1. 1 BACKGROUND OF STUDY
Agribusiness is a systemic and controlled usage of life being and the environment in the betterment of human status. It besides covers farming. farming. cultivation of workss. animate beings. and other life signifiers for nutrient. fibre. bio-fuel. and drugs. Agribusiness is the scientific discipline. art. or business concerned with cultivating land. raising harvests. and feeding. genteelness. and raising farm animal ; agriculture ( Dictionary. com ) . It besides is the pattern of cultivating and farming animate beings. nutrient and other life signifiers that are used to prolong life. It is a scientific discipline and was key to the rise of human civilizations as agribusiness enabled adult male to be able to feed himself and bring forth excesss ( Ask. com ) . Economic Growth. defined as the increasing capacity of an economic system to bring forth goods and services. compared from one period of clip to another. Economic growing can be measured in nominal footings. which include rising prices. or in existent footings. which are adjusted for rising prices. For comparing one economic growing to another. GDP or GNP per capita should be used to take into history population difference between states ( Investopedia ) . The growing of an economic system is thought of. non merely as an addition in productive capacity but besides as an betterment in the quality of life of the people of that economic system.

The agricultural sector plays a major function in the proviso of nutrient. security of natural stuffs for industries. employment. market for industrial goods such as agro-chemical. tractor and fertilisers. and foreign exchange within the context of capital formation. Before oil. Nigeria had oil ; with oil. she had extra chance of harvests like Indian potato. chocolate and gum elastic. These harvests were cultivated in big measures and exported to Europe and America in the pre-1960s and early-60s. ( Nigeria’s establishing male parents built the state from agricultural resources ; but since the yearss of the oil roar we have abandoned all the great chances that come with the concern of Agriculture ) . With Military incursions into Nigerian authorities and the dependance on crude oil merchandises as the foremost foreign exchange earner. the attending to the agricultural sector dwindled. Nigeria’s groundnut pyramids disappeared. the oil thenar plantations vanished and farming went back to the subsistent degree. With an increasing population. it became progressively hard to feed the multitudes. and the state resorted to importing nutrient to supplement the 1s grown at place.

The agricultural sector has played a important function in the societal and economic growing and development of Nigeria ; nevertheless. its full potency has non been reached. In the last two decennaries. authorities has paid really small attending to the growing of the agricultural sector. though there has been increased farm end product at great cost through major undertakings. monolithic investings in rural substructure and the debut of modern seed assortments and chemicals. The agricultural sector is yet to tout of any part whereas about 75 % of export net incomes in the seventiess were from agribusiness. Agriculture as a major sector of the Nigerian economic system can supply up to 70 % of the population with employment. The sector in recent times is being transformed by commercialisation at the little. medium and large-scale endeavor degrees. Major harvests include beans. benne. Anacardium occidentale nuts. manioc. chocolate beans. Indian potatos. gum Arabic. kolanut. corn ( maize ) . melon. millet. palm meat. palm oil. plantains. rice. gum elastic. sorghum. soyabeans. and yam in the country of land cultivation. and Fish Farming. Piggery and Poultry in the country of carnal farming. but this is yet to guarantee the nature of nutrient security and adequate foreign exchange net incomes desired.

Wikipedia recorded that in 1990. 82 million hectares out of Nigeria’s entire land country of about 91million hectares were found to be cultivable. although merely 42 % of arable country was farmed ; go forthing us with fresh cultivable land of approximately 58 % . In 2013. the Agricultural Transformation Agenda ( ATA ) was introduced by the Federal Ministry of Agriculture. The Agricultural Transformation Agency ( ATA ) has a great potency in heightening the function of agribusiness as an engine of inclusive growing taking to rural employment. Wealth creative activity. and variegation of the economic system. A major policy achievement in the sector is the release of seed and fertiliser supply. which had until now been controlled by the federal authorities. undermined the private sector and did non present the inputs to genuine husbandmans. Since September 2011. fertilisers and seeds are being sold by the companies straight to husbandmans. Lending committednesss from commercial Bankss has been leveraged utilizing warrants issued by the Ministry of Finance. In order to supply a legal model for the constitution and sempiternity of staple harvest processing zones. and transform the Nigerian agricultural sector with important multiplier effects on the full economic system. an Act to supply a legal model for the constitution of Staple Crop Processing Zones ( SCPZ ) is presently being drafted prepared to the National Assembly for acceptance.

