Full Project – The impact of agricultural production on economic growth in Nigeria

Full Project – The impact of agricultural production on economic growth in Nigeria

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1.1       Background to the study

The agriculture sector is a main sector of Nigerian economy. It plays a fundamental role from diverse points of view like, share in GDP, employment and foreign exchange earning etc. The expansion in agriculture sector is necessary because it is a significant sector of the economy, which provides the basic ingredients to its population. (Adejumo. 2011).

Agriculture income has also fashioned demand for industrialized goods. Not only that it also contributes raw materials for manufacturing goods and provides market for manufactured products. Not only does the agriculture sector provide food to consumers and fibers to domestic industries, it also is a source of sparse foreign exchange earnings and offers a market for industrial goods. In the same way, increasing Agricultural development or productivity is one of the hugest determinants of financial development and neediness decay. A raise in Agrarian development gives undeviating sway on rustic salary, raising country wages and prosperity. This expansion in country pay raises the general interest for products and ventures in the economy (Anthony, 2016). Development in crops likewise gives nourishment security to the economy, enabling it to focus on the development of different parts. Not just that Horticultural development gives increase to trades which helps unfaltering the Conversion scale of the nation. In this way, accomplishing Horticultural development is basic and it tends to be attained with an expansion in the utilization of sources of info and expanding the efficiency.

Agribusiness is comprised of ranger service, animals, angling, nourishment and money crops creation, for example, cassava, yam, cocoa, maize, groundnut and oil palm in Nigeria. The nation is fundamentally talented with characteristic assets that are basic for the improvement of agribusiness; such assets incorporate ample land supply, human and ranger service assets. Has an absolute land zone of about 98.3 million hectares out of which 71.2 million hectares (72.4%) are cultivable however just 34.2 million hectares (34.8%) are under use (Olujenyo, 2016). Nigeria likewise has 68 million hectares of arable land; crisp water assets covering around 12 million hectares, 960 kilometers of coastline and an environmental decent variety which empowers the nation to create a wide assortment of yields and animals, ranger service and fisheries items (Arokoyo, 2012).

There is no increase saying that farming assumes a noteworthy job in the development and advancement process. Thought of the truth that the part assumes the job of a lifestyle in the creating nations like Nigeria and the way that this division of the economy, as significant it seems to be, has not been in receipt of satisfactory consideration by Government authorities, political office holders and approach creators to the degree that there is a lot of dependence on the non-inexhaustible unrefined petroleum. Regardless of Nigeria’s rich farming asset gift, there has been a moderate decrease in agribusiness’ commitments to the country’s economy (Manyong et al., 2015). During the 1960s, agribusiness represented 65-70% of all out fares; it tumbled to about 40% during the 1970s, and gone down to under 2% in the late 1990s. Accessible insights from CBN (2015) unambiguously demonstrated that horticulture, which is the second greatest division after oil, tumbled from 48 percent of Gross domestic product in 1970 to 20.6 percent in 1980 and was just 23.3 percent of Gross domestic product in 2005. It anyway kept on fluctuating between 38 percent and 41.2 percent somewhere in the range of 2009 and 2015.The decrease in the horticultural part was on a very basic level because of ascend in unrefined petroleum income in the mid-1970s. Under half of the Nigeria’s cultivable farming area is under development. And still, after all that, smallholder and customary ranchers who utilize undeveloped generation strategies, with noteworthy low yields, develop the vast majority of this land. The smallholder ranchers are compelled by numerous indecencies including those of poor access to present day data sources and credit, poor foundation, poor access to business sectors, land and natural debasement, and inadequate research and expansion administrations. The inability to catch the money related administrations prerequisites of ranchers and agribusiness proprietors who comprise around 70 percent of the populace is comprehensive (Lawal, 2011).

