ECONOMIC ANALYSIS OF PROCESSING AND MARKETING OF CASHEW PRODUCTS IN UDENU LOCAL AREA, ENUGU STATE


CHAPTER ONE

INTRODUCTION
1.1  BACKGROUND OF THE STUDY
Cashew, known as Anacardium occidental is a native of Brazil and was introduced to Mozambique and then India in the sixteenth century by the Portuguese, as a means of controlling coastal erosion. It was spread within these countries with the aid of elephants that ate the bright cashew fruits along with the attached nut. The nut was too hard to digest and was later expelled with the droppings. It was not until the nineteenth century that plantations were developed and the tree then spread to a number of other countries in africa, Asia and Latin America.(Herringtton and coulter,2004). Cashew processing using manual techniques, was started in India in the first half of the twentieth century. It was exported from there to the wealthy western markets, particularly the United States. In the 1960s some of the producing countries in East Africa began to process nuts domestically rather than sending them to India for processing. This allowed them to benefit from the sale of both processed nuts and the extracted cashew nut shell liquid. Cashew kernels are ranked as  either the second or third most expensive nut trade in the United States. The four main producing regions in the world are India, Nigeria, Brazil and Tanzania. World production of cashew nut grew rapidly during 1950s and 1960s, reaching a peak of 624000 tonnes of raw nuts in 1973. Three countries India, Mozambique and Tanzania accounted for the majority of this production while smaller industries have developed in Brazil, Kenya and several other African countries. There was a total decline in world production, which continued till 1980s (The clipper, 2004). The reason for the decline is due to the decreased production in Mozambique and Tanzanian, since production in Mozambique during the late 1980s and 1990s, production picked up and continued to increase gradually.(Jaffee and Morton,2006). In 2000, to be precise, world cashew production exceeds 1.2 million tones. Asia and Africa countries produced 0.6 million and 0.4 million tones respectively (Herrington and Coulter 2004). Africans overall production steadily increased during the 1950s and 1960s until mid 1970s when it was the prime producer of cashew nuts. Then, in 1975, the production started to decline throughout the continent due to combination of some factors based on biological, political and agronomic basis(Andrighetti et al,1998). 
1.2   PROBLEM STATEMENT
Recent study found that cashews are well-known, popular and widely consumed by urban populations in Nigeria and West Africa at large. Though perhaps not everyday food, cashew kernels are a mature product in urban West African Markets associated with quality and luxury and widely available in urban settings. Indeed cashews may be consumed in certain upper-class segments of African society with greater frequency than in Europe or America due to a lack of wide range of substitution with similar associations. The semi – industrial faculties supplying the local market have relatively high fixed cost (in terms of building and equipment) and little consistency in their level of operational use. Because the facilities are mostly run at reduced or seasonal production capacity and staff do not have sufficient training or systems to optimize productivity, the cost of operation are higher relative to export oriented faculties. The larger facilities often (but not always) have better access to financial and usually have acquired their working capital at better interest rates. As this study pointed out, most processors and/or roasters/salters distribute their products themselves. Given the small size of the factories and limited number of staff, distribution and marketing is not specialized or approached in a strategic or full-time manner. Limited availability of packaging equipment and materials in the study area and relatively high prices drive up final product prices for ready to eat cashews. Prices are also high due to the low prices paid for broken nuts (if they are sold at all), which forces processors to charge higher prices for whole nuts. Broken nuts comprise 20 – 40% of production for most cashew processors. Cashew has many uses ranging from fruits known as apple to its nuts which is the kernel to the liquid known as cashew Nut shell liquid {CNSL}. The extraction of the nuts, notwithstanding, to the collection of the liquid from the apple and the extraction of the liquid from the CNSL makes for the full economic utilization of the products. Cashew processing and marketing in the study area have these major problems. These includes the following The cashew apples are sold in the local markets resulting in under valuation of the products in monetary terms. And also cashew kernels are normally extracted by roasting which causes breakages during the cracking and thereby reduces the quantity when grading the cashew nut shell liquid {CNSL} is also wasted away in the process of roasting cashew production is seasonal and its produces only once in a year. Therefore, how can cashew products be properly utilized to reduce wastage and increase the economic value of all its products ranging from the nuts to the apple and also the liquid from the CNSL. How can one attain commercial ways of processing and marketing which will increase mass production for continental and global consumption. How can one acquire cashew processing equipment at affordable price. 
1.3  OBJECTIVES OF THE STUDY
The broad objective of this study is to analyze through research in the production, processing and marketing of cashew products in the study area. The specific objectives are to: 
i)                   Identify the cashew products; 
ii)                Ascertain the techniques used in cashew products processing;
iii)              Access the channels in which the product  are marketed;
iv)              Identify the problems of processing and marketing of cashew products and; 
v)                Make recommendation based on the findings. 
1.4   SIGNIFICANCE OF THE STUDY
This research finding was chosen for Udenu Local Government area of Enugu State as a result of the abundance of cashew producers, processors and marketers in the study area. Cashew has diverse uses and its importance  can not be over emphasized. Cashew nut is a popular snack, and its rich flavour means that it is often eaten on its own, highly salted or sugared. Trees are used in the control of coastal erosion. Cashew apple is eaten fresh which is high in vitamin. Dried cashew trees can also serve as fuel for cooking food. In addition, cashew nutshell liquid (CNSL), a by product of processing cashew, is mostly composed of anacardic acids. These acids have been used effectively against tooth absceses due to their lethality to bacteria. These products need to be fully utilized for maximum production and minimize waste. Also this study will help to access the techniques used in the processing of cashew products and the grading system used in the standardization of products. The study also helps to know the products being processed and marketed in the study area. The marketing system available to them and also the economic value attached to the sales. Therefore, I hope that the study if carefully examined shall help in the utilization of cashew products as studied and analyzed through this research work. 
1.5    LIMITATION OF THE STUDY
This study or researches were limited by many factors: firstly, the time allowed for this study was short compared to the volume of work requirement to bring out a comprehensive research work. Secondly, finance was one of the major factors to reach the respondents in their various locations in one way or the other requires some costs. Language barrier is another limitation. Many of the respondents were illiterate who could not read out the questions from the questionnaire. Some of the respondents were also griped with fear and doubt about the genuineness of the research. The system of their measurement lacked appropriateness. For example, the products marketed or processed could not be accurately measured. All these really made the research face a lot of inconsistence in obtaining data. In spite of all these limitations, the work or result of this analysis is reliable, accurate and valid.

AGRICULTURE, TRADE REFORM AND POVERTY REDUCTION: IMPLICATIONS FOR SUB-SAHARAN AFRICA

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

The WTO Ministerial Declaration at Doha in November 2001 places considerable emphasis on development (WTO, 2001b), although the outcome is not guaranteed. Many developing countries – particularly in Africa – are skeptical that they will receive sufficient gains from that MTN to warrant the inevitable costs of negotiations and adjustments. These countries and some donors also still need to be convinced that such trade reform will alleviate rather than add to poverty and food insecurity in developing countries. Some are concerned about the loss of trade preferences as developed countries’ MFN tariffs are reduced. Net food-importing countries are especially worried that they will be made worse off by having to pay a higher food import bill following agricultural trade reform.

Trade policy does not deal with income distribution issues, because in virtually all countries they can be handled more efficiently by more direct policy measures (Corden, 1997, Ch. 4). Nonetheless, it is important to be aware of the distributional consequences of trade (and other) policy changes and to check that measures are in place or, are introduced to deal effectively with any vulnerable groups who may be made worse off by those trade reforms abroad and/or at home.

It is estimated that between 350 million and 1.2 billion people live on less than US$1 a day, most of whom are in rural Sub-Saharan Africa and South Asia (Sala-i-Martin, 2002; Collier and Dollar, 2002; etc). This study looks at the likely effects of the current WTO negotiations on poverty alleviation with a particular focus on agriculture and rural households in developing countries, especially those in Africa. The reason for the rural focus is not just because that is where most of the world’s poor live and work, but also because agricultural markets are the most distorted in the world and hence any across-the-board cut in trade distortions would bring down the relative price of agricultural products in international markets.

There is a large body of empirical evidence showing that trade liberalization – easing tariffs and other import restrictions as well as reducing or eliminating domestic supports and export subsidies – tends to boost economic growth, at least in the longer term, and this has helped to reduce the number of persons living in absolute poverty(Dollar and Kraay, 2000). In the longer term, and in the absence of externalities, own-country liberalization tends to increase aggregate welfare through improvements in resource allocation and employment generation but, there will always be some who lose in the absence of compensation. However, in the short-term structural adjustment costs and the immediate impact on the poor may be negative, particularly in developing countries that do not have the resources, institutions or infrastructure to facilitate the changes nor the social safety nets to cushion the negative effects. Changes in trade policies in other countries also have an impact through altering a country’s terms of trade, which again can generate winners and losers within each developing country. If the combination of the effects of reforms at home and overseas is pro poor, it will reinforce any positive growth effects of trade reform on the poor; but for countries where those changes are not likely to be pro-poor, governments may need to amend domestic policies or boost public investments to prevents  a deterioration  in  the welfare of vulnerable groups. To achieve this, the developing countries are likely to need some leeway and external support through the provision of resources to build “soft” and “hard” infrastructure.

The many African countries that are heavily dependent on exports of farm commodities can anticipate being better off following WTO-induced trade reform, particularly by the developed countries, which use an array of instruments to support their farm sectors and limit access and entry to their markets. The elimination of these trade distortions would level the playing field, and make it more feasible for African countries to contemplate undertaking their own reforms that would otherwise expose their fragile sectors to unfair competition. Those African countries whose food imports represent a large part of their foreign payments could face a higher food import bill but, if their farmers can respond to expected increases in international prices – however modest – as export subsidies are reduced by the developed countries, this could have positive effects on food security and poverty alleviation. Therefore, all African countries need to play an active role in the WTO negotiations to ensure that their particular interests are taken into account.

The quantitative analysis in this study shows that about half of the potential global economic welfare gains from trade reform would come from changes in the policies of the OECD countries in the agriculture and processed food sectors. The present analysis also confirms earlier analyses (e.g., Krueger, Schiff and Valdes, 1988) showing that some developing countries have an anti-agriculture, anti-poor bias in their own policies and so are not making the best use of their own resources – although the extent of that has been reducing over the past decade or two (see Jensen, Robinson and Tarp, 2002).

These welfare results are driven by improvements in the terms of trade (e.g. export prices rising more than import prices) and the efficiency effects of improvements in the allocation of resources between different activities. This study looks at changes in prices, outputs and trade balances by sector, which can expose potential adjustment problems and policy dilemmas for developing countries. However, it should be kept in mind from the outset that the results are based on a comparative static analysis, comparing a preand post-liberalization situation, without taking account of transition periods or adjustment costs such as the movement of resources from highly-protected industrial sectors in developing countries.1 The results are also limited in that SPS and TBT barriers and other market entry restraints that developing countries face in their major markets are not modelled, and perfect competition is assumed. The effects of trade reform on poverty are addressed at three levels: first focusing on developing countries as a group; then on different types of developing countries and finally, on different types of households within developing countries.

1.2       Statement of the Problem

There are important gains in agricultural exports as a result of the simulated elimination of all forms of trade intervention, and a decline in net food imports. However, there are important variations as between industries. There are gains in most agricultural sectors (except “other crops” in Sub-Saharan Africa when that region and South Asia are excluded from the reforms). On the positive side, there are also marked net trade gains in the energy and minerals sectors. However, “other” manufactures faces an important trade loss, especially if developing countries join in the elimination of trade measures (mainly industrial tariffs in this case), The counter to this would be corresponding net gains for developed countries but, other developing regions especially in South-East Asia may also be winners.

