1.0 CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Nigeria's diverse agro-ecological circumstances have made it feasible to produce numerous types of agriculture. Nigeria is rich in natural resources that are good for agricultural production (Acha 2018).

Since the early 1960s, when agriculture was regarded as the primary pillar for growth and development, Nigeria's economy has thrived. The agricultural sector continues to be the main beneficiary in low- and middle-income countries (emerging countries), as it serves as a source of inputs, food products, employment opportunities, natural resources for other industries, a source of foreign exchange from the exportation of agricultural products, and a beneficiary of the value added in the various production processes (Adewuyi &Olowookere 2018).

Given how much agriculture contributes to most African economies, the strategy for promoting and accelerating the early phases of economic growth cannot ignore or marginalise all aspects of agriculture (Akingunola et al. 2016). Prior to the 1950s and 1960s oil boom, the agricultural sector made up over 63 and 54 percent of Nigeria's Real Gross Domestic Product, respectively. However, Nigeria recorded a decrease in agriculture's share contribution to RGDP between 1970 and 1980 that ranged between 29.2 percent and 33.3 percent as a result of the discovery of oil (Aigbokhan, 2011).

One of the main desires of every poor country is thought to be the process of economic growth and development. And that of Nigeria is impacted by agriculture due to the production of food and fibre for domestic consumption, the provision of human labour to the industrial sector, the generation of exchange rates through the export of agricultural products, the increase in domestic saving, and the purchasing power of the rural population (Akpansung &Babalola 2016).

Government at various levels has over many years initiated and carried out several policies and programmes aimed at restoring agriculture to its true role in the economy due to the unstable character and performance of the industry in the nation. However, information from empirical literatures suggests that there has not yet been a breakthrough because of numerous issues affecting the sector's performance (Kalu 2019). It is to this the study centers on The Effect Of Agricultural Development In Economic Growth Of Nigeria 1990-2021

1.2 Statement of the Problem

Nigeria has abundant resources for agricultural use, as well as a large amount of land that may be used for growing crops and animal grazing. The exportation of agricultural goods including rubber, cocoa, groundnuts, palm oil, hides and skins, etc. made Nigeria's agricultural industry well-known. The sector offers enormous potential for Nigeria's economic development.

The challenges the agriculture industry faces have caused it to contribute less to the Nigerian economy. This has enabled the Nigerian government to develop numerous policies and programmes to raise agricultural output in the country. Despite Nigeria's vast areas of rich soil, many of its population struggle with famine and poverty as a result of agriculture being neglected.

Many current industries are heavily dependent on imported raw materials for their production processes, and many young people are still jobless after they graduate from school (Lang 2017).

Between 1940 and 1950, Nigeria was one of the top producers and exporters of a number of important agricultural goods. This has drastically changed in recent years because Nigeria's economy now depends heavily on the proceeds from oil exports. Overdependence on crude oil has hampered Nigeria's economic expansion and development as well as market forces (Mbat 2018).

To achieve effective and lasting economic growth and development in Nigeria, we need to consider entering the market in western nations with agricultural products other than crude (Mohd 2018).

Utilizing Nigeria's agricultural resource effectively will aid in economic diversification and lessen the country's dependency on the oil industry and imports. Nigeria's economy has been erratic because of the fluctuating price of oil and the ongoing increase in import costs. All these issues negatively affect Nigeria's balance of payments, employment rate, productivity in other industries, and people's purchasing power (Oyinbo, et. al. 2014). This study seeks to answer theEffect Of Agricultural Development In Economic Growth Of Nigeria 1990-2021

1.3 Objectives of the study

The aim of this research work is to assess The Effect Of Agricultural Development In Economic Growth Of Nigeria 1990-2021. The specific objective of this research work includes the following

1)  To examine if there is a significant impact of agricultural output on gross domestic product of Nigeria from 1990-2021

2) To examine if there significant relationship between agricultural expenditure and Nigerian Total revenue from 1990-2021

1.4 Hypotheses

Hypothesis 1

H0: There is no significant impact of agricultural output on gross domestic product of Nigeria

H1: There is a significant impact of agricultural output on gross domestic product of Nigeria

Hypothesis 2

H0: There is no significant relationship between agricultural expenditure and Nigerian Total revenue

H1:There is a significant relationship between agricultural expenditure and Nigerian Total revenue

1.5 SIGNIFICANCE OF THE STUDY

The significance of this research originates from the role of agriculture in the economy. Since a greater part of the population is employed in farming, the economic development is practically difficult to accomplish without building up this sector. Research on this issue is, therefore, essential to help policy decisions with regard to allocation of public expenditure. This research will also provide information to future researchers on matters concerning the relationship between government agricultural expenditure and economic growth. The study will assist in disclosing the factors hindering the effective implementation of government policies and programmes on agriculture and will make practical suggestions towards ensuring the achievement of goals of such agricultural policies and programmes. This is important because it is only through feasible agricultural policies that the government can restore the agricultural sector and ensure its target goals and objectives in national development. Furthermore, this research has the potential of not just developing the agricultural sector, but a whole lot of other issues Nigeria is facing – unemployment, low standard of living, rekindle the bond between agricultural sector and other sectors through supply of raw materials, balance of payment deficit. With more people engaged in agricultural activities, unemployment rates will reduce and subsequently improve the standard of living of the economy. Also, agricultural output can serve as a source of raw materials for the manufacturing sector. It could be cotton, timber/wood, fur, wool, hides and skin, etc.

1.6 Scope of the Study

The study will focus on the Effect of Agricultural Development in Economic Growth of Nigeria 1990-2021

1.7 Organization Of The Study

The present report is study into five chapters. First chapter gives background to the study, statement of problem, objectives of the study, research questions, research hypothesis, and significance of the study, scope of the study and organization of the study

Second chapter deals with relevant studies found in the literature and that are related to the study i.e. review of literature.

Third chapter deals with the methodology and procedure used in this study, Fourth chapter deals with the analysis of data and presentation of the study which evaluates the data collected keeping in mind the set objectives. Fifth chapter deals with conclusions and suggestions which are derived from this study and finally an appendix at the end