GOVERNMENT EXPENDITURE AND AGRICULTURAL PRODUCTION IN NIGERIA (1970- 2010)
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GOVERNMENT
EXPENDITURE AND AGRICULTURAL PRODUCTION IN NIGERIA (1970 – 2010)
The
socio-economic development of any nation is usually dependent on many factors,
which combine to ensure the successful attainment of set development
goals. One of such factors is
agriculture. Its discovery dates back
to 800 BC period regarded as the new Stone Age, when man began to till soil and
grow crops using crude implements made out of stone (Anderson, 1995). According to Maslow, 1954, food is one of the
physiological needs of man, which must be satisfied before other needs could be
attained. Supporting Maslow’s
assertion, Morgan and Henson (1085) argue that agriculture will remain an
indispensable factor until the end of human existence.
The
importance of agriculture in the socio-economic development of every nation has
made many countries of the world (i.e. developed and developing) to place more
emphasis on its development. This is
evident in the number of programmes that have been introduced by both
international agencies and individual countries to ensure improvement in
agricultural activities. In Nigeria for
instance, successive governments have introduced and implemented programmes in
this regard. Such programmes include
Operation Feed the Nation (O.F.N.), Agricultural Research Policy, Agricultural
Development Project, Agricultural Credit Government Scheme, The Green
Revolution, River Basin Development Authorities (RBDA), National Agriculture
Land Development, Nigeria Agricultural and Co-operative Bank (NACB), The
Structural Adjustment Programme (SAP), Directorate of Food, Roads and rural
Infrastructure (DFRRI), (Anyanwu, 1960-1997).Â
It is however, disheartening that despite the laudable nature of these
programmes and the huge financial resource expended on them, their impact on
the economy remains as infinitesimal.
However, the
problem, which the Nigeria agricultural sector suffers till date, could be
traced to the discovery of crude oil.Â
The discovery of crude oil deposit in various parts of the country in
commercial quantities in mid 1960’s coupled with the oil boom of 1974 as a
result of the America, affected adversely the agricultural sector. The economy therefore, became heavily
dependent on oil. For instance, oil
sector provides 20% of GDP, 95% of foreign exchange earnings, about 85% of
total export and 65% of budgetary revenue (Anyanwu, 1997).
Agricultural
contributions to the economy were instrumental in sustaining economic growth
and stability, stable growth in agricultural exports was the backbone of
favourable balance of trade. Primary
processing of raw materials from the agricultural sector hence helped in the
sectors through the imposition of taxes and accumulation of marketing
surpluses, which were used to finance many development project.
Agricultural
sector notwithstanding is more else degenerating to a type of peasant
agriculture, which is caught in vicious cycle of poverty where destination
caused by low income, and disguised employment lends to poor saving and little
investment in technology. This
therefore, calls for the attention of the government for the development of the
sector. The development of agricultural
sector is one of the crucial requirement for moving the economy forward. This study therefore, tends to investigate
government expenditure on agricultural production in Nigeria and how to
increase its productivity and role in the economy.
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