Agricultural sector output contribution to Economic Growth in Nigeria: An Examination of the Critical Nexus

An Examination of the Critical Nexus

Abstract

This study delves into the agricultural sector’s contribution to Nigeria’s economic growth, employing the pooled least squares techniques to analyze the relationship between gross domestic products (GDP), agricultural output, credit to private sector, and inflation rate from 1990 to 2020. The results show a positive, albeit insignificant, link between agricultural output and GDP. The study suggests that agricultural friendly government policies are crucial to stem the leakages in agricultural output and foster inclusive growth. Recommended policies include; building storage facilities like silos to ensure year round availability of agricultural products at stable rates. Furthermore, the study emphasizes the need for additional research on leveraging agriculture to reduce unemployment in Nigeria. This is particularly important, given that the agricultural sector remains the largest employer in Nigeria, accounting for over 36% of the labour force.