THE EMPIRICAL INVESTIGATION OF THE IMPACT OF AGRICULTURAL FINANCIAL ON POVERTY REDUCTION IN NIGERIA (1980 – 2010)

ABSTRACT

The purpose of this research work is to investigate empirically agricultural financing and its impact on reduction of poverty in Nigeria covering the period (1980-2008). In the objective, effort was made to see how agriculture sector financing will reduce the level of poverty in Nigeria. The regression model, otherwise known as Ordinary Least Square (OLS) technique is chosen by the researcher in the research method. The result showed that agriculture financing has no significant relationship with reduction of poverty in Nigeria. Based on the findings, it was recommended that government funding on agriculture should be channeled to farm mechanization. This will help to create employment and boost food production, thereby reducing poverty.

DEPARTMENT OF ECONOMICS

FACULTY OF SOCIAL SCIENCES

 

TABLE OF CONTENTS

Title Page                                                                                                                   i

Approval Page                                                                                                          ii

Dedication                                                                                                                 iii

Acknowledgment                                                                                                     iv

Table of contents                                                                                                     v

Abstract                    

CHAPTER ONE: Introduction 

1.1       Background of the Study                                                                            1

1.2       Statement of Problem                                                                                  6

1.3       Objective of the Study                                                                                7

1.4       Test of Hypothesis                                                                                       7

1.5       Significance of the Study                                                                            7

1.6       Scope and Limitations of the Study                                                          8

CHAPTER TWO: Literature Review

2.1       Review or Related Literature                                                                     9

2.2       The Structure of Nigerian Agriculture                                                      13

2.3       Nigeria Agricultural Sector Development                                                14

2.4       Nigerian Agricultural Sector Performance                                               15

2.5       Agricultural Sector Policies                                                                       18

2.6       Effect (of the polices) on Agricultural output and Growth                   21

2.7       Incidence of Poverty in Nigeria                                                                 24

2.8       The Role of Agriculture in Poverty Reduction                                        28 

2.9       Financing Agriculture and Poverty Reduction in Nigeria                     33

2.10    Agricultural funding in Nigeria (Government Budget)                          35

2.11    Agriculture Credit Guarantee Scheme in Nigeria                                   36

CHAPTER THREE: Research Methodology 

3.1       Model Specification                                                                                    41

3.2       Model Evaluation                                                                                        42

3.3       Sources of Data                                                                                            44

CHAPTER FOUR: Presentation and Analysis of Results  

4.1       Presentation of Results                                                                               45

4.2       Analysis of Results                                                                                      45

4.3       Test of Hypothesis                                                                                       47

4.4       Implication of the Result                                                                            48

CHAPTER FIVE: Summary, Conclusion and Recommendation  

5.1       Summary of Findings                                                                                  49

5.2       Conclusion                                                                                                    50

5.3       Recommendations                                                                                       51

            Bibliography                                                                                                 52     

BIBLIOGRAPHY

Akanji O. O. (2004). Microfinance as a Strategy for Poverty Reduction CBN         Economic & Financial Review, Vol. 39 No.4

Anderson, K. Kurzweil, M. Martin, W. Sandri, D. & Valenzuela, E. (2008)   “Methodology for Measuring Distortions to Agricultural Incentives,”      Agricultural Distortions Working Paper 02, World Bank, Washington   DC, Revised January.  

Central Bank of Nigeria (2000) “Annual Report and Statement of Accounts”,         Abuja: CBN.

Central Bank of Nigeria (2005). “Annual Report and Statement of Accounts,          Abuja: CBN. 

Central Bank of Nigeria (2006) “Annual Report and Statement of Accounts”          Abuja CBN. 

Cowitt, P. P. (ed) (Various years) World Currency Yearbook, Brooklyn:      “Currency Data ancf Intelligence”, Inc.

Daramoia, A. Ehui, S., Ukeji , E., & McIntire, J. (2007). Agricultural Export            Potential, in Collier P. and C. Pattillo (eds), Economic Policy Options for a Prosperous Nigeria, London: Palgrave Macmillan. 

Etuk, O. E. U. (1986) Fertilizer Pricing in Segura, L. T. Shetty, and M.           Nishimizu (eds) Fertilizer Producer Pricing in Developing Countries:         Issues and approaches, industry and finance series, volume 11, World    Bank: Washington DC. 

FAOSTAT (2006) “Food and Agricultural Organization Statistics Database,           electronic data produc, Rome: Food and Agriculture Organization. 

APPENDIX ONE

DATA FOR ANALYSIS

SOURCE: CBN STATISTICAL BULLETIN VOLUME 21, 2010

BUREAU OF STATISTICS ENUGU, ENUGU STATE

 APPENDIX TWO

REGRESSION RESULTS  Dependent Variable: PL
Method: Least Squares
Date: 06/29/13   Time: 14:29
Sample: 1980 2010
Included observations: 31
Variable	Coefficient	Std. Error	t-Statistic	Prob.
C	47.56130	2.304774	20.63599	0.0000
ACGSF	-1.66E-06	1.11E-06	-1.494900	0.1461
GEA	0.000910	0.000316	2.881836	0.0075
R-squared	0.238421	Mean dependent var		50.81935
Adjusted R-squared	0.184022	S.D. dependent var		11.36757
S.E. of regression	10.26849	Akaike info criterion		7.587804
Sum squared resid	2952.376	Schwarz criterion		7.726577
Log likelihood	-114.6110	F-statistic		4.382850
Durbin-Watson stat	0.511563	Prob(F-statistic)		0.022081

Dependent Variable: LOG(PL)
Method: Least Squares
Date: 06/29/13   Time: 11:21
Sample: 1980 2010
Included observations: 31
Variable	Coefficient	Std. Error	t-Statistic	Prob.
C	4.063339	0.272161	14.92991	0.0000
LOG(ACGSF)	-0.072220	0.030999	-2.329773	0.0273
LOG(GEA)	0.110198	0.021679	5.083224	0.0000
R-squared	0.610540	Mean dependent var		3.902520
Adjusted R-squared	0.582721	S.D. dependent var		0.235539
S.E. of regression	0.152152	Akaike info criterion		-0.836113
Sum squared resid	0.648203	Schwarz criterion		-0.697340
Log likelihood	15.95975	F-statistic		21.94721
Durbin-Watson stat	0.454696	Prob(F-statistic)		0.000002

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