Agricultural Productivity and Poverty Reduction in Nigeria (2000-2016)

Abstract

The study examined the effects of agricultural productivity on poverty (and hunger) reduction in Nigeria within the temporal scope of 2000 - 2016. Secondary data were sourced from Central Bank of Nigeria (CBN) statistical bulletins and World Bank Development Indicators. On the anchor of resource use efficiency theory, the study employed Agriculture Budget Allocation (AGRBA), Commercial Banks Credit to Agriculture (CBCA), Micro Finance Banks Credit to Agriculture (MFBCA) and Food Production Index (FPI) to proxy agricultural productivity, and Human Development Index (HDI) was used to proxy poverty and hunger. Data were estimated using Johansen co-integration test and regression analysis. It was found that, long-run relationship exists between agricultural productivity and poverty reduction in Nigeria. It was also found that, agriculture budget allocation and commercial banks credit to agriculture did not translate to poverty and hunger reduction in Nigeria, but both microfinance banks credit to agriculture and food production index contributed to poverty and hunger reduction in Nigeria. It was therefore recommended that, government should increase agricultural sector budgetary allocation, and this should be attributed to encouraging unemployed youths and unskilled labour in the country to embrace agribusiness so as to increase agricultural productivity in Nigeria. This should be monitored to ensure that they are not diverted to other sectors, and are used for the purposes for which they are meant, so that the funds will not end up in the hands of greedy people within the sector. Not only that, regulatory authorities of the Nigerian banking sub-sector should ensure that, commercial banks credit to agricultural sector get to the right targets within the purview of sectorial credit portfolio.