An Investigation of the Long-Run Nexus between Government Agricultural Expenditure and Agricultural Output in Nigeria

Abstract:

Agriculture has contributed immensely to the growth and development of the Nigeria economy over the past four decades. Notwithstanding the emergence of oil boom that have resulted to high level of oil export and revenue generation for the country, agriculture still provides a opportunities for employment, provision of food, shelter and income to a great proportion of the Nigerian populace today.

Support for agricultural in Nigeria has suffered a serious setback over the years due to negligence of the sector and focusing on the oil sector as the major source of revenue in the economy. Practice of Agriculture have predominantly carried out by small holders’ farming at subsistence level. This has consequently retarded agricultural production and commercialisation of the sector. Agricultural activities are mostly executed by peasant farmers in the rural areas whose households invariably constitute the agricultural labour force Apata Folayan, Apata and Akinlua (2011) also observed that substantial proportion of agricultural production in Nigeria come from the subsistence units. In most cases the rural farmers possess little or no adequate educational skill on the global farm practices. This further affects the quality and quantity of agricultural products which are mostly consumed locally. Lawal (2011 observed that these small scale farmers are mostly limited by many challenges such as poor access to modernised inputs and credit facilities, limited access to market and infrastructure, degradation associated with land and environment, inadequacy of research and agricultural extension services. Also the financial services required by the farmers and agro-allied business entrepreneurs have not been adequately taken into consideration. Given this scenario, the place of government spending in support of the development of the agricultural sector in Nigeria cannot be over emphasised.