Abstract

African food production is in crisis. Today, despite Africa’s vast physical and climatic potentials to produce food, most African States depend on food importation. Africa’s capacity to deal with its food battles is severely constrained by its political instability, its early stage of scientific and institutional development, and a rapidly changing and complex global environment. In Nigeria and in most developing economies, there is a fundamental lack of political commitment to come grips with poverty, malnutrition and access to food. Because of these barriers, traditional economics is a rather limited tool to understand food production and other related variables. Poverty, hunger, malnutrition, famine and starvation in developing economies are just as much a function of political, macroeconomic, and institutional barriers as lack of technology. Illustrations from the agrarian chaos in Sudan, Ethiopia, Somalia, Chad and others are too numerous to conclude otherwise. The aim of this paper is to determine and analyze economics incentives and strategies, which could stimulate commercial agriculture in Nigeria. The analysis is based on the premise that the form of production organization in Nigerian agriculture is the major constraint to commercialization. The paper concludes that output price subsidy is the over-riding factor in the commercialization of agriculture in Nigeria.

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