THE EFFECT OF COCOA FARMING ON THE ECONOMY OF NIGERIA

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THE EFFECT OF COCOA FARMING ON THE ECONOMY OF NIGERIA

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

Cocoa farming has really contributed to most of the agricultural sectors in Nigeria. As we all know; agriculture has done a lot in the time of old even when crude oil was not the major source of revenue in Nigeria. Agriculture has provided food for almost the entire population of Nigeria; is it employment? Farmers that operates on a larger scale tends to employ more labour.

Cocoa farming is a very vital part of agriculture as it provide food for the entire population of Nigeria, raw material for industry, it also serve as a source for foreign exchange in Nigeria.

Cocoa has really contributed to the economic development of Nigeria.

During the 50s when agriculture was the major source of income and economic development, the value of the Nigeria currency was very much appreciated and the standard of living was very much manageable. In Nigeria of today, virtually everybody is now running away from agriculture. Everybody is looking at the oil sector.

Nigeria is blessed with variety of agricultural products; cocoa is one of them. It does not seem to perish easily.

Cocoa can be largely supplied to every part of the country and its demand is on the high side.

Cocoa farmers are considered the wealthiest because the value of the product and the demand of such products.

1.2 STATEMENT OF PROBLEM

The economy of Nigeria is on the low side because of the drop in the price of oil and most of the Nigeria citizen has really abandoned agriculture. When crude oil was not much in supply in the early 50s agriculture was the major source of revenue for both the government and the citizens of Nigeria. Most of the people said that there is capital to set up a big farm. Some said no machinery and the government policy is not allowing them practice on a larger scale.

1.3 RESEARCH QUESTION

Does cocoa farming has any effect on the economic development of Nigeria?

Is there any way the government can help develop the practice of agriculture in Nigeria?

Does cocoa export have any effect on the gross domestic product of Nigeria?

Does the practice of agriculture help reduce unemployment in Nigeria?

1.4 RESEARCH HYPOTHESIS

H0: There is no significant effect of cocoa farming on the economic development of Nigeria.

H1: There is significant effect of cocoa farming on the economic development of Nigeria

H0: There is no mean difference in gender responses of the respondents that agriculture help to reduce unemployment in Nigeria.

H1: There is mean difference in gender responses of the respondents that agriculture help to reduce unemployment in Nigeria.

H0: Cocoa export has no significant effect on the gross domestic product of Nigeria.

H1: Cocoa export has significant effect on the gross domestic product of Nigeria.

1.5 AIM AND OBJECTIVE OF STUDY

To determine the effect of cocoa farming on the economic development of Nigeria

To investigate the effect of agriculture on the level of unemployment in Nigeria

To determine the effect of cocoa export on the gross domestic product of Nigeria.

To determine the impact of government policy on the development of agricultural practice in Nigeria.

1.6 SIGNIFICANCE OF STUDY

By the end of this research work, we shall be able to determine the impact of government policy on the development of agricultural practice in Nigeria. We shall also be able to determine the effect of cocoa on the gross domestic product of Nigeria and its effect on the economic development of Nigeria.

1.7 SCOPE OF STUDY

The primary data for the purpose of this study was obtained by the use of questionnaires and CBN statistical bulletin and the rest of the secondary data was obtained from wiki books, journals and other related articles.

1.8 DEFINITION OF TERMS

ECONOMY: is an area of the production, distribution or trade, and consumption of goods and services by different agents in a given geographical location

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