THE IMPACT OF AGRICULTURAL DEVELOPMENT ON NIGERIAN ECONOMIC GROWTH

ABSTRACT

This study is on the impact of agriculture on economic development. The study made use of a total population of 200 staff of ministry of agriculture Benue state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made agriculturists, agronomists, administrative staff and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies. The study showed that Agriculture has a considerable impact on the growth of the economy. It was therefore recommended by the researcher that Farmers should be provided with the necessary support and other Private business people be encouraged to participate in agriculture by making the industry friendly to all.

 TABLE OF CONTENTS

1.0   INTRODUCTION 

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study

CHAPETR TWO

2.0   LITERATURE REVIEW

CHAPETR THREE

3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1 Introductions

4.2 Data analysis

CHAPTER FIVE

5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation

Appendix

 CHAPTER ONE

INTRODUCTION

• BACKGROUND OF THE STUDY

The term Agriculture has been subjected to different definitions by various experts.  As a result Ighodo (1984: 20) defined agriculture as the art and science of the cultivation of crops and rearing of animals for man’s use. He also emphasized that agriculture is also the production of fibres for industries, processing of farm produce, packaging and marketing of farm products.  This definition is quite embracing as it covers all activities that ensure man’s survival.  However, the aspect of research and training that is so vital in production was conspicuously missing in the definition.

In order to fill this gap, Ogwuma (1985: 5-8) defines agriculture as production of field crops, forestry, fishing and livestock, research and training of extension workers. Production is only complete when it gets to the final consumers. It is in response to this economic doctrine that Anyanwu (1987:102) defined agriculture as involving cultivation of land, raising and rearing of animals for the purpose of providing food for man, feed for animals and raw materials for industries.  It involves forestry, fishing, processing and marketing of these agricultural products. Komolafe (1985), Adegoye (1985) and Adubi (2000) defined agriculture as the cultivation of soil for crop production and of looking after animals to produce better meat and other food products and also a process by which farm products are sold.

Simon Kuznet (1973) defined economic growth as a long term rise in the capacity to supply increasingly diverse economic goods to its population. It entails a sustainable rise in national output which is a manifestation of economic growth. To Anyanwu (1997), the role of agriculture in transforming both the social and economic framework of an economy cannot be over-emphasized. In effect, it has been the main source of gainful employment from which the nation can feed its teeming population, providing the nation’s industries with local raw materials and as a reliable source of government revenue.

According to Adegoye and Dittah (1985), agricultural output can increase the level of income of farmers and the people.  They said what constitutes the level of agricultural output will vary with the stage of economic development of a country.

 

For a purely subsistence economy, agricultural development will occur but not like in a fully developed economy. If there is enough food for the people and a marketable surplus is produced, it will increase the income of the peasants. The increased income generated would so provide means for them to purchase other necessities of life, which they cannot produce themselves.  By this means, the standard of living of the peasants will improve and unemployment, underdevelopment will be reduced.

They stated that a fully developed economy, especially in agricultural sector, means increase in the production of export crops with an improvement in the quantity and grades of such export crops. For a country that has started to industrialize, agricultural output will be said to have acquired growth if agriculture can supply enough raw materials to the agro-allied industries.

Reynolds (1975: 215), revealed that agricultural development can promote the economic development by increasing the supply of food available for domestic consumption and releasing the labour needed for industrial employment. According to him, agricultural development can promote economic development of underdeveloped countries in four distinct ways:

1. i) By increasing the supply of food available for domestic consumption and releasing labour needed for industrial employment.
2. ii) By enlarging the size of the domestic market for the manufacturing sector.

iii) By increasing the supply of domestic savings and

1. iv) By providing foreign exchange earned by the agricultural exports. Omawale and Rodriguez (1975) opined that for most developing countries, agriculture has been assigned an important role in national development. To them, agriculture has been seen as a means of reducing dependence on certain importations, containing food price increases, earning foreign exchange, absorbing many new entrants to the labour market and increasing farm incomes at times of severe unemployment and rural poverty.

In some nation, agriculture sector is give priority because it provide raw material for the industrial sector, food and meat for the development of man, food and shelter are basic necessities for human consumption are both originated from farming activities. Whether one works in secondary or territory sector, without agriculture, the final output which we rely upon cannot be achieved. As regard to the importance, agriculture provides employment opportunities to the labour for through direct employment into agricultural and interrelated industrial and manufacturing sectors. For this, sector contribute efficiently, there is need for better decision making and implementation, good management and adoption of cost production techniques distributive channels, marketing, research for better pricing system, recognition of the availability of land including soil preservation and provision of storage facilities. Farm output becomes low because the system of farming still involves the use of simpler farm tools like cutlass and hoe on proper knowledge on how to apply chemicals to those crops. Capital investment is small and modern input like fertilizer and improved seeds are still not widely used by most of the farmers. As developed and industrialized countries like United State of America, Germany, Canada, etc agriculture still ranks high in their government privies. This is so because it provides them on alternative sources of foreign reserve, as well as internal, direct and indirect economic benefits derived from balanced terms of trades with other countries. Be that at it may, poor performance of the agriculture sector to provide adequate food for the growing population declining productivity of most exported crops which has contributed to substantial reduction in foreign exchange earnings and declining condition of agricultural products to gross domestic products in the real terms.

