The Economic Role of Nigeria’s Subsistence Agriculture in the Transition Process: Implications for Rural Development

This study examined the role of subsistence-oriented agriculture in Nigeria in the 1990s to 2000s. The start out by discussing the diverging economic effects of the growth of subsistence agriculture in Nigeria since the transition process started. The quantitative analysis of this sector’s role is carried out by means of an applied Computable General Equilibrium (CGE) model applying a 1994 Social Accounting Matrix (SAM) as base year data. The innovation of the article is to disaggregate primary agricultural production not by products but by farm types, which enables us to distinguish their institutional and economic characteristics. The study simulates two Structural Adjustment Programme (SAP) of the government. The results of the post SAP period highlight that Nigeria’s subsistence agriculture was an important shock absorber against further agricultural output declines during transition. A simulation, which looks into the effects of a devaluation of the Nigeria Naira, shows that the financial crisis should have increased the relative competitiveness particularly of large-scale crop farms versus small-scale farms. The reforms of successive governments show that efficiency enhancing institutional change would benefit both large-scale and small-scale farms. However, within small-scale agriculture, a shift from subsistence to commercial agriculture would take place.Subsistence agriculture, CGE model, Exchange rate, Institutional Development, Structural Constraints, Nigeria, Community/Rural/Urban Development,

The Persistence of Small Farms and Poverty Levels in Nigeria: An Empirical Analysis

Small farmers are one of the more disadvantaged and vulnerable groups in Nigeria. Studies have shown that majority of people living in absolute poverty can be found on small farms with half in this group undernourished. The study examined heterogeneity in circumstances and diversity in rural agriculture, the persistence of small farms, poverty and institutional development and facilities. Data for this study came from Nigerian living Standard Survey (NLSS) which covered the two periods 1994/2004. The data set consists of 9550 respondents’ but only 8264 cases were useful for this study. The index of heterogeneity at 29.1 indicated persistence of small farms in the two periods under consideration. Persistence of small farms and poverty are closely related (r = 0.674). The poverty differential in the two surveys data revealed that poverty increased by 14.72%. Disaggregation analysis indicated that institutional development and facilities improved farm outputs, diversification to non-farm and reduction in poverty. Access to these institutional facilities can enable the small farmers to rearticulate their livelihood activities. Policy makers need to show more commitment to develop agriculture through identifying and providing the capacity need of small farmers in order for them to absorb and used whatever modern techniques introduced.Heterogeneity index, Poverty Differential, Institutional Development, Structural Constraints, Nigeria, Agricultural and Food Policy, International Development,

Public spending mechanisms and gross domestic product (GDP) growth in the agricultural sector (1970–2016): Lessons for Nigeria from agricultural policy progressions in China

China has pursued a sustainable path of development in line with reality for four decades. Economic restructuring started in its vast rural areas, focusing on reforms targeting income increase for rural farmers. These radical sustainable policies that China’s political leaders imbibed were not embraced by Nigeria’s past leaders and these resulted in the bane of underdevelopment. The study examines the level and composition of the drivers of public-spending policy mechanisms that contribute to gross domestic product (GDP) growth in the agricultural sector in China and Nigeria and draws up a model of Chinese development for Nigeria. Secondary data was used and were sourced from FAOSTAT and International Monetary Fund’s Government-Finance Statistics (various issues) from 1970–2016. Random-effects model results revealed that the policy of public-expenditure (PUEXP) and intervention (INTEV) variables were significant but negative, while enterprise-development (ENTDEV), drivers of development (DRIVERS) and Dummy D1t (modest public-expenditure access) were significant and positive for Nigeria. Three variables were significant and positive. The dummies D1t and D2t (macro-economic stability) were positive and significant for China. Public-expenditure and GDP growth has an inverse relationship in Nigeria, but a direct relationship in China. In Nigeria, PUEXP coefficient is ˗0.6810 and 0.8902 for China. Hence, macro-economic stability, enhanced market mechanisms and economic progress resulted in China and hereby lessons are drawn for Nigeria. Public leaders are responsible for governing the market in a manner that induces businesses to produce public value. However, if public-policy mechanisms are not well-designed to fit the economy’s needs it could significantly influence the economy in a negative way, and the society bears the costs

Entrepreneurship Processes and Small Farms Achievements: Empirical Analysis of Linkage

Entrepreneurship process has been argued as opportunity-driven, creative, and resource-efficient, that could influence income generation of small farmers that adopted entrepreneurial skills and innovation into their farming operations. This study examines entrepreneurship process strategies employed to income increase by small farmers, evidence from southwest of Nigeria. The sampling procedures entail three stages of samples selection of 240 farmers but only 200 data was useful. Descriptive statistical and inferential statistics were used to analyze and describe the data. Respondents’ age ranges from 16 to 65 years old, mean age was 36.16 years. The study found out that 5 % of the samples had modest communication skills that aid adoption of effective entrepreneurial processes and about 83% have a strong belief in one’s self to succeed. Successful farmers had multiple sources of related income generation business ventures. Targeting the entrepreneurs for support could make them even more effective

