The role of agricultural sector performance on economic growth in Nigeria

The impact of agriculture in maintaining sustainable economic growth has been a major subject of controversy in the literature for a very long time now and this is presently still on among scholars with no conclusion. However, Agriculture is the bedrock for any growing economy and thus a precondition for industrialization. This study critically examines the role of agricultural sector performance on economic growth in Nigeria. Key findings indicated that there is a significant long run relationship between agricultural domestic production and its explanatory variables (Agricultural Credit Guarantee Scheme Fund, Federal Government current expenditure on agriculture, total employment and effect of trade liberalisation). The VECM result found 35 percent speed of adjustment of the endogenous growth model which includes Agricultural Credit Guarantee Scheme Fund, Federal Government current expenditure, total employment and effect of liberalisation (SAP) on agricultural domestic production implying that Interventions in agriculture will take at least 24 months for one half of its effect to be significant on production in Nigeria. Therefore, Policy consistency and commitment of government is required before such intervention can yield the desired results