Does this mean that Sub-Saharan Africa should be indifferent to or should refuse to participate in the WTO negotiations? The answer is certainly not. On the contrary, they would be worse off if their governments did not participate actively in the WTO process. First, these countries would forego the opportunity to safeguard their own trade interests and to seek greater access for their exports to other markets. Second, they would forego the opportunity to obtain economic efficiency gains from reducing the policy biases against their own rural sectors, while still suffering the terms of trade loss from others’ reforms (or lack thereof), since any one of those countries is too small for its own policy choice to alter the terms of trade significantly. The fact that other countries are also undertaking reforms sometimes makes it politically easier for governments to introduce similar changes at home. Thirdly developing countries that face important structural adjustments, tariff revenue and preference losses would be able to argue a case for support for institution-building and the implementation of programmes to facilitate adjustment and to provide social safety nets and compensation from the developed countries that win from the negotiations. It may also be helpful in persuading bilateral donors and the IFIs, under the coherence mandate, to help Sub-Saharan African countries overcome serious supply constraints in the real economy, for example in infrastructure projects and overcoming technical barriers to trade.

1.3              Objectives of the Study

The study sought to know the agricultural trade reform, and poverty reduction: implications for Sub-Saharan Africa. Specifically, the study sought to;

1.   examine the relationship between trade reform and poverty reduction.

2.   determine the implications of agricultural trade reform in the Sub-Saharan in Africa.

3.   discuss the effect of trade reform and poverty reduction in other developing countries.

1.4       Research Questions

1. What is the relationship between trade reform and poverty reduction?

2. What are the Implications of agricultural trade reform in the Sub-Saharan in Africa?

3. What is the effect of trade reform and poverty reduction in other developing countries?

1.5       Research Hypotheses

Ho1: There is no relationship between trade reform and poverty reduction.

Ho2: There are no Implications of agricultural trade reform in the Sub-Saharan in Africa.

1.6       Significance of the Study

This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

1.7       Scope/Limitations of the Study

This study is on agriculture, trade reform and poverty reduction: Implication for Sub-Saharan in Africa.

Limitations of Study

Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8       Definition of Terms

Agriculture: Agriculture is the cultivation of land and breeding of animals and plants to provide food, fiber, medicinal plants and other products to sustain and enhance life.

Trade reform: is to help raise economic growth and employment generation by improving resource allocation and economy wide efficiency.

Poverty reduction:    Poverty reduction, or poverty alleviation, is a set of measures, both economic and humanitarian, that are intended to permanently lift people out of poverty.

Implications: the conclusion that can be drawn from something although it is not explicitly stated.

Sub-Saharan Africa:  is, geographically, the area of the continent of Africa that lies south of the Saharan.

PROFITABILITY ANALYSIS OF LAYER ENTERPRISE IN ESAN NORTH EAST AND OVIA NORTH EAST LOCAL GOVERNMENT AREAS OF EDO STATE, NIGERIA

CHAPTER ONE

INTRODUCTION

BACKGROUND TO THE STUDY

The problems of food insecurity and hunger in recent years have continued to attract the attention of experts and Government worldwide (Babatunde et al., 2007).
FAO (1995), asserted that the most critical in the global food basket crises is protein, especially of animal origin. However, Oluyemi and Roberts (2000) and Isika et al., (2006), postulated that poultry was strategic in addressing animal protein shortage in human nutrition.
In Nigeria, the production of food has not increased at the rate that can meet the increasing population. While food production increases at the rate of 2.5%, food demand increases at the rate of more than 3.5% due to high rate of population growth of 2.83% (CBN, 2004).
Animal scientists, economists and policy makers are of the opinion that the development of livestock (poultry) industry is the only option for bridging the generally known protein deficiency gap in a Nigerian’s diet (Mbanassor and Nwosu, 1998). Apart from its contribution to the Gross Domestic Product and provision of employment opportunities, poultry production (egg) is a major source of protein in the country (Ajibefun and Daramola, 1999).
Poultry production is predominant among livestock production in Edo State. People depend on poultry for food and poultry farming serves as an additional occupation to supplement the income of small and marginal farm families. Poultry occupies an essential position because of its vast potential to bring about rapid economic growth, particularly benefiting the weaker section (Ekunwe et al., 2006).
Egg is a rich source of protein, lipids, vitamins, phosphorus and other nutritionally important substances. Eggs are easily digestible and they are sources of raw materials for agro-allied industries that utilize them in the production of food, drinks, baking confectionery and in the propagation of viruses in vaccine production. Besides, egg marketing provides a source of income to those who engage in it.
STATEMENT OF PROBLEM

For Nigeria to attain food security, there is the need for the development of all sectors of agriculture. There is the need for significant improvements in the livestock industry and poultry in particular. Events of the past decades indicate that the demand and supply gap for animal protein intake is so high (Yusuf and Malomo, 2007). Egg producers, like other producers are rational, thus, they would increase their supply if they are sure of making higher profit ceteris paribus (Emokaro et al., 2009). Higher profit thus ensures the sustainability of the industry.
The research is designed to address the following:
Are poultry farmers in the study area really making profit from their poultry egg production?
Can these farmers actually analyze the cost and returns from their enterprise?
What are the major constraints faced by egg farmers in the study area?
Do poultry farmers in the study area keep up to date records of their enterprise?
OBJECTIVE OF THE STUDY

The broad objective of the study was to investigate the profitability of poultry egg production in Esan North East and Ovia North East Local Government Area of Edo State.
To meet the general objective, the study focused on the following specific objectives:
Examined the socio-economic characteristics of egg producers in the study area.
Estimated the farmers’ current level of profit from egg production.
Estimated the viability of egg production in Esan North and Ovia North East Local Government Areas.
Identified the constraints faced by poultry farmers in the area of study.
Analysed the relationship between input used and quantity of eggs produced by respondents.
Estimated the farmers’ current level of profit from day old chicks to point of lay production.
HYPOTHESIS

Ho:There is no significant relationship between the socio-economic characteristics of the respondents and the profitability from poultry production.
H1:There is a significant relationship between the socio-economic characteristics of the respondents and the profitability from poultry production.
JUSTIFICATION OF THE STUDY

Although much work has been done in the area of profitability analyses, poultry egg production requires a continuous research to meet the changing problems and constraints of the industry.
It is hoped that the information provided by the study will guide prospective poultry enterprise and contribute to effective policy formulation and implementation as regards improving the business.

FARMERS ADOPTION OF IMPROVED TECHNOLOGY IN CASSAVA PRODUCTION AND PROCESSING IN PERI-URBAN AREAS OF EDO STATE A CASE STUDY OF IKPOBA OKHA AND OVIA NORTH EAST LOCAL GOVERNMENT AREAS

CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Technology can also be defined as a general term for the processes by which human beings fashion tools and machines to increase their control and understanding of the material environment (Merritt, 2008). Technology is the most important factor that can contribute to growth in agricultural productivity. The use of technology in agriculture involves the application of technological innovations into production, storage and processing of agricultural products to improve the efficiency. These improvements include the use of mechanisation in farming, the use of chemicals to control diseases and pests, the use of fertilizers, new tillage practices, introduction of improved plant and animal species and so on. The major contributions of agricultural technology are an increase in farm productivity resulting in increased income and poverty reduction, food security and others (Department for International Development United Kingdom-DFID, 2004). The availability of these innovations or technology for agricultural production is one step in the process of improved agricultural production, the next and most important step is the adoption of these improved production technologies by the farmers.
The adoption of new technology is described as an innovation decision process through which an individual passes through the time of first knowledge of the innovation to a decision stage of either adoption or rejection and confirm the decision (Ekong, 2003). It is the stage in which an individual (in this case the farmer) decides to use a new technology. The adoption of any technology is dependent on the profitability of the technology, the risk and uncertainty associated with it, the initial capital requirement, socio-economic characteristics of the farmers and cultural/traditional belief systems. The increase in productivity associated with improved technologies can only be reaped if the farmers adopt the technology.
Peri-urban areas are those areas around urban areas; they are the fringes of urban cities and are intermediary between urban areas and rural areas bearing some characteristics of both. A Peri-urban area as described by Thünen (1966) is based on the following components when compared with urban areas; 
Peri-urban is, in some fashion, connected to being urban
Demographic components; this is based on the population size of the area. The peri-urban area has a population density markedly less than urban areas but not as small as rural areas.
Geographic component; peri-urban areas are in close proximity to urban areas.
Temporal component; this describes peri-urban areas as relatively temporary due mainly to the growth of urban areas and advancements in transportation systems.
Another description of peri-urban is given by the Organisation for Economic Co-operation and Development (OECD, 1979): The impacts of economic growth and physical expansion of the urban area are not confined within urban boundaries; they reach into much wider areas surrounding urban centres, creating so-called “rurban areas”, “urban fringe areas”, or “peri-urban areas”. While the peri-urban area retains the characteristics of the rural area, these are subject to major modifications: changes take place with respect to physical configuration, economic activities, social relationships and so forth.
Cassava (Manihot esculenta Crantz) is a perennial woody shrub which grows to a height of about 1-3m and is cultivated mainly for its roots (and to a lesser extent its leaves. Cassava roots are utilized for human consumption, as a constituent of animal feed, in the production of industrial starch and as a source of bio-fuel. Cassava excels under suboptimal conditions such as low soil fertility and drought, offering the possibility of using marginal land to increase total agricultural production (Cock, 1982). Cassava has a high rate of converting available sunlight to carbohydrates and according to Burrell (2003) contributing to the importance of cassava in most tropical countries. It grows and is cultivated in the tropical and subtropical areas of the world as a food and cash crop. Africa produced about 54% of the cassava in the world with Nigerian cassava production being the largest in the world with approximately 34 million tonnes in 2001; a third more than production in Brazil and almost double the production of Indonesia and Thailand (FAO, 2004). 
1.2 Statement of the Problem 
Nigeria is the largest producer of cassava in the world with 34 million tonnes of cassava produced in 2001 and an average yield of 10.6 tonnes per hectare in 1999 (FAO, 2004). In spite of this, Nigeria’s potential for cassava production has not been reached. Former president Gen Olusegun Obasanjo’s cassava production initiative envisaged that US$5 billion a year would be attained from cassava production in 2007, it was determined that 150 million tonnes of cassava would be needed by the end of 2006 to achieve the Presidential Cassava Initiative (PCI Subcommittee, 2002) and as at 2006 about 45 million tonnes of cassava was produced (United States Agency for International Development-USAID, 2008). This clearly shows that there is a large gap between current production levels and this target.
Cassava production in peri urban areas can contribute to the achievement of this target through an increase in current levels of production in these areas. However for an increase in production to occur there has to be an increase in adoption of improved production technologies (Doss, 2006). Knowledge of the current level of adoption of improved cassava production technologies in peri urban areas will aid in the formulation of appropriate policies to increase productivity and aid in achieving the cassava production potentials of Nigeria.
This is where this study comes in; it is aimed at discovering farmer’s adoption of improved cassava production technology and the constraints to technology adoption peri-urban areas. It also would answer the following questions:
what are the socio-economic characteristics of cassava farmers in peri-urban areas?
are the cassava farmers in peri-urban areas aware of improved technologies?
what are the sources of information about new technologies available to cassava farmers in peri-urban areas?
what is the level of adoption of improved technologies by cassava farmers in peri-urban areas?
what are the factors affecting the adoption of new technologies by cassava farmers in peri-urban areas?
what are the problems encountered by cassava farmers in adopting new technologies in peri urban areas?
1.3 Objectives of the Study
The general objective is to determine farmer’s adoption of improved cassava production technologies in peri-urban areas of Ikpoba Okha and Ovia North East local government areas of Edo state.
The specific objectives of the study were to;
Determine the socio-economic characteristics of peri-urban cassava farmers in the study area
Assess cassava farmer’s awareness of improved production technologies in the study area
Ascertain the level of adoption of improved production technologies by cassava farmers in the study area
Identify the factors affecting technology adoption in of improved production technologies in the study area. 
Identify the sources of information on new technologies in the study area
Determine the problems encountered by farmers in adopting new technologies in the study area
1.4 Research Hypotheses 
There is no significant relationship between the socio-economic characteristics of cassava farmers in peri-urban areas and their adoption level of improved production technology.
There is no significant relationship between cassava farmers’ sources of information on improved production technology and their adoption of these technologies.
1.5 Justification
Increasing cassava production through the adoption of improved production technologies in p eri urban areas will not just help to attain a potential or reach a target, it will improve the lives of people who live in the peri urban areas through increased food production, higher incomes as well as those in the surrounding urban areas by increasing the availability of cassava products for consumption and as an industrial raw material, reduction in the price of cassava products; this will be due to reduced transport costs due to proximity as compared with those cassava products that are transported from the rural areas. All these sum up to a reduction in poverty and increasing levels of food security.
This study will provide insight into the production processes of cassava farmers in peri-urban areas, showing their level of adoption of improved technologies from land clearing and tillage to harvesting, storage and processing of cassava with the aim of determining their level of adoption, factors and problems affecting their adoption of improved cassava production technologies.
Knowledge of this would help Local, State and Federal extension authorities, Agricultural development projects (ADPs), Federal and State ministry’s of Agriculture, communities and cooperatives develop policies that would aid in resolving identified problems affecting cassava farmer’s adoption, provide conducive conditions that encourage increased adoption levels of improved cassava technologies in peri-urban areas and in the long run increase cassava production in Nigeria.