Short farming yield pessimistically affects the Nigerian economy overall. A few factors have been distinguished to improve or prevent development in the farming area. These variables incorporate training, money, framework and expansion (Hanif, 2014).Therefore, improvement and feasible advancement in horticulture division is essential for monetary development to happen on the grounds that it is a critical and huger part of the economy.

1.2       Statement of the Problem

Disregarding Nigeria’s wealthy farming and asset gift, just as the pre and post oil blast encounters it has seen, the Nigerian agrarian division has neglected to bloom as anticipated to. Under half of the nation’s cultivable farming area is under development (Agbenyour 2014). With farming utilizing 66% of the entire work power of the country; it has not had the option to achieve independence in nourishment generation because of absence of robotization and the little scale nature of creation. And still, at the end of the day, little holder and conventional ranchers who utilize obsolete devices and agrarian strategies witness low yields on these grounds. The subsistence ranchers have looked with different issues influencing their profitability some of which are: absence of access to credit offices, lacking infrastructural offices, etc (Philip, et al 2016)

As a result of low yields, the nation is among nations in Sub Saharan Africa that encounters huge nourishment deficiencies as over 40% of the nation’s populace is assessed to be nourishment uncertain. The nourishment deficiency issue is pinpointing of the high nourishment import charges, steady ascent in residential nourishment value, high yearly development paces of nourishment request when contrasted and nourishment supply and wholesome issues among others. The issue of nourishment deficiencies and instability is exacerbated when we consider the reality that nourishment creation in Nigeria is in the hands of little scale ranchers who practice blended editing framework and develop between 1-2 hectares of homestead land which are typically sprinkled over a wide territory. Moreover, the profitability of these ranchers is regularly influenced by variables, for example, age, editing designs, long stretches of cultivating experience, and absence of access to credit which will in general effect contrarily on profitability and effectiveness (Tasie, Oluyemisi et al; 2013). As indicated by FACU, notwithstanding all human and material assets focused on Nigerian horticulture, the beneficial productivity of ranchers for most harvests still fall beneath 60%. The wastefulness issue is credited to components, for example, utilization of low information advances, absence of data of high information innovations and poor homestead the board abilities, poor expansion administrations, inaccessibility and significant expense of sources of info. Past considers on proficiency of asset use and profitability demonstrated that there are wide varieties in the degrees of profitability and gainful effectiveness for the key nourishment crops, and the levels are inaccessible from the most positive. This shows consequently that bounty openings exist for the ranchers to build their profitability and beneficial productivity.





1.3       Research Questions

The questions that arise from above are:

  1. Is there any effort of agriculture on economic growth of Nigeria?
  2. Are there other determinants of economic growth other than agricultural output?
  3. Is there any causality between agricultural output and economic growth in Nigeria?

1.4       Objectives of the Study

The main aim of this study is to examine the impact of agricultural production on the growth of Nigerian economy. Other specific objectives are to:

  1. To determine the effect of poultry and livestock farming on the growth of Nigerian economy.
  2. To examine other determinants of economic growth as to poultry and livestock.
  3. To determine the causality between poultry and livestock farming and economic growth in Nigeria.

1.5       Statement of Hypothesis

For the purpose of this study, the research hypothesis to analyze the impact of agricultural productions on the Nigerian economy. A null hypothesis (H0) and alternative hypothesis (H1) are formulated as stated below:

H0:   There are no other determinants of economic growth other than Agricultural output in the Nigerian economy.

H1: There are other determinants of economic growth other than Agricultural output in the Nigerian economy.



1.6       Significance of the Study

This examination has scholarly, arrangement and practical ramifications. It is prophesized that the discoveries will be of extraordinary criticalness to various gatherings of individuals comprising of future scientists, the administration, and other agrarian firms.

The investigation will be strong for future specialists in increasing optional information and would fill in as writing audit for potential references. It will likewise fill in as a center plan to different understudies energetic to chase examine in a comparable field. Furthermore, the examination will help the administration in settling on arrangement choices in the nation, for example, valuable endowment distributions, expansion administrations and the board in the rural part.

