An Empirical Analysis of the effect of Agricultural Input on Agricultural Productivity in Nigeria

Abstract

The main object of this study is to investigate the effect of Agricultural input on Agricultural productivity in Nigeria from 1990 to 2016 using secondary annual time series data sourced from World Bank database (2016) and Central Bank of Nigeria Statistical Bulletin (2016). The methodology adopted for the study was fi rst and foremost unit root test by Augmented Dickey-Fuller (ADF) approach; a test for long-run relationship (Johansen cointegration), Granger causality test and then the Ordinary Least Squares (OLS) multiple regression method. Variables in the model were both stationary as well as exhibited long-run equilibrium relationship. Empirical OLS regression result revealed an inverse relationship between government expenditure and agricultural output. Deriving from the fi ndings, the study recommended the following for policy implementation: The Nigerian government should put in place policies and modalities that will encourage existing banks (both commercial and agricultural banks) to make credit facilities readily available to farmers with personnel assigned to monitor and ensure that such funds are judiciously used for the purpose which it is taken; Government must provide funds to acquire sophisticated farm tools (harvesters, tractors, herbicides, fertilizer etc.) and as well build irrigation, dams, storage facilities and establish food processing industries across the country to enable farmers increase productivity, process and preserve their food stuff; Finally, government spending on agricultural sector must of a necessity be increased. The present lackluster and uninspiring attitude of government to management of appropriated funds must change. Corrupt civil servants, contractors and bureaucrats who divert and misappropriate allocated funds for the growth of the sector must be punished to serve as a deterrent to other intending treasury looters. The various fi nancial crimes commissions such as EFCC and ICPC should be strengthen to do this.