THE IMPACT OF GOVERNMENT SPENDING ON THE AGRICULTURAL SECTOR AND ECONOMIC GROWTH IN NIGERIA (A CASE STUDY OF FEDERAL MINISTRY OF AGRICULTURE, KOGI STATE)

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

The contribution of agricultural sector to the economy of Nigeria cannot be overemphasized when considering its building roles for sustainable development, in terms of employment potentials, export and financial impacts on the economy. In the world nowadays, agricultural sector acts as the catalyst that accelerates the pace of structural transformation and diversification of the economy, enabling the country to fully utilize its factor endowment, depending less on foreign supply of agricultural product or raw materials for its economic growth, development and sustainability. Apart from laying solid foundation for the economy, it also serves as import substituting sector, providing ready market for raw materials and intermediate goods. The agricultural sector contributes significantly to the nation’s economic development by: improving the standard of living; increasing government revenue through tax; infrastructural growth; enhance manpower development; employment generation; contribution to Gross National Products (GNP); It plays a key role by sourcing of food for man and animal and providing raw materials for the industrial sector, provision of employment and foreign exchange to the government, amongst others. With about 70% of the working population still engaged in Agriculture, It remains the most important single activity of the Nigerian economy. Despite the predominance of the oil and gas sector in Nigeria, agricultural sector still remains source of economic resilience within the Nigerian economy. So far, it’s been argued that the quicker trend through which a nation can achieve sustainable economic development is neither by the level of its endowed material resources, nor that of its vast human resources, but technological innovation, enterprise development (commercial farming of various types inclusive) and industrial capacity. Government spending is perhaps the single most important policy instrument available to governments of most developing countries for promoting growth and equitable distribution. Aside the fact that government spending is used to improve technology, human capital and infrastructure development necessary for growth, it also provides the incentives and enabling environment to promote private sector investments in order to further growth. Public spending is the government spending from revenue derived from tax and other revenue. An important problem facing most countries is the low growth of government revenue at variance with rapid growth of public spending stimulated by the increase in demand for improved economic welfare by the people. This however leads to an increase in budget deficits with adverse effects on efficiency and macro-economic stability. The people whose lives are directly affected by government spending expect the government to do more with their welfare; thus, annual budgets are eagerly awaited for possible indications of any change. In Nigeria, the general administration including defence and internal security, economic service like agriculture, communication, transportation, construction etc. along with social and community services, which also include education, low housing etc, have attracted government expenditure decisions. Other factors responsible for growth in the public expenditure are inflation, population; provision of infrastructure and encouragement of industrial development. On the other hand, public spending has helped the economy in numerous ways in attaining higher levels of production and growth, which obviously are inter-related. It has been used to create and maintain social overheads, human skills through education and training, encouraged the market sector of the economy for contributing to the process of economic growth and create demand for various products and stimulate private production (Olugbenga & Owoeye, 2008). Government performs two functions- protection and provisions of certain public goods (Abdullah 2000). Supporting this view, scholars like (Al- Yousif, 2000), (Ranjan & Shrma, 2008) concluded that expansion of government spending contributes positively to economic growth. However, some scholars did not support the claim that increasing government expenditure promotes economic growth, instead they assert that higher government expenditure may slowdown overall performance of the economy. In fact, studies by (Landau 1986) suggested that large government spending has a negative impact on economic growth. Inadequate funding of the agricultural sector has been re-echoed by several experts as an obstacle to increased agricultural output (CBN, 2007). However, it is evident that in Nigeria, government spending on agriculture continue to increase over the years while empirical evidence have revealed that the performance of the agricultural sector has been inadequate (CBN, 2000). The agricultural sector in Nigeria which was the main stay of the economy is no longer performing the lead role it was known for. In mid 1970’s Nigeria’s agricultural sector started to experience issues, agricultural exports began to decline and food shortages started emerging. From 1975, emboldened by considerable enlarged revenue from petroleum, government assumed huge responsibilities for agricultural production, input supply and marketing; in addition to adopting credit control and other allocated policies in favour of agriculture. Also, in 1994, the agricultural sector performed significantly below the projected 7.2% of budgetary output (Lawal, 1997). Contribution of agricultural sector to economic growth has been decreasing continuously after the Structural Adjustment Programme (SAP) period. Recently, in Nigeria, there has been a conflicting view about spending on agriculture; the performance of the agricultural sector had fared better than it was before independence. Input-output theory in economics posits that input determines output; theoretically this is needed to increase government spending in order to boosts economic growth. Problems particular to the economy of Nigeria include; unprecedented fall in capacity utilization rate in industry, dysfunctional social and economic infrastructure, excessive dependence on imports for consumption and capital goods and neglect of the agricultural sector, among others. These problems have resulted in fallen incomes and devalued standards of living amongst Nigerians. Although, Structural Adjustment Programme was introduced in 1986 to address these problems, no notable improvement has taken place since then. In view of this, the question now is; does the agricultural sector “ceteris paribus” has impact on the economic growth of the nation in view of the Vision 20;2020. The statement to be set to test in this research paper is to examine the impact of government spending on agricultural sector and economic growth in Nigeria.

1.2 STATEMENT OF THE PROBLEM

In spite of Nigeria’s rich agricultural resource endowment, there has been a gradual decline in agriculture’s contributions to the nation’s economy. The agricultural sector during the 1960s, accounted for over 70% of the total exports in Nigeria. According to Olajide, et al (2012), the agriculture sector fell to 40% in the 1970s, and got worse in the late 1990s by less than 2%. The sudden decline in the agricultural sector was largely due to the rise in crude oil revenue in the early 1970s. As a result of this, today, small scale farmers are constrained by lots of problems including poor infrastructure, poor access to modern inputs and credit, land and environmental degradation, inability to capture the financial service requirements of farmers and agric-business owners. Categorically, the state of agriculture in Nigeria remains poor and largely underdeveloped which is constrained by the lack of synergy between public and private expenditure in boosting agricultural production, the sector rely on primitive methods to sustain a growing population without efforts to add value. This has reflected negatively on the productivity of the sector, its contributions to economic growth as well as its ability to perform its traditional role of food production among others. According to Falola and Haton (2008), the state of this sector has been blamed on oil glut and its consequences on several occasions. Hence, the pattern was not an outcome of increased productivity in the non-agricultural sectors as expected in the industrialization process (Christiansen & Demery, 2007); rather it was the result of low productivity due to negligence of the agriculture sector. It is evident that the agricultural sector especially the small scale farmers constitute about 70% of the population in Nigeria, yet agricultural output has been very low due to government’s neglect in form of financial aid, and soft loan to boost agricultural output, which in turn has a negative effect on the Nigerian economy as a whole. Therefore, it is on this note that this study is hinged to examine the relationship between government spending on agricultural sector and economic growth in Nigeria.

1.3 AIMS AND OBJECTIVES OF THE STUDY

The major aim of the study is to examine the impact of government spending on agricultural sector and economic growth in Nigeria.  Other specific objectives of the study include;

  1. To examine the amount of money spend on agricultural sector by government in Nigeria.
  2. To assess the challenges faced by the agricultural sector in Nigeria.
  3. To examine the impact of government spending on agricultural sector and economic growth in Nigeria.
  4. To examine ways agricultural sector will enhance economic growth in Nigeria.
  5. To examine the relationship between government spending on agricultural sector and economic growth in Nigeria.
  6. To highlight alternative procedures that can be taken to improve methods of financing agricultural sector effectively.
    1. RESEARCH QUESTIONS
  7. What is the amount of spending by the government on agricultural sector in Nigeria?
  8. What are the challenges faced by the agricultural sector in Nigeria?
  9. What are the impact of government spending on agricultural sector and economic growth in Nigeria?
  10. What are the ways agricultural sectors will enhance economic growth in Nigeria?
  11. What is the relationship between government spending on agricultural sector and economic growth in Nigeria?
  12. What are the alternative procedures that can be taken to improve methods of financing agricultural sector effectively?
    1. RESEARCH HYPOTHESES

Hypothesis 1

H0: There is no significant impact of government spending on agricultural sector and economic growth in Nigeria.

H1: There is a significant impact of government spending on agricultural sector and economic growth in Nigeria.

Hypothesis 2

H0: There is no significant relationship between government spending on agricultural sector and economic growth in Nigeria.

H1: There is a significant relationship between government spending on agricultural sector and economic growth in Nigeria.

1.6 SIGNIFICANCE OF THE STUDY

The study would be of immense benefit towards the development of agriculture in Nigeria by properly assessing the importance of agriculture to the country at large. The findings of this study will be useful for the Economic Planners who are responsible for allocating budgetary for the growth and development of agriculture sector. The study would also be of immense benefit to students, researchers and scholars who are interested in developing further studies on the subject matter.

1.7 SCOPE AND LIMITATION OF THE STUDY

The study is restricted to the impact of government spending on agricultural sector and economic growth in Nigeria, a case study of federal ministry of agriculture, Kogi state.

  1. LIMITATION OF THE STUDY

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview)

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

  1. DEFINITION OF TERMS

Government Spending: Itrefers to the purchase of goods and services, which include public consumption and public investment, and transfer payments consisting of income transfers (pensions, social benefits) and capital transfer

Agriculture: The science, art, or practice of cultivating the soil, producing crops, and raising livestock and in varying degrees the preparation and marketing of the resulting products.

Economic Growth: Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP.

