CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

Nigeria has been endowed with abundant human and material resources. Yet, imports bills for good and agricultural raw materials have been on the increase over the years.

Prior to political independence and immediately after the country got its independence, it was not only sufficient in food production and agricultural raw materials, but was generally having surplus for export.

Statistics from the Central Bank of Nigeria indicates that the agricultural sectors share of the gross domestic product G.D.P was as high as 65 percent in the sixties but has been on the decline since then. In 1973, it contributed 31 percent, while only 23 percent in the 1990s At the same time, food importation has been on the increase.