The examination would be of gigantic bit of leeway to various individuals. These incorporate scholastics who are captivated in advancing their insight into horticultural financing and farming part profitability as the outcomes to be acquired are equipped for adding new knowledge to the current situation with information in the field and may consequently be discovered helpful for instructing and for building up an assortment of monetary hypothesis. Similarly critical is the way that this examination would likewise be of immense increase to rehearsing administrators in the field of automated cultivating who may be happy to think about the estimation of the investigation in overseeing and reinforcing their own farming firms.

This examination is huge considering the huge consideration given to rural improvement in Nigeria particularly in the dispensing of assets. It will subsequently inspect the proficiency and adequacy of the rural generation process in connection to monetary development so as to cut wastages and right insufficiencies in the conveyance of these homestead produce to accomplish best outcomes.

It had been test, in any case, that solitary scarcely any examinations have been done here, and it is trusted that this work will include towards agrarian advancement writing in Nigeria on horticultural improvement ventures.

1.7       Scope and Limitation of the Study

This examination is limited to the effect of agrarian division creation on financial development in Nigeria somewhere in the range of 1986 and 2016. The plausibility of experiencing multifaceted nature during the time spent information assortment and the probability of getting questionable reports on a demanding truth from the organizations included can’t be precluded. The limitation in one manner or the other in completing this examination work. Another acceptable confinement was as far as possible given for the culmination of this work and monetary limitations also.

1.8       Organization of the Study

This work is composed into five parts. Part one which is the presentation begun by giving a foundation of the topic, the issues and targets pursue. These are trailed by speculations, method of reasoning and extent of the examination just as the association of the parts. Part two shows related written works concerning writing, hypothetical, and exact writing. Part three confined the examination strategy, which comprise of the wellsprings of information, model detail and techniques for information investigation, while the outcomes and dialog are open in section four. Part five contains the synopsis, ends and proposals of the examination. They are trailed by references.

1.9       Definition of the Terms

  • Horticulture: this is the science or practice of cultivating or dealing with the development of yields and domesticated animals for human use. It incorporates the development of the dirt, developing and gathering of harvests, reproducing and raising of animals for sustenance of monetary increase.
  • Horticultural Preparations: the measure and handling of farming produce during the bookkeeping time frame accessible for utilization.
  • Monetary Development: As indicated by Todaro (1977), this alludes to the raise additional time of an economy’s ability to create products and enterprises expected to propel the prosperity of the residents in expanding numbers and assorted variety. It is the fair procedure by which the gainful limit of the economy is expanded additional time to realize rising degrees of national salary (Anyanwu J.C; 1995).
  • Gross domestic product: Total national output is the market total estimation of all the last merchandise and ventures from a nation in a given year.
  • Effect: strongly affecting something.
  • Broadening: To build up a more extensive scope of items, part, aptitudes and so forth so as to be increasingly fruitful or lessen hazard. To roll out an improvement, that there ought to be more prominent profitability and assortment.
  • Oil blast: this is a blast in the oil delivering division of an economy.
  • Income: The cash that an administration gets from charges or that an association gets structure its business.
  • Moving Development: It is a farming framework wherein plots of land are developed incidentally, at that point surrendered and permitted to return to their regular vegetation while the cultivator moves to another plot.
  • Subsistence Agribusiness: It is a self – adequate cultivating in which the ranchers center on developing enough nourishment to encourage themselves and their families.
  • Business: The circumstance wherein individuals have occupations/work so as to gain a living. The condition of being utilized.
  • Cobb-Douglas Generation Capacity: This creation work depends on the investigation of the American assembling businesses made by Paul H. Douglas and C.W.Cobb. It is a direct homogenous generation capacity of degree one which considers two data sources, work and capital for the whole yield of the assembling business (M.L; Jhingan 2003).


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Full Project – The impact of agricultural production on economic growth in Nigeria