IMPACT OF SOCIAL MEDIA ON CONSUMER BEHAVIOUR FOR HIGH VALUE AGRO PRODUCTS AMONGST URBAN POPULACE (A CASE STUDY OF CIVIL SERVANTS IN MAKURDI, BENUE STATE)

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

Social media are increasingly influencing and changing the way the consumers behave, and how they make the decision to buy. Social Media will come in handy as a good example of new technological innovation that is making a great impact in the organizations of today. The advancements in the internet in recent years have made new systems available to business: social media such as online communities being a good example (Lu et al. 2010). The general availability of the internet has given individuals the opportunity to use social media, from email to Twitter and Facebook, and to interact without the need for physical meetings (Gruzd et al. 2011). This has been facilitated by Web 2.0 applications. Web 2.0 is a new advancement, which has transferred the internet to a social environment by introducing social media, where individuals can interact and generate content online (Lai & Turban 2008). Web 2.0 has emerged to give users easier interconnectivity and participation on the web (Mueller et al. 2011). With the rise of social media and online communities, individuals can easily share and access information (Chen et al. 2011a). Online communities and social networking sites (SNSs) are an effective web technology for social interactions and sharing information (Lu & Hsiao 2010). Social media sites take centre-stage in e-commerce in the current environment (Fue et al. 2009), where consumers make social connections and participate in cyberspace (Mueller et al. 2011). Today’s consumers have access to many different sources of information and experiences, which have been facilitated by other customers’ information and recommendations (Senecal & Nantel 2004). This is an important point as customer involvement through social media is a key factor in marketing (Do-Hyung et al. 2007). Social media offer different values to firms, such as enhanced brand popularity (de Vries, Gensler &c Leeflang 2012), facilitating word-of-mouth communication (Chen et al. 2011b), increasing sales, sharing information in a business context (Lu & Hsiao 2010) and generating social support for consumers (Ali 2011; Ballantine & Stephenson 2011). In addition, the networking of individuals through social media provides shared values, leading to a positive impact on trust (Wu et al. 2010). Today, with the expansion of social media and sites, a study of consumer behaviour on these platforms is a research agenda (Liang & Turban 2011) because social media are likely to develop marketing strategies in firms through trust-building mechanisms and affecting customers’ intention to buy online products. Human beings are social and nowadays, consumers are participating in variety of activities, from consuming content to sharing knowledge, experiences, opinions, and involved in discussion with other consumers online (Heinonen, 2011). Today, with the growth of Internet, online social networks have become important communication channels and also virtual communities have emerged. Online world has become a new kind of social communication, connecting people to variety of online communities has been growing during past decade. Groups that may never meet in the physical world but nevertheless they are able to affect behaviour including purchasing decisions (Evans, Jamal & Foxall, 2009). Internet is a social place where created new forum for consumers. Virtual communities, blog, and online social networking sites provide a platform to influence consumers’ purchase decisions (OTX research, 2008). The market share of different online social networking websites have been grown for instance Facebook grew by 0.22 percent from November 2011 to October 2011. YouTube has the strongest growth among online social networking site with a 0.67 percent from November 2011 to October 2011. These measurements showed the membership of online social networks websites have been grown (Hitwise, 2011) Everyday people buy things that are relevant to their needs. At the same time they are making purchasing decisions. Specific consumer behaviour is defined as “the activities people undertake when obtaining, consuming, and disposing of products and services” (Blackwell, Miniard &Engel, 2001). Consumer behaviours are influenced by personal and environmental factors (Blyth, 2008). A central part of consumer behaviour is, consumers’ purchasing decision that included several steps. Generally social networks such as groups or individuals who own the power over consumers can affect consumers’ purchase decision (Solomon, Bamossy, Askegaard & Hogg, 2010). The online social networks provided facilities for consumers to interact with one another, accessing to information, comments, reviews, and rates that can help them for purchasing decisions in different ways.

  1. PROBLEM STATEMENT

As noted in marketing and consumer behaviour literature, information that consumers get from their interpersonal sources invariably influences their decisions towards whether to purchase a particular brand. Even though advertisement commercials and other non-personal messages are also significant in the development of consumer awareness towards brands, products or services, word-of-mouth (WOM)—which is known as an act of exchanging marketing information among different customers—has been seen to play an even more critical role in changing consumer behaviour and attitude toward different products and services. This is mainly because interpersonal sources commonly are seen as more credible and reliable than non-personal or commercial sources. The majority of the online consumers rely on the WOM when they want to purchase a specific product or a service. A study found out that 33% of Twitter users share opinions about companies or products at least once per week. These opinions and views affect other consumers with regards to purchasing products or services. In recent years, social networking has received an increased emphasis on business as well as individuals’ lives. Therefore, this research has originated from the observation that consumers nowadays rely more on WOM than advertisements for buying products and services.

  1. AIMS OF THE STUDY

The major purpose of this study is to examine the impact of social media on consumer behaviour for high value agro products amongst urban populace. Other general objectives of the study are:

1. To examine the extent of using the social media platform in Nigeria.

2. To examine the factors that determines the user’s intention to buy on social media platform.

3. To examine the impact of social media on consumer behaviour for high value agro products.

4. To examine the relationship between social media and consumer behaviour for high value agro products.

5. To examine how social media can influence consumer behaviour for high value agro products.

6. To recommend ways of enhancing consumers behaviour towards buying through social media platforms.

1.4 RESEARCH QUESTIONS

1. What is the extent of using the social media platform in Nigeria?

2. What are the factors that determine the user’s intention to buy on social media platform?

3. What are the impacts of social media on consumer behaviour for high value agro products?

4. What is the relationship between social media and consumer behaviour for high value agro products?

5. How will social media influence consumer behaviour for high value agro products?

6. What are the ways of enhancing consumer’s behaviour towards buying through social media platforms?

1.5 RESEARCH HYPOTHESES

Hypothesis 1

H0: There is no impact of social media on consumer behaviour for high value agro products.

H1: There is a significant impact of social media on consumer behaviour for high value agro products.

Hypothesis 2

H0: There is no significant relationship between social media and consumer behaviour for high value agro products.

H1: There is a significant relationship between social media and consumer behaviour for high value agro products.

1.6 SIGNIFICANCE OF THE STUDY

It has been suggested by the researchers that the consumers might look for information assisting them in deciding the relative significance of the several appraising criteria, and might further seek concepts regarding the degree to which they alternate features that they consider significant. People in the past were confined to sharing information with their neighbours, family or friends; however, now people are able to impact the international community by articulating their personal experiences on the Internet. In accordance with the pertinent researches, the external resources may be either online or offline (Breiger, 2004). Many sources of external search include interpersonal search, and media search. Powered by social software and Web 2.0 tools that support social behaviour to create and recreate social conventions and social contexts, the Internet allows consumers to interact, compare experiences, and exchange ideas with other consumers. Social media is the relational connection that motivates consumers to participate and contribute CGC, which becomes an essential digital asset for purchase decision-making and WOM marketing. In future, the study can be carried out to the other areas of consumer markets and also to other cities of Nigeria. Additionally the study could also be extended to other group of people.

1.7 SCOPE OF THE STUDY 

The study is based on the impact of social media on consumer behaviour for high value agro products amongst urban populace, a case study of civil servants in Makurdi, Benue state.

1.8 LIMITATION OF STUDY

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8 DEFINITION OF TERMS

Social Media: Social media is becoming an integral part of life online as social websites and applications proliferate. Most traditional online media include social components, such as comment fields for users. In business, social media is used to market products, promote brands, and connect to current customers and foster new business.

Consumer: An individual who buys products or services for personal use and not for manufacture or resale. A consumer is someone who can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements.

Consumer Behaviour: Consumer behaviour is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services, including the consumer’s emotional, mental and behavioural responses that precede or follow these activities.

IMPACT OF AGRICULTURAL COOPERATIVES ON FARMERS OUTPUT IN NIGERIA: CASE STUDY OF ENUGU STATE

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

Agriculture is the mainstay of Nigeria economy, the major occupation of the rural people. Its role in the socio-economic development of Nigeria cannot be over- emphasized. It provides employment for more than 80% of the Nigerian population. Umebali (2011) however pointed out that “despite the fact that more than 50% of the total labour force is involved in farming yet output is not enough to feed the ever increasing population” presently the population growth rate is higher than food production level. The roles of co-operatives in agricultural development is an important topic of study and much has been done by scholars and co-operators to justify it prime role of securing economic and political development in the country. The improvement of agricultural production through co-operative has economic effect in that; co- operative enterprise brings better yield which in turn yield better standard of living for the members and their families. Agricultural co-operatives are agricultural-producer-owned coops whose primary purpose is increase member producers’ production and incomes by helping better link with finance, agricultural inputs, information, and output markets. The large-scale introduction of agricultural coops in the 1970s and 2012s, with compulsory membership, was associated with declining agricultural output per capita. In Nigeria, when farmers were allowed to join or leave cooperatives at will in 1991, cooperative membership fell drastically and yields rose. Certainly, there have been cooperative success stories in the region for instance the dairy sector in Kenya, coffee in Nigeria, and cotton in Mali, for example. The examples of Taiwan, India, and Vietnam also show that cooperatives can be instrumental in sector transformation. Unfortunately, to date, no African country has achieved a sustained and large scale increase in staple crop yields as a result of cooperative action and many cooperative development programs have failed to achieve their objectives or have even been counterproductive. The purpose of agricultural cooperatives is to help farmers increase their yields and incomes by pooling their resources to support collective service provisions and economic empowerment. Given their primary remit to contribute to smallholder farmer production, agricultural cooperatives are seen as critical in achieving the government’s development targets in the Growth and Transformation Plan, and focusing on other types of cooperatives requires an alternative framework for analysis. The main categories of agricultural co-operatives fall into mainstream activities of agricultural undertaking including supply of agricultural inputs, joint production and agricultural marketing. Input supply includes the distribution of seeds and fertilizers to farmers. Co-operatives in joint agricultural production assume that members operate the co-operative on jointly owned agricultural plots. The third category consists of joint agricultural marketing of producer crops, where farmers pool resources for the transformation, packaging, distribution and marketing of an identified agricultural commodity. In Nigeria, however, the most popular agricultural co-operative mode has historically been the marketing of agricultural produce after small farmers have individually completed their farm production operations. But in some cases, agricultural co-operatives have combined both input distribution and crop marketing.

  1. STATEMENT OF PROBLEM

In the effort to improve the agricultural sector in Nigeria, the government embarked on various programmes some of which were listed by Iwuchukwu and Igbokwe (2012) as; National Economic Empowerment and Development Strategy (NEEDS) – 2013, National Special Programme of Food Security (NSPFS) – 2011 and the Root and Tuber Expansion Programme (RTEP) -2010. In 2005, it was recorded that agriculture contributed 6.8% out of 8.2% growth rate recorded by the entire non-oil sector (NEEDS, 2008) and about 41% of the gross domestic product (NBS, 2007). However, the alarming growth rate of Nigeria’s population of about 144 million at 3,2% per annum, which would doubled in less than 25 years if not checked (Oladipupo, 2008) is a challenge in a country where more than 90% of the agricultural output is accounted for by small-scale farmers. As such, these small-scale farmers who are characterized by low income, low resource utilization, small and scattered nature of farmlands will find it difficult to meet the teeming need of the increasing population. Farmers have limited access to credit facilities as commercial bank officials who are aware of the risk-prone enterprises often refuse loan to these farmers. Most of the agricultural produce is lost owing to poor post-harvest handling, storage and processing methods.   Cooperative has been regarded as one of the main institutional machineries for empowering the economically weak member of the society. With this official recognition and the determination of government (at all levels) to transform agricultural production and raise the standard of living in the rural areas many agricultural cooperative societies have been formed all over the country. Despite the efforts or contribution made by the cooperative societies towards agricultural development in Nigeria, this effort has not been evenly known and it was in an attempt to address such problem that this study was designed to find out the impact of Agricultural cooperatives on farmers output in Nigeria.

