Effect Of Under capitalization Of Agriculture On Nigeria's Economy (1980-2010)

ABSTRACT

The broad objective 'of this study was to analyze the effect of undercapitalization of agriculture on Nigeria's economy and identify the factors that influenced agricultural output performance, and food imports. The study covered I 980 -201 0 period. Secondary data were used for the study. The data were analyzed by the use of descriptive statistics and econometric methods. Findings revealed that the percentage share of agriculture in federal government total budgetary allocations is low. The overall average percentage share of the agricultural sector in total budgetary allocation in Nigeria between 1980 and 20 IO was 7.22 percent. Agricultural output, and food imports were influenced by the value of government budgetary allocation to agriculture among other factors. The rate of growth of agriculture depends on how much capital investment made by the government in agriculture. The conclusion of this study is that undercapitalization of agriculture in Nigeria should be avoided. The goal of the government should be to allocate adequate capital to agriculture to enable farmers' transit from subsistence to commercial orientation in a sustainable manner and thereby better Nigeria's economy. . .