Impact Of Agricultural Development On Economic Growth In Nigeria

In recent decades, the main and potential contribution of agriculture to economic growth has been a subject of much controversy among development economists. As some contend that agricultural development is a precondition for industrialization, others strongly object it and argue for a different path. Taking advantage of ordinary least square method(OLS), the research carried out by means of secondary data and using the variables: Annual Gross Domestic Product(GDP), Agriculture value added(Qt), Services, value added(Servt), Manufacturing value added(Manut), Capital(Capt), Agriculture Labor Force(Labt) and Agriculture Land(Landt) to examine the question of whether agriculture could serve as an engine of Economic growth in Nigeria. In most developing countries, agricultural development is both the main sector that provides employment to large segments of the population and the key to sustained economic growth of the countries. In the light of this, the study presents an empirical analysis of the impact of agricultural development on economic growth in Nigeria. Equally highlighted are the problems of agricultural production in Nigeria and the strategies for agricultural transformation of the economy. A vibrant and an efficient agricultural sector would enable a country to feed its growing population, generate employment, earn foreign exchange and provide raw materials for industries. The agricultural sector has a multiplier effect on nation’s economic growth and industrial fabric because of the multifunctional nature of agriculture. The regression analyses were performed using Econometric Eviews statistical package. Results from the empirical analysis provide strong evidence indicating that agricultural development is an engine of economic growth in Nigeria. The results from this study suggest on research agricultural development can improve economic growth and ultimately reduce poverty.The result gotten from the empirical analysis shows that the productivity in agricultural sector has appreciably impacted positively on the economic growth in Nigeria.