Abstract:

The agricultural sector is very important to most countries where the government is expected to incentivise the process as also is Nigeria. The objective of the study was to investigate the impact of the public sector expenditure on the sector. The variables adopted for the study were agricultural output. Gross fixed capital formation labor force, and others. The techniques of estimations included testing for co-integration and error correction models and granger causality approaches which produced results among which show clearly that the expenditure of the government in the sector does not power output. It also shows that the financing polices were not well directed and not meeting targets. The paper recommends that proper channelling of the resources should be undertaken as well as investment in infrastructures to improve output of the sector and thereby the total economy.