The Economic Role of Nigeria’s Subsistence Agriculture in the Transition Process: Implications for Rural Development

This study examined the role of subsistence-oriented agriculture in Nigeria in the 1990s to 2000s. The start out by discussing the diverging economic effects of the growth of subsistence agriculture in Nigeria since the transition process started. The quantitative analysis of this sector’s role is carried out by means of an applied Computable General Equilibrium (CGE) model applying a 1994 Social Accounting Matrix (SAM) as base year data. The innovation of the article is to disaggregate primary agricultural production not by products but by farm types, which enables us to distinguish their institutional and economic characteristics. The study simulates two Structural Adjustment Programme (SAP) of the government. The results of the post SAP period highlight that Nigeria’s subsistence agriculture was an important shock absorber against further agricultural output declines during transition. A simulation, which looks into the effects of a devaluation of the Nigeria Naira, shows that the financial crisis should have increased the relative competitiveness particularly of large-scale crop farms versus small-scale farms. The reforms of successive governments show that efficiency enhancing institutional change would benefit both large-scale and small-scale farms. However, within small-scale agriculture, a shift from subsistence to commercial agriculture would take place

Analysis of Climate Change Perception and Adaptation among Arable Food Crop Farmers in South Western Nigeria.

Agriculture places a heavy burden on the environment in the process of providing humanity with food and fibres. It is recognized that agriculture has positive externalities such as the environmental services and amenities that it provides, for example through the creation or maintenance of rural landscapes which is given high priority by some developed countries. Trade-offs between food security and the environment is what is being practiced in most developing countries. There are strong indications and already evidence that the agricultural and food system as well as the rural areas across the world are experiencing major change. This change has drastically reduced soil fertility and poor agricultural outputs particularly in Sub-Saharan Africa. This is evidenced in some notable towns and communities in South Western Nigeria that are noted for the production of a peculiar agricultural commodity. Recently, these commodities are gradually going into extinction and the community involved cannot explain why this is so, majority of the respondents attached this incidence to spiritual dimension and not changes in climate. This study therefore examined the people’s perception about climate change and strategies employed to adapt. This study conclude that there is a need for agricultural economists and other stakeholders in environmental management and agricultural sustainability in developing countries to come to terms with negative impacts of climate change and likely positive and beneficial response strategies to global warming

The Persistence of Small Farms and Poverty Levels in Nigeria: An Empirical Analysis

Small farmers are one of the more disadvantaged and vulnerable groups in Nigeria. Studies have shown that majority of people living in absolute poverty can be found on small farms with half in this group undernourished. The study examined heterogeneity in circumstances and diversity in rural agriculture, the persistence of small farms, poverty and institutional development and facilities. Data for this study came from Nigerian living Standard Survey (NLSS) which covered the two periods 1994/2004. The data set consists of 9550 respondents’ but only 8264 cases were useful for this study. The index of heterogeneity at 29.1 indicated persistence of small farms in the two periods under consideration. Persistence of small farms and poverty are closely related (r = 0.674). The poverty differential in the two surveys data revealed that poverty increased by 14.72%. Disaggregation analysis indicated that institutional development and facilities improved farm outputs, diversification to non-farm and reduction in poverty. Access to these institutional facilities can enable the small farmers to rearticulate their livelihood activities. Policy makers need to show more commitment to develop agriculture through identifying and providing the capacity need of small farmers in order for them to absorb and used whatever modern techniques introduced

Effects of Global Climate Change on Nigerian Agriculture: An Empirical Analysis

This paper presents an empirical analysis of the effects of global warming on Nigerian agriculture and estimation of the determinants of adaptation to climate change. Data used for this study are from both secondary and primary sources. The set of secondary sources of data helped to examine the coverage of the three scenarios (1971-1980; 1981-1990 and 1991-2000). The primary data set consists of 1500 respondents’ but only 1250 cases were useful. This study analyzed determinants of farm-level climate adaptation measures using a Multinomial choice and stochastic-simulation model to investigate the effects of rapid climatic change on grain production and the human population in Nigeria. The model calculates the production, consumption and storage of grains under different climate scenarios over a 10-year scenery. In most scenarios, either an optimistic baseline annual increase of agricultural output of 1.85% or a more pessimistic appraisal of 0.75% was used. The rate of natural increase of the human population exclusive of excess hunger-related deaths was set at 1.65% per year. Results indicated that hunger-related deaths could double if grain productions do not keep pace with population growth in an unfavourable climatic environment. However, Climate change adaptations have significant impact on farm productivity