1.3 AIMS OF THE STUDY

The major purpose of this study is to examine the impact of agricultural cooperatives on farmers output in Nigeria. Other general objectives of the study are:

  1. To examine the contributions of farmer’s co- operative societies on the improvement of agriculture.
  2. To examine the socio-economic characteristics of members of the co- operative societies.
  3. To examine the impacts of agricultural cooperatives on farmers output
  4. To examine the contributions of co-operatives to agricultural production in Nigeria.
  5. To examine the relationship between agricultural cooperatives and agricultural production.
  6. To examine constraints that hinders the contribution of co-operatives to agricultural production.
    1. RESEARCH QUESTIONS
  7. What are the contributions of farmer’s co- operative societies on the improvement of agriculture?
  8. What are the socio-economic characteristics of members of the co- operative societies?
  9. What are the impacts of agricultural cooperatives on farmers output?
  10. What are the contributions of co-operatives to agricultural production in Nigeria?
  11. What is the relationship between agricultural cooperatives and agricultural production?
  12. What are the constraints that hinder the contribution of co-operatives to agricultural production?

1.5 RESEARCH HYPOTHESES

H0: There is no significant impact of agricultural cooperatives on farmers output.

H1: There is no significant relationship between agricultural cooperatives and agricultural production.

1.6 SIGNIFICANCE OF THE STUDY

The study will be of good help to policy makers, the government and those who are interested in improving agricultural activities or forming agricultural cooperative activities by which people take place in formalized long-term, deliberate and to great extent, specified form in the social and especially economic share of human endeavour.

1.7    SCOPE OF THE STUDY 

The study is based on the impact of agricultural cooperatives on farmers output in Nigeria.

1.8 LIMITATION OF STUDY

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8 DEFINITION OF TERMS

Impact: A possible future effect or result, something that is suggested without being said directly. The fact, state of being involved in or connected to something.

Agriculture: This is the process of producing food, feed, and fibre by cultivation of certain plant and the raising of domesticated animal. It is a general term per productive activities like growing as crops raising of animal (including poultry) fishing and forestry.

Agricultural Cooperatives: Co-operatives involved in agro-allied activities. The agricultural cooperatives are considered to be economic and social units that aim at the agricultural development

Farmers: An individual whose primary job function involves livestock and/or agriculture. A farmer takes all the necessary steps to ensure proper nourishment of the items that he/she raises and then sells the items to purchasers. Some farmers have been able to capitalize on the need for high-demand products that they produce, such as organic vegetables and livestock.

Output: output refers to the volume of production, while productivity signifies the output in relation to resources expanded. The quantum of production can be increased by employing more resources without increasing productivity and productivity per unit terms can be increased without increasing production by employing less input for the same production level.

GOVERNMENT EXPENDITURE ON AGRICULTURE AND AGRICULTURAL OUTPUT IN NIGERIA (A CASE STUDY OF FEDERAL MINISTRY OF AGRICULTURE, ADAMAWA STATE)

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

The study of history of economic provides us with ample evidence that an agricultural revolution is a fundamental pre-condition for economic development. Agriculture is the cultivation of land, raising and rearing of animals for the purpose of production of food for man, feed for animals and raw materials for industries. It involves fishing, forestry, cropping, and livestock production, processing and marketing of these agricultural products. The agricultural sector has the capability to be the industrial and economic springboard from which a country’s development can take off. The Nigerian topography ranges from mangrove swampland along the coast to tropical rain forest and savannah to the north (NPC, 2009). Nigeria is naturally endowed with abundant resources and with these reserves of human and natural resources, it has the potential to build a prosperous economy and provide for the basic needs of the population. This enormous resource if well managed could support a vibrant agricultural sector capable of ensuring the supply of raw materials for the industrial sector as well as providing gainful employment for the teeming population. Before the discovery of oil in the country in the late 1950s and early 1970s, agriculture was the dominant sector of Nigeria economy. It consisted over 65% of the country’s Gross Domestic Product (GDP) and provided the bulk of the foreign exchange earnings through the export of cash crops. The sector is one of the most important sectors of Nigeria’s economy. It holds a lot of potentials for future economic development of the nation, having played dominant role in the remote past. With the emergence of oil as a major source of government revenue and foreign exchange earner the sector was neglected and hence led to the decline. In the last decade, its impact may not have been so prominent because of the dominating effect of the oil sector which annually contributed not less than 96% of the nation’s total export earnings (CBN, Annual Report and Statement of Accounts, various Issues). The population involved in farming is between 60 and 70% (Nwajiuba, 2012). The total federal expenditure that was allotted to agriculture during 1980 to 2011 was less than 4% (CBN, 2010; JFR, 2012). Public spending (e.g. Budget) is one of the most direct effective instruments used by governments to promote agricultural growth and poverty reduction. Public spending at the federal level and sub-national level follows a basic structure-recurrent spending and capital spending. This spending structure is characterized by different expenditure categories depending on the ministry, department or agency. The nature of support given to agriculture by various governments in the country varied over the years. Before independence, the assistance to the sector was generally aimed at developing the export crops required by the overseas industries. After independence when the national development plans were prepared, agricultural support took a much more formal form, and thus presented a more serious impression of what government intended doing for the sector. However what most of the efforts later turned out to be as can be inferred from the allocations made in the various national development plans and annual budgets, leave much to be desired. When compared to other sectors of the economy, agriculture virtually received the least annual allocations that are often inadequate to put the sector on sustainable grounds. This accounts to a large extent for the poor performance of many institutional reforms and strengthening which were over the years undertaken in the sector. There have been a number of valuable studies on the relationship between agriculture and economic growth. Agriculture resource has been an important sector in the Nigerian economy in the past decades, and is still a major sector despite the oil boom. Ogen (2007) believes that the agricultural sector has a multiplier effect on any nation’s socio-economic and industrial fabric because of the multifunctional nature of agriculture. Ogwuma (2010), studied on public expenditure in agricultural sector using econometric analysis. Based on his report, agricultural financing in Nigeria shows positive relationship between interest rate and funds loan on the level of agricultural output. Using time series data, Lawal (2011) attempted to verify the amount of federal government expenditure on agriculture in the thirty-year period 2007 to 2014. Significant statistical evidence obtained from the analysis showed that government spending does not follow a regular pattern and that the contribution of the agricultural sector to the GDP is in direct relationship with government funding to the sector. Adofu et al. (2012) in their work; effects of government budgetary allocation to agricultural output in Nigeria (2009-2015) show that the percentage, degree or amount of budgetary allocation to agricultural sector has a positive relationship with the total agricultural production in the country. This implies that the more the public spending on agricultural sector, the more the improvements in the performance of the agricultural sector. Also, a large degree of change in agricultural output is accounted for by change in budgetary allocation to agricultural sector. Thus, budgetary allocation to agriculture has a large impact on agricultural output. However, none of these studies employed Granger Causality to analyze the relationship between government expenditure and agric output that is if government expenditure granger causes agric output or agric output granger cause government expenditure. This study is an improvement on other studies on the relationship between government expenditure on agriculture and agricultural output in Nigeria.

1.2 STATEMENT OF THE PROBLEM

Inadequate funding of the agricultural sector has been mentioned by several experts as an obstacle to increased agricultural output (CBN, 2007). However, from a nominal point of view, it is evident that in  Nigeria, government spending on agriculture has continued to increase over the years while empirical evidence have revealed that the performance of the agricultural sector in Nigeria has  been  inadequate. The Nigerian agricultural sector which was the main stay of the economy is no longer performing the lead role it was known for. By mid 1970’s Nigeria’s agriculture started to experience problems, agricultural exports began to decline and food shortages started emerging. From 1975, there was increased revenue from petroleum, government assumed heavier responsibilities for agricultural production, input supply and marketing; in addition to adopting credit control and other policies allocated in favor of agriculture. Agricultural production stagnated at less than 1% annual growth rate between 1970 and 1982. There was a decline in export crop production, while food production increased only marginally.  Thus, domestic food supply had to be augmented with large imports. Food import bill rose from a mere N113.88 million annually in 1970-1974 to N1964 million in 1991. Since 1999 and until recently, Nigeria has been spending an average of 60 million USD on the importation of rice annually (Alkali, 2015).  Indeed in 2015, the agricultural sector performed below the projected 7.2% of budgetary output. Theoretically, input-output theory in economics posits that input determines output. More so, Keynes postulated that increased government spending boosts economic growth. In the case of Nigeria, there has been a conflicting view about spending on agriculture.  Therefore there is need to examine the extent to which government expenditure as an input has affected agricultural production as an output. It is in the light of this that this research was carried out to study government expenditure on agriculture and agricultural output in Nigeria.

1.3 AIMS AND OBJECTIVES OF THE STUDY

The major aim of the study is to examine government expenditure on agriculture and agricultural output in Nigeria.  Other specific objectives of the study include;

  1. To examine the amount of money spend on agricultural sector by government in Nigeria.
  2. To assess the level of agricultural output in Nigeria.
  3. To examine the impact of Public expenditure on agriculture and agricultural output
  4. To examine the ways government policies on agriculture will enhance private and public participants in the sector.
  5. To examine the relationship between Public expenditure on agriculture and agricultural output.
  6. To highlight alternative procedures that can be taken to impure methods of enhancing agricultural output effectively.
    1. RESEARCH QUESTIONS
  7. How is the spending on agricultural sector by government in Nigeria?
  8. What is the level of agricultural output in Nigeria?
  9. What are the impacts of Public expenditure on agriculture and agricultural output?
  10. In what ways will government policies on agriculture enhance private and public participants in the sector?
  11. What is the relationship between Public expenditure on agriculture and agricultural output?
  12. What are the alternative procedures that can be taken to impure methods of enhancing agricultural output effectively?
    1. RESEARCH HYPOTHESES

Hypothesis 1

H0: Public expenditure on agriculture has no significant impact on agricultural output.

H1: Public expenditure on agriculture has a significant impact on agricultural output.

Hypothesis 2

H0: There is no significant relationship between public expenditure on agriculture and agricultural output in Nigeria.

H1: There is a significant relationship between public expenditure on agriculture and agricultural output in Nigeria.

1.6 SIGNIFICANCE OF THE STUDY

The study would be of immense benefit towards the development of agriculture in Nigeria by properly assessing the importance of agriculture to the country at large. The study would also be of immense benefit to students, researchers and scholars who are interested in developing further studies on the subject matter.

1.7 SCOPE AND LIMITATION OF THE STUDY

The study is restricted to government expenditure on agriculture and agricultural output in Nigeria, a case study of federal ministry of agriculture, Adamawa state.

  1. LIMITATION OF THE STUDY

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview)

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

  1. DEFINITION OF TERMS

Government Expenditure: Itrefers to the purchase of goods and services, which include public consumption and public investment, and transfer payments consisting of income transfers (pensions, social benefits) and capital transfer

Agriculture: The science, art, or practice of cultivating the soil, producing crops, and raising livestock and in varying degrees the preparation and marketing of the resulting products.

Agricultural output: is the main measure of individual crop and livestock output. It comprises: (a) Crop enterprise output, which is the total value of crops produced by the farm (other than losses in the field and in store).