According to J. C. Anyanwu, A. Oyefusi, H. Oaikhenan and F. A. Dimowo (1997), the role of agriculture in transforming both the social and economic framework of an economy cannot be over-emphasized.  It is a source of food and raw materials for the industrial sector, it is also essential for expansion of employment opportunity, for reduction of poverty and improvement of income distribution, also for speeding up industrialization and easing the pressure on Balance of Payment. In effect, it has been the source of gainful employment from which the nation can feed its teeming population, providing the nation’s industries with local raw materials and as a reliable source of government revenue.

• STATEMENT OF THE PROBLEM

The provision of an equitable standard of living, adequate  food,  clean  water,  safe  shelter  and energy, a healthy and secured environment, an educated  public, and  satisfying  job for  this and future  generations,  is  one  of  the  major challenges  facing  mankind.  It  is  not  an overstatement  to  assert  that  the  growth  and development  of  any  nation  depend,  to  a  large extent, on the development of agriculture Reynolds (1975: 215), As a  roadmap  to  attaining  development,  the Millennium  Development  Goals  (MDGs)  was adopted  in  year  2000,  and  over  70%  of  the development  target group  in Africa  live in rural areas  and  are  dependent  on  agriculture  for  a living Dittah (1985). Invariably, reducing poverty, improving nutrition and general well-being of the population would  imply  improving  the  livelihood  of  this majority  and  this  hinges  critically  on  the performance of the agricultural sector. As argued by  advocates  of  agriculture-led  growth  (ALG), development  of  the  agricultural  sector  is  a prerequisite for industrialization through increase in rural incomes  and provision  of industrial raw materials,  provision  of  a  domestic  market  for industry and above all, the release of resources to  support  the  industry  Reynolds (1975: 215). The neglect  of  the agricultural  sector  in  favour  of  the  industrial sector will only lead to slow economic growth and inequality  in  income  distribution.

Dspite to the fact that agriculture plays an important role in the development of the economy of Benue state, some problems are still associated with the production of agriculture. The attitude of the farmer towards production of crops, little did they know about new technology of modern farming. Most farmers are still stick to their old ways as a result of the use of crude equipment in farming such as cutlass, thereby reducing the yield in production. Cultural consciousness had made some farmers to willing object to the use of farming technique because of some cultural belief that if the modern system is applied, the crops will not do well or the gods of the land will not be happy with them as such they restrict the production to a particular location, no need for expansion, this will lead to low productivity. The fact that most our farmers are low level income earners, they cannot invest on the purchase of machine that could have boost their production. Also most people are of the mind that agriculture is simply farming as a matter of fact, it is meant for the low level people, and this has made many of them deviate from the farming practice.

 

 

• OBJECTIVE OF THE STUDY

The major objectives of the study are:

1.  To identify the problems facing agriculture production in Benue state.
2.  To examine the role of agriculture in economic development of Benue state.
3.   To suggest possible solution to the problems that have emanated.
4.   To make appropriate recommendations to the farmers or modern use of farming techniques.

• RESEARCH HYPOTHESES

HYPOTHESES ONE

Ho: There is no relationship between agriculture and Nigerian Economic development

Hi: There is a relationship between agriculture and Nigerian Economic development

HYPOTHESES TWO

Ho: Agricultural sector is not properly funded by the government

Hi: Agricultural sector is properly funded by the government

 

1.5       SIGNIFICANCE OF THE STUDY

The role of agriculture is a sinequanon in the economic development of Benue state, as a matter of fact; the importance of agriculture will be enumerated. Agriculture provides the basic for requirement of the population. Man needs some essential nutrient for nourishment of the body growth. It also supplies many of the raw materials for industry for the manufacture of goods for the use of man. Agriculture provides income and employment for the majority of the population. Around ninety percent (90%) of the population of West African employed in agriculture in Nigeria, seventy (70) percent of the figure are slightly below the average for the whole west Africa but even in the country, the great majority of the population depend on agriculture for income and employment. Agriculture exports are of great importance in earning foreign exchange of the country that buys these product pay for them in their own currency. This money got as a result of exchange of agricultural goods can be used to purchase some vital goods like capital goods which help in the economic development of the nation or state.

1.6 SCOPE AND LIMITATION OF THE STUDY

This study is primarily concerned with the impact of Agricultural development on Nigerian Economic growth. This study/project work covers Benue state. The researcher encountered some constraints, which limited the scope of the study. These constraints include but are not limited to the following

1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

1.7 DEFINITION OF TERMS

AGRICULTURE: This may be defined as the cultivation of land and the production of food, plants and animals for man’s use and survival.

ECONOMIC DEVELOPMENT: Economic development is the process by which a nation improves the economic, political, and social well-being of its people. The term has been used frequently by economists, politicians, and others in the 20th and 21st centuries

 1.8 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concerned with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study

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