Public Expenditure and the Performance of the Agricultural Sector of the Nigerian Economy

Abstract

The study focused on the investigation of the effect of public expenditure on the performance of the Nigerian agricultural sector. It covers a period from 1990 to 2023. The methodology applied is Autoregressive distributed lag and the data were sourced from both the Central Bank of Nigeria Statistical Bulletin, 2023 edition and the World Bank Tables 2023 edition. The findings from the study revealed that there are positive and significant impacts of government expenditure, tax, and trade openness on agricultural production in the short run confirms the importance of well-targeted government investments and supportive policies in promoting agricultural development. However, the negative and significant effect of inflation on agricultural production underscores the need for effective inflation management strategies to maintain stability and protect the purchasing power of farmers and consumers. Policymakers should take into account these findings when formulating agricultural and macroeconomic policies to ensure sustained growth in the agricultural sector and overall economic development.