Abstract
Since the discovery of oil, there has been a drastic decline in agricultural exports as percentage of total exports declined from about 43% to slightly over 7% between 1970 and 1974, as a result of the oil price shocks of 1973 – 1974 which resulted in large receipts of foreign exchange earnings by Nigeria and the neglect of agriculture. There have been series of declines in agricultural export since the mid-1970s at an average annual decline rate of 17 percent and by 1996, agricultural export accounted for only 2 percent of total exports, hence, making Nigeria net importer of basic food stuff. With this continual decline, the agricultural sector no longer earns enough foreign exchange through exports. Hence, this study investigates implications of agricultural seed financing on increased productivity output and export earnings in Nigeria. The choice of research design employed in this study is the archival and documentary research strategy, associated with the deductive approach, which involved secondary data collection. The population comprised 16 years data on total annual financial expenditure on agricultural seed improvement, agricultural productivity output and export earnings from 2000 to 2015 (16 years). Secondary data on cumulative annual expenditure on seed financing (SIF), Agricultural productivity (AP) indicator and export earnings (EE) were employed. The findings revealed that, findings revealed that Seed improvement financing has a significant impact on increased Agricultural production output and that there is a significant relationship between Agricultural production output and increased export earnings in Nigeria. The study therefore recommended that, there is need for the government to increase funding for agricultural research and also access international grants, as this will help increase variety of high yield seeds and subsequently increase agricultural production output, which will increase agro related export earnings in Nigeria.
Highlights
The R2 (R-square) value of 0.9883 shows that the model have a very good fit. It showed that about 98.83 percent of the variation in Agricultural production output is explained by Seed improvement financing, while the remaining 1.17 percentage unaccounted variation is captured by the error term
The R2 (R-square) value of 0.8447 shows that the model have a very good fit. It showed that about 84.47 percent of the variation in Agricultural production output is explained by export earnings in Nigeria, while the remaining 15.53 percentage unaccounted variation is captured by the error term
If the Probability Value (PV) is less than 5% or 0.05, it implies that the regressor in question is statistically significant at 5% level; otherwise, it is not significant at that level
Summary
Though the contribution of the sector to the Nigerian economy has been described as enormous in terms of supply of adequate raw materials to a growing industrial sector (Okumadawa, 1997); a major source of employment generation, foreign exchange earnings; provision of a market for the products of the industrial sector (World Bank, 1998); and provision of food for the increasing population (Food Agricultural Organization, 2006); agricultural production in Nigeria is progressively on the decline in terms of its annual contribution to the Gross Domestic Product
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