[PDF] Total Government Spending On Agriculture And Its Output Growth In Nigeria eBook

Author : Austin N. Nosike
Publisher :
Page : 14 pages
File Size : 15,56 MB
Release : 2020
Category :
ISBN :

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This study examined the relationship between government spending on agriculture and its output over the period 1970-2015 using Engle-Granger (1987) two step modeling (EGM) procedure involving: co-integration analysis and error correction of parameter estimates. Additionally, Granger causality test was carried out to determine the direction of causation between government spending on agriculture and agriculture sectors output. Based on the data analysis, it was discovered that Total government spending on agriculture (TGSA) has significant effect on agriculture output (AGDP) in the long and short-run.; this relationship is statistically significant in the long run and in the short run. Spending on agriculture sector has the capacity to increase its output by 10.7% if the allocation increases by 1% in the long run while in the short run, one percent increase in government expenditure on agriculture will bring about 10% increase in agriculture output. The study concludes that public expenditure is very crucial instruments for economic growth at the disposal of policy makers in Nigeria and government expenditure on agriculture is basically related to agricultural development and recommends that efforts should be made to increase government funding on agricultural sector and also compliment it with stable macroeconomic policies in order to curtail the level of food shortage and over-dependence on foreign food and as well increase funding on anti-graft or anti-corruption agencies like the Economic and Financial Crime Commission (EFCC), and the Independent Corrupt Practices Commission (ICPC) in order to arrest and penalize those who divert and embezzle public funds.

Author : Nwoko, Chinedum
Publisher : Intl Food Policy Res Inst
Page : 36 pages
File Size : 22,39 MB
Release : 2018-10-17
Category : Political Science
ISBN :

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This paper provides a broad view of public sector support to agriculture in Nigeria, through the lens of the allocation of public expenditures by the federal government in support of the sector. We consider the adequacy and stability of agricultural public spending during the period of 2007 to 2016, drawing on data from the Ministry of Finance, the Office of the Accountant General of the Federation, and other sources.

Author : Mavrotas, George
Publisher : Intl Food Policy Res Inst
Page : 23 pages
File Size : 38,56 MB
Release : 2018-12-10
Category : Political Science
ISBN :

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Building on the work of earlier studies that looked at trends in and returns to federal public expenditures on agriculture in Nigeria, this paper explores spending patterns at the sub-national state level over a nine-year period, as well as trends in agricultural and economic performance and indicators of household welfare. Our examination focuses on two groupings of states – the full 37 state units of Nigeria (the 36 states, plus the Federal Capital Territory, Abuja); and the seven states that are the focus in Nigeria of the Global Food Security Strategy (GFSS) of the United States Agency for International Development. Sub-national agricultural spending as a share of aggregate agricultural spending in Nigeria is large, given the stronger role for sub-national governments in agriculture than is the case in other sectors. However, we find that the share of state-level expenditures on agriculture as a share of aggregate state-level expenditures is still relatively low, an average of 3.86 percent over the period 2007 to 2015. While the prioritization of agriculture spending varies greatly year by year, the variation over time does not have a discernible long-run upwards or downwards trend. We also find that agricultural expenditures are more capital intensive than are overall public expenditures at state level, but that capital expenditures as a share of total agriculture spending has decline over the last decade, as is the case overall in Nigeria’s industrial sectors. We conclude that efforts to strengthen state-level agricultural spending in Nigeria merits greater attention, while putting in place measures to ensure improved effectiveness in any such spending.

Author : Takeshima, Hiroyuki
Publisher : Intl Food Policy Res Inst
Page : 35 pages
File Size : 39,50 MB
Release : 2020-07-29
Category : Political Science
ISBN :