Agribusiness has a fastness in any economic system. for without it. a state will ever hold to depend on foreign states to feed her population thereby exposing herself to the issues of nutrient security. Furthermore. the growing in the agricultural sector could be a accelerator for national end product through its consequence on rural incomes and proviso of resources for transmutation into the industrialised economic system. Therefore ; it is clear that agricultural growing has played a historically of import function in the procedure of economic development as grounds from industrialised states like China and India. States that are merely quickly developing today have besides indicated that the sector has been the engine that contributes to the growing of the overall economic system like China. 1. 2STATEMENT OF PROBLEM

Agribusiness is the individual largest subscriber to the wellbeing of the rural hapless in Nigeria. prolonging about 86 % of rural family in the state. Improved agricultural development and growing. can offer a tract out of poorness. But until really late. agribusiness has suffered the consequence of several decennaries of disregard. Nigeria’s agricultural policies have been inconsistent. uncoordinated and ad hoc. After really slow growing during the 1970s and 1980s. agricultural growing began to pick during the 1990s and. since 2000. has averaged 5. 6 per annum. However. even with the rapid agribusiness growing of the past decennary. Nigeria still has one of the highest poorness rates in the universe. A paradigm displacement towards a sound evidence-based policymaking procedure is needed to advance more just. gender sensitive and environmentally sustainable growing in the agricultural sector. The recent nutrient monetary value rush has made this displacement even more of import.

It is clear that Nigeria has an cultivable land of about 82 million hectares and merely 48 % has been farmed. It is besides clear that the agricultural sector is prolonging approximately 86 % of the rural family in the state. There has besides been a deficiency of coordination of agribusiness policies. The ground Nigeria still has one of the highest evaluations of poorness in the universe. This research work is targeted at accommodating the chance inherent in the Nigeria’s poor/rural population ; vis-a-vis the monolithic uncultivated cultivable land through little scale agricultural support from the authorities. It will further re-echo bing solutions every bit good as provide extra information on our challenges in agribusiness as a state. with a position to supplying thought arousing and inciteful analysis of the chances inherent in an agricultural based economic system. peculiarly for a blest state like Nigeria with quality cultivable land. and adequate H2O resources to back up carnal farming. 1. 3OBJECTIVES OF THE STUDY

The chief aim of this research work is to analyze the functions of agricultural sector as an gas pedal for the economic growing in Nigeria. Specific aims:
The survey is aimed at:
1. Measuring the assorted policies and programmes used in advancing the agricultural sector in Nigeria. failures and successes. 2. Measuring the public presentation of the agricultural sector of Nigeria over the old ages. that is1980-2012 and the manner frontward. 3. Making suggestions as to how the full potency of the sector could be realized in line with the successful policies and other developments. 1. 4RESEARCH Question

This survey seeks to happen replies to the undermentioned research inquiries ; 1. What are the functions of the agricultural sector in dealingss to the growing of the Nigerian economic system? 2. What attempts has the authorities made to reconstruct the agricultural sector in Nigeria? 3. What is the public presentation of the agricultural sector of Nigeria over the old ages? 4. What could be done to do the agricultural sector achieve its full potency?

1. 5RESEARCH HYPOTHESIS
The research hypothesis is to make a relationship between the growing on agricultural sector and the Nigerian economic system every bit good as the opposite relationship between them. = Growthof the agricultural sector playsno important functions in the economic system. = Growthof the agricultural sector plays important functions in the economic system. 1. 6SIGNIFICANCE OF THE STUDY

The significance of this survey depends on the fact that with an improved economic system. Nigeria stands to derive in its effects towards economic growing. It is advantageous to both the authorities and citizens ; in the sense that its serves as a usher for future governmental policy on agribusiness and when this is good implemented. we will detect that the public assistance and criterions of life of the citizens will be improved. 1. 7THE SCOPE AND LIMITATION OF THE STUDY

This survey examines the timeframe of 1980-2012. The intent of taking this period is to through empirical observation prove the significance or the extent to which the agricultural sector contributes to the economy’s growing despite the several old ages of government’s disregard. and to re-emphasise the demand to properly coordinate Government policies and accommodate the chance of our rural population with the available natural resources. peculiarly the cultivable land for optimal use and the reclamation effects towards stabilising the agricultural sector. The public presentation of Nigeria’s agricultural sector shall be evaluated in item every bit good as attempts of the authorities at reconstructing the sector examined. This survey will besides travel farther to discourse the major restraints on the public presentation of the Nigeria agricultural sector. The restrictions are due to miss of available informations information. clip factor. and cost involved in transporting out this type of research. 1. 8DEFINITION OF TERMS.

