Budgetary Allocations to the Agricultural Sector in Nigeria: Implications on Investment and Productivity

Margaret Nseobong Ita,Ineye Douglas Ekpebu,Inibehe George Ukpong

doi:10.5539/jas.v5n11p49

Margaret Nseobong Ita, Ineye Douglas Ekpebu + Show 1 more

Open Access

https://doi.org/10.5539/jas.v5n11p49

Copy DOI

Abstract

The study analyzed the budgetary allocations to the agricultural sector in Nigeria. The mean difference test, percentages and trend analyses were used to compare the allocations by the Federal and State levels of government. Results show that there was instability in the way budgets were allocated to the agricultural sector, and there was no significant difference between the allocations made to the sector by the federal and state levels of government. The study recommends that the government at all levels should ensure stability and increment in allocation to the agricultural sector to promote growth and development of the sector. The government should ensure proper monitoring and effective service delivery with regards to allocations to the agricultural sector, while farmers should ensure efficient use of allocated resources for agricultural development. Government should also ensure proper implementation of suitable agricultural policies that would promote increased investments and productivity in the sector.

Highlights

The study analyzed the budgetary allocations to the agricultural sector in Nigeria
Results show that there was instability in the way budgets were allocated to the agricultural sector, and there was no significant difference between the allocations made to the sector by the federal and state levels of government
Agriculture is the major source of livelihood in most rural Nigerian society (IFAD, 2013); neglect of the agricultural sector has opened the way for increased rural poverty, rural-urban migration, hunger and crimes (Iruo, Sogo, & Ukpong, 2010)

Summary

Budget Allocations and Implications on Agricultural Development in Nigeria

A budget is an important tool for economic planning, and becomes necessary to effect good planning because resources are scarce. One major reason for food scarcity and poverty in most developing countries, including Nigeria, is as a result of reduced agricultural production influenced by insufficient capital, poor technology and poor quality inputs, which otherwise would be achieved through increased budgetary allocations under efficient management (Taiwo, 2001). Sectors to promote increased investment and productivity in agriculture, this may include partnership between the oil and gas industry, the government, banks and farmers to promote agricultural development, and enhance improved livelihood for the people (Ogunlade, Oladele, & Ogunsola, 2009). Such partnership would promote improved research and technology, as well as provision of sufficient capital and other farm inputs. Government allocations to the agricultural sector should be properly monitored to promote growth and development of the sector, while government should ensure sustained increase in the allocation of funds budgeted for the agricultural sector as long as such increases are necessary to promote growth of the sector

Materials and Methods

Results and Discussion

Mean Difference Test

Conclusion and Recommendations