EFFECT OF CLIMATE CHANGE ON FARMING PRACTICES IN KEBBI STATE, NIGERIA

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

Climate change and variability are concerns of human being. The recurrent droughts and floods threaten seriously the livelihood of billions of people who depend on land for most of their needs. The global economy is adversely being influenced very frequently due to extreme events such as droughts and floods, cold and heat waves, forest fires, landslips etc. The natural calamities like earthquakes, tsunamis and volcanic eruptions, though not related to weather disasters, may change chemical composition of the atmosphere. It will, in turn, lead to weather related disasters. Increase in aerosols (atmospheric pollutants) due to emission of greenhouse gases such as Carbon Dioxide due to burning of fossil fuels, chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) etc., Ozone depletion and UV-B filtered radiation, eruption of volcanoes, the “human hand” in deforestation in the form of forest fires and loss of wet lands are causal factors for weather extremes. The loss of forest cover, which normally intercepts rainfall and allows it to be absorbed by the soil, causes precipitation to reach across the land eroding top soil and causes floods and droughts. Paradoxically, lack of trees also exacerbates drought in dry years by making the soil dry more quickly. Among the greenhouse gases, CO2 is the predominant gas leading to global warming as it traps long wave radiation and emits it back to the earth surface. The global warming is nothing but heating of surface atmosphere due to emission of greenhouse gases, thereby increasing global atmospheric temperature over a long period of time. Such changes in surface air temperature and consequent adverse impact on rainfall over a long period of time are known as climate change. If these parameters show year-to-year variations or cyclic trends, it is known as climate variability. Agriculture is one of the sectors most affected by ongoing climate change. The wide range of literature on this subject demonstrates that damages caused by climate change can be relevant to both cropping and livestock activities (IPCC, 1990; Adams et al., 1998). Climate change will have a significant effect on the rural landscape and the equilibrium of agrarian and forest ecosystems (Walker and Steffen, 1997; Bruijnzeel, 2004). In fact, climate change can affect different agricultural dimensions, causing losses in productivity, profitability and employment. Food security is clearly threatened by climate change (Sanchez, 2000; Siwar et al., 2013), due to the instability of crop production, and induced changes in markets, food prices and supply chain infrastructure. Moreover, because of the multiple socio-economic and bio-physical factors affecting food systems and, consequently food security, the capacity to adapt food systems to reduce their vulnerability to climate change is not uniform from a spatial point of view (Gregory et al., 2005). However, besides its primary role in producing food and fibres, agriculture performs also other functions, such as the management of renewable natural resources, the construction and protection of landscape, the conservation of biodiversity, and the contribution to maintain socioeconomic activities in marginal and rural areas. Climate change could affects also this multifunctional role of agriculture (Klein et al., 2013). The ongoing effects of climate change require the individuation of mitigation policies to reduce greenhouse gas emissions and identify appropriated adaptation strategies that aim to contain agricultural losses both in market goods and environmental services (such as protection of biodiversity, water management, landscape preservation and so on). These strategies can easily be identified and applied if the economic effects of climate change on agriculture are assessed. However, creating models that are able to assess these effects accurately can present difficulties for several reasons. The first is data availability: while data are frequently available, they are often not disaggregated on the necessary temporal and/or spatial scales. Another reason is that research about the effects of climate change involves multidisciplinary skills and competencies because analyses of the effects of climate change involve many factors such as the consideration of (Bosello and Zang, 2005):

  1. Climate and other induced climate-change environmental aspects,
  2. Biological and plant physiology aspects,
  3. Technical and socioeconomic factors,
  4. Strategies to coping with the effects of climate change,
  5. Impacts on the main economic adjustment mechanisms at the national and international level,
  6. Feedback of the changed conditions on climate.

Economic and agricultural policies play an important role in such analyses, as does the geographical scale (e.g. local, regional or international) considered for the analysis. In addition to these aspects, it is also important to consider the temporal and spatial variability of the events which in turn causes a difficult predictability of future scenarios.

  1. STATEMENT OF PROBLEM

The change in climate over the years has been having lots of impacts on the communities of the various nations of the world. Nigeria has been having her share of the impacts of climate change. These impacts are felt by the farmers of Nigeria and Kebbi State in particular. Climate change is known to be having impacts on farming practices thereby having effects on agricultural production by the farmers. The main trust is to determine the impact of climate change on farming practices in Kebbi State, Nigeria. The question is how have farmers been coping with the impacts of the climate change all these years? When the answer to this question is found, communities will not drift away from their locations for other places. When the farmers are allowed to move away from their various locations due to the impacts of climate change, the consequence will be communities or households drift from one place to another. This will result in hunger, poor health and poor wellbeing of the farmers’ households (Maginness & Stephens 2008 and Lal, Alavalapati & Mercer, 2011). Other results of rural-urban shift due to detrimental climate change effects includesstresses and disturbances such as increased land use change, pollution, wild invasive species (U.S. Global change research programme (USGCRP) 2009). As these shifts continue there will be high pressure on the social amenities in the newly found home, urban area (Rumble, Tubb & Acher, 2008), hence the need for the study to investigate the effects of climate change on farming practices in Kebbi State, Nigeria.  

1.3 AIMS OF THE STUDY

The major purpose of this study is to examine the effect of climate change on farming practices. Other general objectives of the study are:

1. To examine the nature of climate change.

2. To examine the awareness of effects of climate change on farming practices by farmers.

3. To examine the effect of climate change on farming practices.

4. To examine the problems farmers face due to effects of climate change.

5. To examine the relationship between effects of climate change and farming practices.

6. To suggest the strategies for alleviating the impacts of climate change on agricultural practices in Nigeria.

1.4 RESEARCH QUESTIONS

1. What is the nature of climate change?

2. What is the level of awareness of effects climate change on farming practices by farmers?

3. What are the effects of climate change on farming practices?

4. What are the problems farmers faces due to effects of climate change?

5. What is the relationship between effects of climate change and farming practices?

6. What are the strategies for alleviating the impacts of climate change on agricultural practices in Nigeria?

1.5 RESEARCH HYPOTHESES

Hypothesis 1

H0: There is no effect of climate change on farming practices.

H1: There is a significant effect of climate change on farming practices.

Hypothesis 2

H0: There is no significant relationship between effect of climate change and farming practices.

H1: There is a significant relationship between effect of climate change and farming practices.

1.6 SIGNIFICANCE OF THE STUDY

The findings of this study will be beneficial to government, agricultural extension workers, farmers and other researchers. The study will provide information on the perceived extent to which climate change has impacted on farming practices. The information will help government to encourage and support farmers in production activities. The knowledge of the findings would help the government to make policies on how to check the effects of climate change on agriculture in Kebbi state and Nigeria in general. The study will provide information to agricultural extension workers on adaptation strategies, which they could teach the farmers to adapt to in such situations. One of the purposes of the study is to discover the suitable strategies for alleviating the impact of climate. The information would serve as a body of knowledge for the agricultural extension workers who teach the farmers on improved farming practices. The findings of the study would help farmers to reduce the impact of climate change on agricultural practices. The study will suggest to the farmers suitable adaptation options in coping with climate change effects on agriculture. An understanding of the impacts of climate change would help the framers to mount appropriate strategies to keep agricultural practices profitable to matching the varying trend in farming activities. The study could be used as a resource material on climate change and its impact on agriculture for researchers who may be interested in researching on related topics. The research is equipped with the findings on the impacts of climate change on farming practices.

1.7    SCOPE OF THE STUDY 

The study is based on the effect of climate change on farming practices in Kebbi state.

1.8 LIMITATION OF STUDY

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8 DEFINITION OF TERMS

Climate Change: The Intergovernmental Panel on Climate Change (IPCC) defines climate change as a change in the state of the climate that can be identified by changes in the mean and / or the variability of its properties and that persists for an extended period, typically decades or longer.

Farming Farming is the act or process of working the ground, planting seeds, and growing edible plants.

Practices: A method, procedure, process, or rule used in a particular field or profession; a set of these regarded as standard.

AGRICULTURAL FINANCING IN OKRIKA L.G.A RIVERS STATE: CASE STUDY OF FIRST BANK PLC

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

Finance in agriculture is as vital as development of technologies. Technical inputs are often purchased and employed by farmers on condition that decent cash (funds) is obtainable with farmers. Most of the days, farmers suffer from the matter of inadequate monetary state. This case ends up in borrowing from a simple and comfy supply. Skilled cash lenders were the sole supply of credit to agriculture until 1935. They accustomed charge unduly usurious rates of interest and follow serious practices whereas giving loans and sick them. As a result, farmers were heavily burdened with debts and plenty of of them square measure left with perpetuated debts. There have been widespread discontents among farmers against these practices and there have been instances of riots additionally. The role of agricultural credit as an element of production to facilitate economic process and development further because they ought to befittingly channel credit to rural areas for economic development of the poor rural farmers cannot be over stressed. Agriculture contributes immensely to the Nigerian economy in many ways, namely; within the provision of food for the increasing population; offer of adequate raw materials to a growing industrial sector; a serious supply of employment generation, interchange earnings; and, provision of a marketplace for the product of the commercial sector (Okumadawa, 2012; United Nations agency, 2011; Food Agricultural Organization, 2014). The agricultural sector features a robust rural base; therefore, generating concern for agriculture and rural development. Support for agriculture is wide driven by each Government and therefore the public sector, that has established institutional support in style of agricultural analysis, extension, trade goods selling, input offer, and land use legislation, to fast-track development of agriculture and rural economic management (CBN, 2010). The potential role for agriculture in development is to scale back poorness and drive growth for countries whose economies square measure agriculture-based. Growing population size needs agriculture growth compatible to fulfil needed level of food. The modification in consumption pattern with a modification in per capita financial gain level needs additional proteins containing diet. The transition of agriculture from ancient to trendy farming techniques relies on adequate handiness of inputs like certified seeds, balanced use of fertilizers, mechanization, and agricultural finance. Agricultural finance plays a crucial role in enhancing the agricultural productivity in developing countries like African nation. Finance is the back bone for any business, more so for agriculture which has traditionally been a nonmonetary activity for the rural population in Nigeria. Rural credit, though not a direct tool of production, can help break the vicious circle of ‘grow-eat-grow’ by removing financial constraints and accelerating the adoption of new technologies. Credit facilities are thus the integral part of the process of commercialization of the rural economy. The introduction of easy and cheap credit is the quickest way to give boost to the agricultural production. Therefore, it was the prime policy of all successive governments to meet the credit requirements of the farming community of Nigeria. (Saeeda Habib 2015) Credit is an important tool for getting the inputs in time increasing thereby the productivity of the farms particularly those of small ones. The current study was designed to investigate the problems faced by the farmers while getting the loan. It was found that the small farmers faced a lot of problems in getting and returning the loan which must be removed to get better results and hence improving the quality and quantity of the agricultural products (Muhammad Bashir and Muhammad Azeem 2008). The use of credit facilities would therefore translate to higher resource, employment and capacity utilization, increased output and income, and reduce poverty in the rural economy, especially among the farmers and be helpful to increase the food production which would lead to an improvement in the welfare of the farmers and consequently a reduction in their poverty and food insecurity levels (Olagunju, 2010).

1.2 STATEMENT OF PROBLEM

In Nigeria, agriculture remains the mainstay of the economy since it is the largest sector in terms of its share in employment (Philip, Nkonya, Pender and Oni 2009). In an effort to diversify her oil base economy, Nigeria is placing much emphasis on financing other sectors most especially agricultural sector, since agriculture has the potential to stimulate economic growth through provision of raw materials, food, jobs and increased financial stability. It follows that agriculture financing is one of the most important instruments of economic policy for Nigeria, in her effort to stimulate development in all directions. Finance is required by agricultural sector to purchase land, construct buildings, acquire machinery and equipment, hire labour, irrigation etc. In certain cases such loans may also be needed to purchase new and appropriate technologies. Not only can finance remove financial constraints, but it may also accelerate the adoption of new technologies.