I. Capital Formation ; this can be defined as the transportation of nest eggs from persons or families to the concern sector. straight through investing or indirectly through Bankss. two. Husbandry ; this is defined as the scientific discipline of raising harvests or nutrient animate beings or the cultivation and production of comestible harvests or of animate beings for nutrient. three. Labor-intensive ; is a procedure or industry that requires big sum of labor to bring forth its goods and services. four. Global Warming ; an addition in earth’s mean atmospheric temperature that causes corresponding alterations in clime and that may ensue from the nursery consequence. v. Greenhouse Effect ; an atmospheric warming phenomenon. caused by short moving ridge solar radiation being readily transmitted inward through the earth’s atmosphere but longer wave length heat radiation less readily transmitted outwards. owing its soaking up by atmospheric C dioxide. H2O vapor. methane. and other gases ; therefore the lifting degree of C dioxide is viewed with concern.

Chapter TWO
2. 1 Introduction
This subdivision presents the theoretical. methodological and empirical reappraisal of literature. The theoretical reappraisal covers assorted theories on the capable affair. while the methodological reappraisal besides cover assorted methodological issues used in the past surveies and the empirical reappraisal present assorted findings that consequences from the methodological analysiss. 2. 2THEORETICAL REVIEW OF LITERATURE

The survey of economic history provides us with ample grounds that an agricultural revolution is a cardinal pre-condition for economic development ( Eicher and Witt. 1964. Olusanmi. 1966. Jones and Wolff. 1969 ) . The agricultural sector has the potencies to be the industrial and economic spring board from which a country’s development can take off. Indeed. agricultural activities are normally concentrated in the less developed rural transmutation. redistribution. poorness relief and socio-economic development ( Stewart. 2000 ) . Agribusiness can be advanced beyond its primary map of providing nutrient and its primary cultural sector has the possible to determine the landscape. warrant the sustainable direction of renewable resources of many rural countries ( Humbert. 2000 ) . In fact. through its different domains of activities at macro and micro degrees. the agricultural sector is strategically positioned to hold a higher multiplier consequence on any nation’s pursuit for socio-economic and industrial development. It is really obvious that a sustainable agricultural growing has been extremely instrumental in Brazil’s rapid rural transmutation. the authorization of Brazilian provincial and the relief of low poorness. Interestingly. the Nigerian economic system like that of Brazil during the first decennary after independency could moderately be described as an agricultural economic system because agribusiness serves as the engine of growing of the overall economic system ( Ogen. 2003: 231-234 ) . From the base point of occupational distribution and part of GDP. agribusiness was the taking sector.

During this period. Nigeria was the world’s 2nd largest manufacturer of chocolate. largest exporter of palm meats and largest manufacturer and exporter of palm oil. Nigeria was besides a taking exporter of other trade goods such as cotton. Indian potato. gum elastic and fells and tegument ( Alkali 1977: 15-16 ) . The agricultural sector contributed over 60 % to the GDP in the 1960s and despite the trust of the Nigerian provincial husbandmans on traditional tools and autochthonal agriculture method. the husbandmans produce 70 % of Nigeria’s export and 95 % of its nutrient demands ( Lawal 1997: 195 ) . However. the agricultural sector suffered neglect during the hay yearss of roar in the seventiess. Ever since so. Nigeria has been witnessing utmost poorness. Historically. the root of the crisis in Nigerian economic system lies in the disregard of agribusiness and the increased dependance on a monoculture economic system based on oil. The agricultural sector now accounts for less than 5 % of Nigeria’s GDP ( Olagboju and Falola 1996: 263 ) . It is against this back bead that this paper sets out to pull comparative analysis from the Brazilian experience for possible reproduction in Nigeria. Such an attack is peculiarly executable given the fact that Nigeria portions so much in common with Brazil in footings of a extremely contributing agricultural clime. immense and diverse population every bit good as the handiness of natural resources. 2. 2. 1MEANING OF ECONOMIC GROWTH

