International Journal of Agricultural Policy and Research
Vol.6 (11), pp. 201-206, December 2018
Available online at https://www.journalissues.org/IJAPR/
Author(s) retain the copyright of this article. Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution License 4.0 International License.
Original Research Article
Public and private investments and agricultural sector performance in Nigeria, 1981-2016
Francis Agboola Oluleye*1 and Baribe Godwin Toba2
1Department of Economics and Development Studies, Federal University Otuoke, Nigeria.
2Department of Economics , Niger Delta University, Wilberforce Island, Nigeria.
*Corresponding Author Email: francisoluleye(at)yahoo.com
Agriculture remains the backbone of any developing economy and the foundation for rapid and sustainable growth and development of any Nation. To this end, the study investigates how private and public investments in agricultural sector have contributed to the growth of the sector in Nigeria. To achieve the objective, data on public spending on agriculture, banking sector lending to agriculture, Foreign Direct Investment (FDI) inflow to agriculture and interest rate on credit to agriculture were sourced from 1981-2016. Descriptive and inferential statistical as well as econometric techniques were applied to analyze the collected data. The study found that a negative relationship exists between public investment in agriculture and performance of the agricultural sector and a positive relationship between banking sector credit and the performance of agricultural sector. Findings also revealed a negative and insignificant relationship between foreign direct investment in agriculture and the performance of the sector while interest rate was found to be negatively related to the sector performance. Based on this findings, the study recommends increased banks’ lending to agriculture, addressing the problems associated with public funding of agriculture, particularly in terms of misappropriation of agricultural funds, reforms in the agriculture sector in order to attract foreign investment and a reduction in interest rate in order to spur investment and stimulate growth in the agriculture sector in Nigeria.
Key words: Agricultural performance, public investment, private investment