1.3 AIMS OF THE STUDY

The major purpose of this study is to examine Agricultural financing in Okrika L.G.A, Rivers state. Other general objectives of the study are:

  1. To examine the structure and trends of Agricultural financing in Okrika.
  2. To examine the sources of credit available to farmers in the area.
  3. To examine the impact of Agricultural finance on agricultural productivity and rural development in Okrika.
  4. To examine the problems related to agricultural finance and agricultural production.
  5. To examine the relationship between agricultural financing and sustainable development.
  6. To suggest ways in which better agricultural financing could guarantee a sustainable development in Nigeria.
    1. RESEARCH QUESTIONS
  7. How is the structure and trends of Agricultural financing in Okrika?
  8. What are the sources of credit available to farmers in the area?
  9. What are the impact of Agricultural finance on agricultural productivity and rural development in Okrika?
  10. What are the problems related to agricultural finance and agricultural production?
  11. What is the relationship between agricultural financing and sustainable development?
  12. What are the ways in which better agricultural financing could guarantee a sustainable development in Nigeria?

1.5 RESEARCH HYPOTHESES

H01: There is a significant impact of Agricultural finance on agricultural productivity and rural development in Okrika.

H02: There is a significant relationship between agricultural financing and sustainable development.

1.6 SIGNIFICANCE OF THE STUDY

The study is aimed at evaluating the financing, policies and initiatives in the agricultural sector in Nigeria, for a sustainable development. The findings from this study will help various stages of Government in Nigeria, thereby helping in policy statement, especially now that the economy is begging for diversification. The Private sectors, Non-Governmental Organizations, farmers and potential farmers will find the findings of the study useful for their decision making process. Researchers and potential ones are likely to benefit from this study. In essence, the study will be beneficial and add knowledge to students so as to enlighten them more on Agricultural financing. The study shall therefore serve as a reference for further research.

1.7    SCOPE OF THE STUDY 

The study is based on Agricultural financing in Okrika L.G.A, Rivers state: case study of First Bank Plc

1.8 LIMITATION OF STUDY

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8 DEFINITION OF TERMS

Agricultural Finance: “Agricultural finance is the study of financing and liquidity services credit provides to farm borrowers. It is also considered as the study of those financial intermediaries who provide loan funds to agriculture and the financial markets in which these intermediaries obtain their loan able funds”

Rural Finance: Is a spatial concept, which encompasses the provision of different financial services to households and enterprises in rural areas for both productive and consumptive purposes. Rural financial services include loans, savings, payment and money transfer services, and risk management (e.g. insurance, hedging and guarantees).

AGRICULTURAL DEVELOPMENT AS BEDROCK OF ECONOMIC DEVELOPMENT IN NIGERIA (A CASE STUDY OF IKOM L.G.A, CROSS RIVER STATE)

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

Nigeria as a sovereign state is naturally endowed with abundant resources, including both human and material resources. The nation’s resources should be fully developed in such a manner that is possible with the mineral deposits of the nation as a whole, which can only be harnessed by rational and efficient utilization of the natural resources. Thus, the importance of resources in any given economy depends on the roles such resources play in economic growth and development of the nation. In developing economies like Nigeria, agriculture constitutes backbone and critical sector of the economy, as the contributions of the sector to the growth and sustainable development of the country cannot be overemphasized. It contributes immensely to economic growth and development of the economy in various ways, such as creation of employment opportunities for the country’s workforce, provides food requirement of the economy and industrial raw materials to industries, generates foreign exchange earnings and revenue to the government, and as well eradicates extreme poverty in the country. More so, (Abayomi, 2009) while explaining the nexus between agriculture and economic growth revealed that poor performance of economic growth in an economy especially, in the developing economies is due to slump in agricultural sector performance. Agricultural sector in Nigeria has overtime become an important sector of the economy. It has remained the main sector of Nigerian economy despite the discovery of oil in commercial quantities and its attendant boom since 1970s. For example, despite agricultural sector neglect by government at the emergence of oil in 1970s, the sector remained the major employment segment of the economy thereby employing over 60% of the unemployed workforce in country, reduces extreme poverty and as well promotes economic growth of the economy. In the same view, (Oluwasanmi, 2011) argued that efficient and strong agricultural sector strengthens countries to provide for its fast growing population, create jobs for their workforce, eradicate absolute poverty, feed industries with the required industrial raw materials, generates foreign exchange earnings and revenue to government. This means that agriculture is growth-led factor, which has multiplier effect on socio-economic and industrial development of any economy due to its various contributions to the growth of domestic economy. Similarly, [Olukoya, 2007,Okolo, 2011] and [Emeka, 2007] maintained that agriculture as the most critical sector of the Nigeria’s economy shield several benefits which is capable of facilitating economic growth and development of the nation, just as the sector did in the past decades. The sector’s contribution to total real gross domestic product (RGDP) ranges from 30% to 42%, and has as well engaged over 65% of the country’s total workforce. Agriculture in developing economies like Nigeria is conceived as a prevailing economic activities or occupation from which livelihood can be derived by the greater number of the population of the country. Hence, a business or an industry employs the knowledge of various sciences in the production of food, feed, fiber and fuel. The definition therefore, recognizes the fact that plants and animals were originally grown and developed in an economy without human interference. But with the evolvement of agriculture, human quest to increase food production for the growing population emerged. In that, people began to exploit the growth of plants and animals to produce the type and quantity of food and other products that would meet needs of human population in the society. According to [Ernest, 2014], agriculture contributes to growth and development of an economy in four main ways, and these include product contribution, factor contribution, market contribution, as well as foreign exchange contribution. In Nigeria, the contribution of the agricultural sector to the growth of the domestic economy was relatively significant prior to early 1970s; and however, as the oil sector emerges as the major export earner of the economy, the agricultural sector’s contribution to the growth of the economy declined from 60% in the earlier 1970s to 40%, 30% and less than 26% between 2000 and 2007. Export crops like cocoa, cotton, groundnut, rubber, palm oil and palm kernel that initially contributed up to 65% and 75% of the foreign exchange earnings and which was the main source of revenue of the government through export product, suddenly declined its contribution to total RGDP due to agricultural sector neglect, as oil sector emerged in the economy. The contribution of the sector to total real gross domestic product in Nigeria declined from 48% in 1970s to 20% and 19% between 1980 and 1985. The decline in the sector’s performance to total RGDP was attributed to high revenue receipt recorded from the sales of crude oil products during the era of oil boom during 1970s to early 1980s, occasioned by the Middle East war of 1973.

  1. STATEMENT OF PROBLEM

With the agricultural sector being so productive with arguably massive potential, why then has it been neglected? The answer to this question prompts the motivation for this study. Recent literature is attempting to estimate the relationship between the agricultural sector and economic development. We argued that this methodology is flawed in the sense that the relationship between the agricultural sector and economic development is best captured over time. There is a gap in explaining the real effect of the agricultural sector on economic growth in Nigeria. Historically, the root of the crises in the Nigerian economy lies in the neglect of the agricultural sector by the Federal Government towards developing dependence on a mono-cultural economy based on oil. This study aims to fill this gap. By extension, we would evaluate the possible reasons for the neglect of this sector beyond the oil boom in 1970s and the impediments to the growth of the sector in Nigeria.

  1. AIMS AND OBJECTIVES OF THE STUDY

The major aim of the study is to examine agricultural development as bedrock of economic development in Nigeria.  Other specific objectives of the study include;

  1. To examine the need for effective agricultural development in Nigeria.
  2. To assess the level of agricultural development in Nigeria.
  3. To examine the importance of agriculture to the economy of Nigeria.
  4. To examine the impact of agricultural development on economic development in Nigeria.
  5. To examine the relationship between agricultural development and economic development in Nigeria.
  6. To recommend ways of improving agricultural development in Nigeria.
    1. RESEARCH QUESTIONS
  7. What is the need for effective agricultural development in Nigeria?
  8. What is the level of agricultural development in Nigeria?
  9. What is the importance of agriculture to the economy of Nigeria?
  10. What are the impacts of agricultural development on economic development in Nigeria?
  11. What is the relationship between agricultural development and economic development in Nigeria?
  12. What are the ways of improving agricultural development in Nigeria?
    1. RESEARCH HYPOTHESES

Hypothesis 1

H0: There is no significant impact of agricultural development on economic development in Nigeria.

H1: There is a significant impact of agricultural development on economic development in Nigeria.

Hypothesis 2

H0: There is no significant relationship between agricultural development and the economic development in Nigeria.

H1: There is a significant relationship between agricultural development and the economic development in Nigeria.

  1. SIGNIFICANCE OF THE STUDY

The study would be of immense benefit towards the development of agriculture in Nigeria by properly assessing the importance of agriculture to the country at large. The study would also be of immense benefit to students, researchers and scholars who are interested in developing further studies on the subject matter.

  1. SCOPE AND LIMITATION OF THE STUDY

The study is restricted to agricultural development as bedrock of economic development in Nigeria, a case study of Ikom L.G.A, Cross River state.

  1. LIMITATION OF THE STUDY

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview)

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

  1. DEFINITION OF TERMS

Agriculture: The science, art, or practice of cultivating the soil, producing crops, and raising livestock and in varying degrees the preparation and marketing of the resulting products.

Economic development: Is the process by which a nation improves the economic, political, and social well-being of its people. The term has been used frequently by economists, politicians, and others in the 20th and 21st centuries. It is a policy intervention endeavour with aims of improving the economic and social well-being of people, economic growth is a phenomenon of market productivity and rise in GDP.

AGRICULTURAL FINANCING IN OKRIKA L.G.A RIVERS STATE: CASE STUDY OF FIRST BANK PLC

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

Finance in agriculture is as vital as development of technologies. Technical inputs are often purchased and employed by farmers on condition that decent cash (funds) is obtainable with farmers. Most of the days, farmers suffer from the matter of inadequate monetary state. This case ends up in borrowing from a simple and comfy supply. Skilled cash lenders were the sole supply of credit to agriculture until 1935. They accustomed charge unduly usurious rates of interest and follow serious practices whereas giving loans and sick them. As a result, farmers were heavily burdened with debts and plenty of of them square measure left with perpetuated debts. There have been widespread discontents among farmers against these practices and there have been instances of riots additionally. The role of agricultural credit as an element of production to facilitate economic process and development further because they ought to befittingly channel credit to rural areas for economic development of the poor rural farmers cannot be over stressed. Agriculture contributes immensely to the Nigerian economy in many ways, namely; within the provision of food for the increasing population; offer of adequate raw materials to a growing industrial sector; a serious supply of employment generation, interchange earnings; and, provision of a marketplace for the product of the commercial sector (Okumadawa, 2012; United Nations agency, 2011; Food Agricultural Organization, 2014). The agricultural sector features a robust rural base; therefore, generating concern for agriculture and rural development. Support for agriculture is wide driven by each Government and therefore the public sector, that has established institutional support in style of agricultural analysis, extension, trade goods selling, input offer, and land use legislation, to fast-track development of agriculture and rural economic management (CBN, 2010). The potential role for agriculture in development is to scale back poorness and drive growth for countries whose economies square measure agriculture-based. Growing population size needs agriculture growth compatible to fulfil needed level of food. The modification in consumption pattern with a modification in per capita financial gain level needs additional proteins containing diet. The transition of agriculture from ancient to trendy farming techniques relies on adequate handiness of inputs like certified seeds, balanced use of fertilizers, mechanization, and agricultural finance. Agricultural finance plays a crucial role in enhancing the agricultural productivity in developing countries like African nation. Finance is the back bone for any business, more so for agriculture which has traditionally been a nonmonetary activity for the rural population in Nigeria. Rural credit, though not a direct tool of production, can help break the vicious circle of ‘grow-eat-grow’ by removing financial constraints and accelerating the adoption of new technologies. Credit facilities are thus the integral part of the process of commercialization of the rural economy. The introduction of easy and cheap credit is the quickest way to give boost to the agricultural production. Therefore, it was the prime policy of all successive governments to meet the credit requirements of the farming community of Nigeria. (Saeeda Habib 2015) Credit is an important tool for getting the inputs in time increasing thereby the productivity of the farms particularly those of small ones. The current study was designed to investigate the problems faced by the farmers while getting the loan. It was found that the small farmers faced a lot of problems in getting and returning the loan which must be removed to get better results and hence improving the quality and quantity of the agricultural products (Muhammad Bashir and Muhammad Azeem 2008). The use of credit facilities would therefore translate to higher resource, employment and capacity utilization, increased output and income, and reduce poverty in the rural economy, especially among the farmers and be helpful to increase the food production which would lead to an improvement in the welfare of the farmers and consequently a reduction in their poverty and food insecurity levels (Olagunju, 2010).

