Abstract:

This paper examines the long run relationship between Agriculture and Economic Growth in Nigeria for the period 1981 to 2014 using time series data. Results from Johansen maximum likelihood co integration approach and Vector error correction model support evidence of long run relationship between Agricultural output and Economic growth in Nigeria. Granger causality test also confirm the cointegration results indicating there exist causality between agricultural output and economic growth in Nigeria. The nature of the causality however depends on the variable used to measure Agriculture. The results therefore recommend that government should further strengthen agricultural policies in the area of funding, storage facilities, and market access to enhance agricultural production. Policy Strategies that will make agriculture more profitable and attractive, less laborious with improved technology should be adopted and promoted to attract investors and the youths back to agriculture.