadequate access to markets, land and environmental degradation, and inadequate research and extension services. The inability to capture the financial services requirements of farmers and agribusiness owners who constitute about 70 percent of the population is inclusive (Lawal, 2011).

Low agricultural output has a negative effect on the Nigerian economy as a whole. Several factors have been identified to enhance or retard growth in the agricultural sector. These factors include education (Huffman 2009;; Weir 2012), infrastructure (Querioz and Gaultam 2012) and inflation (Gokal and Hanif 2014).

1.3 Research Question

  1. To what extent is technology relevant in increasing agriculture production in Nigeria?
  2. What are the contribution and general impacts of agricultural output on the Nigerian economy?

1.4 Objective of the Study

          The main objective of this study remains on the impact of agricultural sector to the development of Nigeria economy.  Other specific objectives include:

  1. To find out the relevance of technology in increasing agriculture production in Nigeria.
  2. To examine the impact of agricultural output on the Nigerian economy.

1.5 Research Hypothesis

Hypothesis one

Ho:     Technology has no relevance in increasing agriculture production in Nigeria.

Hi:     Technology has relevance in increasing agriculture production in Nigeria.

Hypothesis two

Ho:     Agricultural output does not have any significant impact on the Nigerian economy.

Hi:     Agricultural output has any significant impact on the Nigerian economy

 

1.6 Scope of Study

The study was limited within Nigeria; the scope is limited to a period between 1983 and 2015. The choice of this study period is based on the availability of data.

1.7. Significance of the Study 

          The study of impact of telecommunication on agriculture is relevant to government, agricultural sector and to academia.

          The findings and recommendation stated in this work will be vital guidelines to government in policy formulation that will enhance the outcome of the agricultural sector of Nigeria economy.

To agriculturalists especially rural farmers, this work provides a comprehensive knowledge of the essence of adopting modern technology in their agricultural activities, as it will help to boost their outputs.

This work serves as one of the contributing literature to ne use for lecturing and reference purposes in the higher institution of learning, and also this study will serve as a guideline to prospective researchers who will wish to develop similar work on this subject.

1.8   Operational Definition of Terms

  • Agricultural Extension: Agricultural extension is the application of scientific research and new knowledge to agricultural practices through farmer education. The field of 'extension' now encompasses a wider range of communication and learning activities organized for rural people by educators from different disciplines, including agriculture, agricultural marketing, health, and business studies.
  • Agriculture: Agriculture is the cultivation and breeding of animals, plants and fungi for food, fiber, biofuel, medicinal plants and other products used to sustain and enhance human life.
  • Telecommunication: Telecommunication is the transmission of signs, signals, messages, words, writings, images and sounds or intelligence of any nature by wire, radio, optical or other electromagnetic systems. Telecommunication occurs when the exchange of information between communication participants includes the use of technology.
  • ICT: It stands for "Information and Communication Technologies." ICT refers to technologies that provide access to information through telecommunications. It is similar to Information Technology (IT), but focuses primarily on communication technologies. This includes the Internet, wireless networks, cell phones, and other communication mediums.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In the 21st century agriculture is one of the divers industries which are increasing rural income as well as long term stability of its natural resources. This can create different activities which will affect farmers, stakeholder, customers and government industries. Information and communication technologies have most important information about agriculture in developing countries. These developing countries now are connected with developed nations and getting the latest information and technologies regarding weather, natural resources and other related information (Rao, 2010).

Addul, Barkatullah, Ghulam, and Shakil (2014) noted that most of the developing countries are using different technologies and other sources for the development of agriculture and economic development. The agricultural sector is constantly being developed to the fullest extent possible with available means as a whole can progress only by the efficient and rational use of them. According to Ogidi (2015), in any nation, the agricultural sector has a great importance attached to it. Hence, agriculture constitutes one of the most important sectors of the economy. The significance of agriculture resource in bringing about economic growth and sustainable development of a nation cannot be underestimated. Agriculture contributes to the growth of the economy, provides employment opportunities for the teaming population, export revenue earnings and eradicates poverty in the economy. Abayomi (2009) stated that stagnation in agriculture is the principal explanation for poor economic performance, while rising agricultural productivity has been the most important concomitant of successful industrialization.

Oji-Okoro (2011) is of the opinion that agriculture resource has been an important sector in the Nigerian economy in the past decades, and is still a major sector despite the oil boom; basically it provides employment opportunities for the teeming population, eradicates poverty and contributes to the growth of the economy. The pervasive influence of agriculture on Nigeria’s economic and social development has also been articulated by Oluwasami (2013). A strong and efficient agricultural sector would enable a country to feed its growing population, generate employment, earn foreign exchange and provide raw materials for industries. The agricultural sector has a multiplier effect on any nation’s socio-economic and industrial fabric because of the multifunctional nature of agriculture (Ogen 2007).