1.2 STATEMENT OF PROBLEM

In Nigeria, agriculture remains the mainstay of the economy since it is the largest sector in terms of its share in employment (Philip, Nkonya, Pender and Oni 2009). In an effort to diversify her oil base economy, Nigeria is placing much emphasis on financing other sectors most especially agricultural sector, since agriculture has the potential to stimulate economic growth through provision of raw materials, food, jobs and increased financial stability. It follows that agriculture financing is one of the most important instruments of economic policy for Nigeria, in her effort to stimulate development in all directions. Finance is required by agricultural sector to purchase land, construct buildings, acquire machinery and equipment, hire labour, irrigation etc. In certain cases such loans may also be needed to purchase new and appropriate technologies. Not only can finance remove financial constraints, but it may also accelerate the adoption of new technologies.

1.3 AIMS OF THE STUDY

The major purpose of this study is to examine Agricultural financing in Okrika L.G.A, Rivers state. Other general objectives of the study are:

  1. To examine the structure and trends of Agricultural financing in Okrika.
  2. To examine the sources of credit available to farmers in the area.
  3. To examine the impact of Agricultural finance on agricultural productivity and rural development in Okrika.
  4. To examine the problems related to agricultural finance and agricultural production.
  5. To examine the relationship between agricultural financing and sustainable development.
  6. To suggest ways in which better agricultural financing could guarantee a sustainable development in Nigeria.
    1. RESEARCH QUESTIONS
  7. How is the structure and trends of Agricultural financing in Okrika?
  8. What are the sources of credit available to farmers in the area?
  9. What are the impact of Agricultural finance on agricultural productivity and rural development in Okrika?
  10. What are the problems related to agricultural finance and agricultural production?
  11. What is the relationship between agricultural financing and sustainable development?
  12. What are the ways in which better agricultural financing could guarantee a sustainable development in Nigeria?

1.5 RESEARCH HYPOTHESES

H01: There is a significant impact of Agricultural finance on agricultural productivity and rural development in Okrika.

H02: There is a significant relationship between agricultural financing and sustainable development.

1.6 SIGNIFICANCE OF THE STUDY

The study is aimed at evaluating the financing, policies and initiatives in the agricultural sector in Nigeria, for a sustainable development. The findings from this study will help various stages of Government in Nigeria, thereby helping in policy statement, especially now that the economy is begging for diversification. The Private sectors, Non-Governmental Organizations, farmers and potential farmers will find the findings of the study useful for their decision making process. Researchers and potential ones are likely to benefit from this study. In essence, the study will be beneficial and add knowledge to students so as to enlighten them more on Agricultural financing. The study shall therefore serve as a reference for further research.

1.7    SCOPE OF THE STUDY 

The study is based on Agricultural financing in Okrika L.G.A, Rivers state: case study of First Bank Plc

1.8 LIMITATION OF STUDY

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8 DEFINITION OF TERMS

Agricultural Finance: “Agricultural finance is the study of financing and liquidity services credit provides to farm borrowers. It is also considered as the study of those financial intermediaries who provide loan funds to agriculture and the financial markets in which these intermediaries obtain their loan able funds”

Rural Finance: Is a spatial concept, which encompasses the provision of different financial services to households and enterprises in rural areas for both productive and consumptive purposes. Rural financial services include loans, savings, payment and money transfer services, and risk management (e.g. insurance, hedging and guarantees).

AGRICULTURAL DEVELOPMENT AS BEDROCK OF ECONOMIC DEVELOPMENT IN NIGERIA (A CASE STUDY OF IKOM L.G.A, CROSS RIVER STATE)

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

Nigeria as a sovereign state is naturally endowed with abundant resources, including both human and material resources. The nation’s resources should be fully developed in such a manner that is possible with the mineral deposits of the nation as a whole, which can only be harnessed by rational and efficient utilization of the natural resources. Thus, the importance of resources in any given economy depends on the roles such resources play in economic growth and development of the nation. In developing economies like Nigeria, agriculture constitutes backbone and critical sector of the economy, as the contributions of the sector to the growth and sustainable development of the country cannot be overemphasized. It contributes immensely to economic growth and development of the economy in various ways, such as creation of employment opportunities for the country’s workforce, provides food requirement of the economy and industrial raw materials to industries, generates foreign exchange earnings and revenue to the government, and as well eradicates extreme poverty in the country. More so, (Abayomi, 2009) while explaining the nexus between agriculture and economic growth revealed that poor performance of economic growth in an economy especially, in the developing economies is due to slump in agricultural sector performance. Agricultural sector in Nigeria has overtime become an important sector of the economy. It has remained the main sector of Nigerian economy despite the discovery of oil in commercial quantities and its attendant boom since 1970s. For example, despite agricultural sector neglect by government at the emergence of oil in 1970s, the sector remained the major employment segment of the economy thereby employing over 60% of the unemployed workforce in country, reduces extreme poverty and as well promotes economic growth of the economy. In the same view, (Oluwasanmi, 2011) argued that efficient and strong agricultural sector strengthens countries to provide for its fast growing population, create jobs for their workforce, eradicate absolute poverty, feed industries with the required industrial raw materials, generates foreign exchange earnings and revenue to government. This means that agriculture is growth-led factor, which has multiplier effect on socio-economic and industrial development of any economy due to its various contributions to the growth of domestic economy. Similarly, [Olukoya, 2007,Okolo, 2011] and [Emeka, 2007] maintained that agriculture as the most critical sector of the Nigeria’s economy shield several benefits which is capable of facilitating economic growth and development of the nation, just as the sector did in the past decades. The sector’s contribution to total real gross domestic product (RGDP) ranges from 30% to 42%, and has as well engaged over 65% of the country’s total workforce. Agriculture in developing economies like Nigeria is conceived as a prevailing economic activities or occupation from which livelihood can be derived by the greater number of the population of the country. Hence, a business or an industry employs the knowledge of various sciences in the production of food, feed, fiber and fuel. The definition therefore, recognizes the fact that plants and animals were originally grown and developed in an economy without human interference. But with the evolvement of agriculture, human quest to increase food production for the growing population emerged. In that, people began to exploit the growth of plants and animals to produce the type and quantity of food and other products that would meet needs of human population in the society. According to [Ernest, 2014], agriculture contributes to growth and development of an economy in four main ways, and these include product contribution, factor contribution, market contribution, as well as foreign exchange contribution. In Nigeria, the contribution of the agricultural sector to the growth of the domestic economy was relatively significant prior to early 1970s; and however, as the oil sector emerges as the major export earner of the economy, the agricultural sector’s contribution to the growth of the economy declined from 60% in the earlier 1970s to 40%, 30% and less than 26% between 2000 and 2007. Export crops like cocoa, cotton, groundnut, rubber, palm oil and palm kernel that initially contributed up to 65% and 75% of the foreign exchange earnings and which was the main source of revenue of the government through export product, suddenly declined its contribution to total RGDP due to agricultural sector neglect, as oil sector emerged in the economy. The contribution of the sector to total real gross domestic product in Nigeria declined from 48% in 1970s to 20% and 19% between 1980 and 1985. The decline in the sector’s performance to total RGDP was attributed to high revenue receipt recorded from the sales of crude oil products during the era of oil boom during 1970s to early 1980s, occasioned by the Middle East war of 1973.

  1. STATEMENT OF PROBLEM

With the agricultural sector being so productive with arguably massive potential, why then has it been neglected? The answer to this question prompts the motivation for this study. Recent literature is attempting to estimate the relationship between the agricultural sector and economic development. We argued that this methodology is flawed in the sense that the relationship between the agricultural sector and economic development is best captured over time. There is a gap in explaining the real effect of the agricultural sector on economic growth in Nigeria. Historically, the root of the crises in the Nigerian economy lies in the neglect of the agricultural sector by the Federal Government towards developing dependence on a mono-cultural economy based on oil. This study aims to fill this gap. By extension, we would evaluate the possible reasons for the neglect of this sector beyond the oil boom in 1970s and the impediments to the growth of the sector in Nigeria.

  1. AIMS AND OBJECTIVES OF THE STUDY

The major aim of the study is to examine agricultural development as bedrock of economic development in Nigeria.  Other specific objectives of the study include;

  1. To examine the need for effective agricultural development in Nigeria.
  2. To assess the level of agricultural development in Nigeria.
  3. To examine the importance of agriculture to the economy of Nigeria.
  4. To examine the impact of agricultural development on economic development in Nigeria.
  5. To examine the relationship between agricultural development and economic development in Nigeria.
  6. To recommend ways of improving agricultural development in Nigeria.
    1. RESEARCH QUESTIONS
  7. What is the need for effective agricultural development in Nigeria?
  8. What is the level of agricultural development in Nigeria?
  9. What is the importance of agriculture to the economy of Nigeria?
  10. What are the impacts of agricultural development on economic development in Nigeria?
  11. What is the relationship between agricultural development and economic development in Nigeria?
  12. What are the ways of improving agricultural development in Nigeria?
    1. RESEARCH HYPOTHESES

Hypothesis 1

H0: There is no significant impact of agricultural development on economic development in Nigeria.

H1: There is a significant impact of agricultural development on economic development in Nigeria.

Hypothesis 2

H0: There is no significant relationship between agricultural development and the economic development in Nigeria.

H1: There is a significant relationship between agricultural development and the economic development in Nigeria.

  1. SIGNIFICANCE OF THE STUDY

The study would be of immense benefit towards the development of agriculture in Nigeria by properly assessing the importance of agriculture to the country at large. The study would also be of immense benefit to students, researchers and scholars who are interested in developing further studies on the subject matter.

  1. SCOPE AND LIMITATION OF THE STUDY

The study is restricted to agricultural development as bedrock of economic development in Nigeria, a case study of Ikom L.G.A, Cross River state.

  1. LIMITATION OF THE STUDY

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview)

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

  1. DEFINITION OF TERMS

Agriculture: The science, art, or practice of cultivating the soil, producing crops, and raising livestock and in varying degrees the preparation and marketing of the resulting products.Economic development: Is the process by which a nation improves the economic, political, and social well-being of its people. The term has been used frequently by economists, politicians, and others in the 20th and 21st centuries. It is a policy intervention endeavour with aims of improving the economic and social well-being of people, economic growth is a phenomenon of market productivity and rise in GDP.