AGRICULTURAL OUTPUT-FOOD PRICE NEXUS AND HOUSEHOLDS’ WELFARE IN NIGERIA

Abstract

This paper evaluates agricultural output-food price nexus and the welfare of households in Nigeria. The study is essentially secondary data based and utilized the Autogressive Distributed Lags (ARDL) approach for its analysis. Findings revealed that agricultural output had no significant impact on households’ welfare in Nigeria. It was also shown that government spending on agriculture was unable to significantly boost food production and hence food security in Nigeria during the time under reference. This portends grave concerns for the future, and in light of this, the government should reassess its current insignificant allocation to the sector. The study also recommends that government should provide funding to enhance technology in food production through the acquisition of sophisticated farm tools (harvesters, tractors, herbicides, and fertilizer) and the construction of irrigation /storage facilities, as well as the establishment of food processing industries throughout the country, in order to enable farmers to increase productivity, leading to reduced food prices and enhanced welfare for the citizenry.