THE CONTRIBUTION OF THE NIGERIAN

AGRICULTURAL SECTOR IN THE ECONOMY

Agriculture as a branch of the world economy plays a significant role in human life. Its main goal is to
meet the population's needs for food and provide the industry with raw materials. At the end of this
write-up, you will learn the role of agriculture in Nigeria economic development.The relationship
between agriculture and development, especially in Sub-Saharan Africa, cannot be overemphasized. As
a roadmap to attaining development, the Millennium Development Goals (MDGs) was adopted in year
2000 and in Africa, 70% of the developmenttarget group live in rural areas and are dependent on
agriculture for a living (IFPRI, 2004). Invariably, reducing poverty, improving nutrition and general well-
being of the population would imply improving the livelihood of this majority and this hinges critically on
the performance of the agriculture sector. For example, using World Development Indicator (WDI) data
from Nigeria for selected periods, we find a strong positive correlation between food production and
primary school enrollment ratio and gender equality while there is a strong negative correlation
between food production and child mortality rates. This gives some evidence on the importance of
agriculture in economic development.

Let's highlight the main functions of agriculture contributing to the development of the economy:

1). Creation of jobs. Particularly important is the fact that residents of rural areas are provided with
jobs. Statistics of 2010 showed that 30% of the population were engaged in agriculture. This indicator is
constantly growing.

2). Another important role of agriculture is a source of foreign currency, the most important for most
countries. This is mainly contributed by the export of cocoa and other cash crops.

3). Diversification of the economy. As a result of the decline in oil prices, the current economic
situation can be considered the most suitable time for diversification. Nigeria has enough natural and
human potential. All that needed is a serious investment in agriculture.

4). Food security. Foodstuffs, their production, distribution, exchange, and consumption are important
parts of the functioning of the world system.

5). Supplying other industries with raw materials. Cultivation of cotton, oil palm, and other plants
promotes the development of other industries that depend on this raw materials. Also, wool and yarn
are used in different industries.
Importance of agriculture to Nigerian economy cannot be overemphasized.

1). The increase of international investment in agriculture. Over the past fifty years, the number of
multinational companies has grown. They have expanded their global influence in the supply of food,
bio-fuels, timber and minerals. But at the same time, the quantity of real investments is less than the
number of planned, discussed and highlighted in the media.

2). Investors are mainly representatives of the private sector, but governments and public funds also
participate. Investment companies in the private sector are often founded by the government or public
investment funds. That’s why it’s difficult to separate them and assess the degree of involvement.

3). Export grows in agriculture due to the increase in transportation opportunities.

4). However, the reduction of the area and depletion of arable lands is the serious limitation. Soil
fertility continues to decline in many areas due to a lack of nutrients (mineral or organic).

5). The number of rural population is decreasing. There are more urban residents with each year.

6). A combination of population growth, lack of technological development and inefficient

distribution mechanisms led to a rapid reduction in the availability of natural resources to poor farmers.