Agriculture has been defined as the production of food and livestock and the purposeful tendering of plants and animals, (Ahmed, 2013). He stated further that agriculture is the mainstay of many economies and it is fundamental to the socio-economic development of a nation because it is a major element and factor in national development. In the same view, Okolo (2004) described agricultural sector as the most important sector of the Nigeria economy which holds a lot of potentials for the future economic development of the nation as it had done in the past. Notwithstanding the enviable position of the oil sector in the Nigerian economy over the past three decades, the agricultural sector is arguably the most important sector of the economy. Agriculture’s contribution to the Gross Domestic product (GDP) has remained stable at between 30 and 42 percent, and employs 65 per cent, of the labour force in Nigeria (Emeka 2007).

Generally, the agriculture sector contributes to the development of an economy in four major ways-product contribution, factor contribution, market contribution and foreign exchange contribution (Abdullahi 2012; World Bank 2010). Therefore, base on the above background this study aims to examine the contribution of the agricultural sector to the development of Nigeria economy between 1983 and year 2015 using econometric technique.

1.2 STATEMENT OF THE PROBLEM

In the study of Manyong et al., (2015) they reported that inspite of Nigeria’s rich agricultural resource endowment, there has been a gradual decline in agriculture's contributions to the nation's economy. In the 1960s, agriculture accounted for 65-70% of total exports; it fell to about 40% in the 1970s, and crashed to less than 2% in the late 1990s. The decline in the agricultural sector was largely due to rise in crude oil revenue in the early 1970s. Less than 50% of the Nigeria’s cultivable agricultural land is under cultivation. Even then, smallholder and traditional farmers who use rudimentary production techniques, with resultant low yields, cultivate most of this land. The smallholder farmers are constrained by many problems including those of poor access to modern inputs and credit, poor infrastructure, inadequate access to markets, land and environmental degradation, and inadequate research and extension services. The inability to capture the financial services requirements of farmers and agribusiness owners who constitute about 70 percent of the population is inclusive (Lawal, 2011).

Low agricultural output has a negative effect on the Nigerian economy as a whole. Several factors have been identified to enhance or retard growth in the agricultural sector. These factors include education (Huffman 2009;; Weir 2012), infrastructure (Querioz and Gaultam 2012) and inflation (Gokal and Hanif 2014).

1.3 Research Question

  1. To what extent is technology relevant in increasing agriculture production in Nigeria?
  2. What are the contribution and general impacts of agricultural output on the Nigerian economy?

1.4 Objective of the Study

          The main objective of this study remains on the impact of agricultural sector to the development of Nigeria economy.  Other specific objectives include:

  1. To find out the relevance of technology in increasing agriculture production in Nigeria.
  2. To examine the impact of agricultural output on the Nigerian economy.

1.5 Research Hypothesis

Hypothesis one

Ho:     Technology has no relevance in increasing agriculture production in Nigeria.

Hi:     Technology has relevance in increasing agriculture production in Nigeria.

Hypothesis two

Ho:     Agricultural output does not have any significant impact on the Nigerian economy.

Hi:     Agricultural output has any significant impact on the Nigerian economy

 

1.6 Scope of Study

The study was limited within Nigeria; the scope is limited to a period between 1983 and 2015. The choice of this study period is based on the availability of data.

1.7. Significance of the Study 

          The study of impact of telecommunication on agriculture is relevant to government, agricultural sector and to academia.

          The findings and recommendation stated in this work will be vital guidelines to government in policy formulation that will enhance the outcome of the agricultural sector of Nigeria economy.

To agriculturalists especially rural farmers, this work provides a comprehensive knowledge of the essence of adopting modern technology in their agricultural activities, as it will help to boost their outputs.

This work serves as one of the contributing literature to ne use for lecturing and reference purposes in the higher institution of learning, and also this study will serve as a guideline to prospective researchers who will wish to develop similar work on this subject.

1.8   Operational Definition of Terms

  • Agricultural Extension: Agricultural extension is the application of scientific research and new knowledge to agricultural practices through farmer education. The field of 'extension' now encompasses a wider range of communication and learning activities organized for rural people by educators from different disciplines, including agriculture, agricultural marketing, health, and business studies.
  • Agriculture: Agriculture is the cultivation and breeding of animals, plants and fungi for food, fiber, biofuel, medicinal plants and other products used to sustain and enhance human life.
  • Telecommunication: Telecommunication is the transmission of signs, signals, messages, words, writings, images and sounds or intelligence of any nature by wire, radio, optical or other electromagnetic systems. Telecommunication occurs when the exchange of information between communication participants includes the use of technology.
  • ICT: It stands for "Information and Communication Technologies." ICT refers to technologies that provide access to information through telecommunications. It is similar to Information Technology (IT), but focuses primarily on communication technologies. This includes the Internet, wireless networks, cell phones, and other communication mediums.

 

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The Contribution Of The Agricultural Sector To The Development Of Nigeria Economy 1983 - 2015

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