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Agricultural development has long been considered an important driver of overall economic development in developing countries such as Nigeria. Whether increasing public expenditures on agriculture (PEA) can directly improve broad dimensions of household well-being has continued to be debated. In addition, there has been growing interest in the economic flexibility of households to switch between nonfarm and farming activities. Such flexibility can potentially enhance the resilience of households to shocks like the COVID-19 pandemic in today’s rapidly changing socioeconomic environments. Direct evidence of the impact of PEA on broad development outcomes is also important in informing regional initiatives aiming to use PEA as an instrument for overall food security enhancement and poverty reduction in Africa. Using state- and local government area (LGA)-level PEA figures and household data in Nigeria, this study aims to provide initial evidence at the household level in Nigeria. The findings suggest that greater PEA shares have positive effects on various development outcomes at the household level, including consumption, poverty reduction, nonfarm capital investments, and household dietary diversity. The findings also suggest that greater PEA shares are likely to help farm households enhance their economic flexibility. These findings are consistent with the hypotheses of positive linkages between PEA and agricultural outcomes, and linkages between agricultural and nonagricultural outcomes, often advocated in the literature. PEA should be increased by increasing its share of total public expenditures through conscious efforts to reallocate existing resources, rather than trying to increase it by increasing the overall size of public expenditures. Furthermore, it remains important to identify the appropriate sources (for example, spending by LGA or state) and types of PEA (for example, recurrent or capital spending) for particular development outcomes.

Author : Mogues, Tewodaj
Publisher : Intl Food Policy Res Inst
Page : 27 pages
File Size : 48,86 MB
Release : 2016-12-02
Category : Political Science
ISBN :

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This paper makes a contribution to this literature by drawing on the framework of actor-centered institutionalism (Scharpf 1997) to empirically examine how political and budget institutions affect the incentives of actors involved in the public agricultural finance process, structures the interactions between them, and ultimately shapes expenditure allocations

Author : Sunday C. Nwite
Publisher :
Page : 12 pages
File Size : 40,69 MB
Release : 2019
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ISBN :

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Government expenditures play key roles in the operation of all economies. It refers to expenses incurred by the government for the maintenance of itself and provision of public goods, services, and works needed to foster or promote economic growth and improve the welfare of people in the society. This study examined the effect of fiscal policy on real sector growth in Nigeria. Focusing on government capital expenditure and its effect on the growth of the agricultural sector in Nigeria. The study adopted the ex-post facto research design and regression analysis as methodology using ARDL. Descriptive statistics and graphs were also used to complement the regression result. The result from the study found that there is a significant and positive effect of government capital expenditure on the growth of the agricultural sector in Nigeria. The implication of the study is that fiscal policy through government capital expenditure will increase the agricultural sector growth and thereby increases its contributions to the growth of the economy. This means that when there is enough revenue, the government only spends more money on infrastructural development that can help the agriculture sectors to grow by having access to good road and electricity. The result is an indication that government capital spending in Nigeria has been able to spur the economic growth of Nigeria through agricultural sector output. Based on the findings, the study makes the following recommendations; Government of Nigeria should adhere strictly to the implementation of government spending so as to increase the level of real sector development in Nigeria which will have the capacity to stimulate economic growth and create employment.

Author : Ibrahim Arala
Publisher :
Page : 94 pages
File Size : 19,65 MB
Release : 2020
Category : Agricultural productivity
ISBN :

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Previous studies have shown a significant and positive relationship between agricultural output and long run economic development. Nigeria, with current extreme poverty rate of 48% is also characterized with high level of food insecurity. The country however, has about 99 million ha of arable land which supports numerous farming activities. Therefore, there exist an opportunity to increase agricultural output and achieve economic development. Further studies also showed that the percentage of agricultural loans to total loans in Nigeria have been declining over the last 15 years which suggests some form of neglect of the sector. This paper therefore examined the impact of agricultural loans and other relevant variables on agricultural GDP in Nigeria with a view to estimate a regression model that can explain variability in agricultural GDP. All the data used were secondary data collected from the annual statistical bulletin of the Central Bank of Nigeria (2018) and USDA, Economic Research Service (Nov. 2019). Ordinary Least Square regression model was used to estimate regression parameters and to show relationship between the variables. Analyzed results showed that agricultural GDP in Nigeria is statistically dependent on agricultural loan, government expenditure and available farm land. The result was statistically tested to be significant at >=95% level of confidence. Further results also showed that agricultural loan in Nigeria is statistically dependent on agricultural credit guarantee and Non-performing loan ratio. This was also tested to be significant at >=95% level of confidence. The study recommended that the results calls for more allocation of credit for agricultural purposes, more government spending to agriculture and more funding of the agricultural credit guarantee program by the government.