Harmonizing to Turrets ( 1987 ) “the economic growing of a state can be defined in assorted ways as an addition in gross domestic merchandise. in existent GDP or in per capital GDP” . It is clear hence. that the rate of growing of the existent GDP state. If we want to find the growing in Nigeria for illustration. the rate of growing of its existent GDP stands as the most appropriate step. Alternatively. we can besides analyze the significance of economic growing through the usage of production possibility curve. A production possibility curve is used to picture the maximal measures of two goods or types of goods that can be produced when all the resources of the state are to the full and expeditiously utilised. However. Smith ( 1996 ) visualised that economic growing consequences from specialisation of labor. application of new engineering every bit good as through international trade. But one of import fact to observe is that. since economic activities tend to or switch outward. states will ever enter a positive growing rate and sometimes negative. such as inward of country’s production possibility curve ( PPC ) ( Clawer. Graves and Sexton. 1989 ) . Nigeria’s economic system had in some ears of the late1980s and through 1990s recorded some negative growing rate and in fact. still does till day of the month and even beyond. 2. 2. 2AGRICULTURE AND ECONOMIC GROWTH

Development economic experts in general and agricultural economic experts in peculiar. have focused on how agribusiness can outdo contribute to overall economic growing and modernisation. Many early analyst ( Fel and Rani. 1954 ; Jorgensen 1961 ; Hirschman 1958 ; Scitovsky 1954 ; Lewis 1954 ; Rosentein-rodan 1943 ) . have highlighted agribusiness because of its copiousness of resources and its ability to reassign excesss to the more of import industrial sector. The conventional attack to the functions of agribusiness in economic growing concentrated on agriculture’s of import market-mediated linkages. and they are: I. Supplying nutrient for the spread outing population with higher income. two. Supplying labor for an urbanised industrial work force. three. Supplying nest eggs for investing in industry.

four. Enlarging markets for industrial end product supplying export net incomes to pay for imported capital goods and v. Providing primary stuff for agro processing industries ( Timer 2002. Delgado et al 1994. Ravis et al 1990. Johnson and Mellor 1961 ) . Rapid agricultural productiveness growing is a requirement for the market mediated linkages to be reciprocally good. Productivity growing that resulted from agribusiness has had tremendous impacts on nutrient supplies and nutrient monetary values and attendant good impacts on nutrient security and poorness decrease ( Hazel and Hag blade 1993. Binswanger 1980. Hayami and Herdt 1977. Pinstrup Anderson 1976 ) ; Alston et Al ( 1996 ) . postulate that because a comparatively high proportion of any income addition made by the hapless is spent on nutrient. the income consequence of research induced supply displacement can hold major transnational deductions. peculiarly if those displacement consequences from engineerings aimed at the poorest manufacturers. Agricultural productiveness growing besides triggers the coevals of non-market mediated linkages between the agricultural sector and the remainder of the economic system.

These includes the indirect part of a vivacious agricultural sector to nutrient security and poorness relief. safely net and buffer function ; and the supply of environmental services ( FAO. 2004 ) . While agribusinesss direct private parts to organize families are touchable. easy indirect benefits tend to be over looked in measuring rate of returns. Ignoring the whole scope of economic and societal parts of agribusiness underestimates the returns to investings in the sector ( Valdes and Foster. 2005 ) . Some empirical grounds exists on the positive relationship between agricultural growing ( Valdes and Foster 2005 ) . The transmutation of agribusiness from its traditional subsistence roots induced by proficient alteration. to a overhauling agricultural sector is a phenomenon observed across the development universe. Reasoning. it is clear that agricultural growing has played a historically of import function in the procedure of economic development. Evidence from industrialised states that are quickly developing today indicates that agribusiness was the engine that contributed to growing in the non-agricultural sectors and to overall economic well-being. Economic growing arising in agribusiness can hold a peculiar strong impact in cut downing poorness and hungriness. Increasing employment and income in agribusiness stimulates demand for non-agricultural goods and services. thereby supplying a encouragement to non-farm rural income earners every bit good. 2. 2. 3AGRICULTURE AND ECONOMIC DEVELOPMENT.

The part of agribusiness to economic development lies in: I. Supplying more nutrient to the quickly spread outing population increasing the demand for industrial merchandise. and therefore asking the enlargement of secondary and third sectors. two. It can let go of workers needed for the production of non-agricultural goods and services. three. It can supply a beginning of capital that can be invested in improved productive installations in the remainder of the economic system ( Timer 2002. Delgado et al 1994. Ravis et al 1996. Johnson and Mellor 1961 ) . A progressive urban industrial economic system contributes. in bend. to the rapid development of agribusiness by spread outing the market for agricultural merchandises ; by providing the farm machinery. chemical fertilisers and so on. that raise the degree of agricultural engineering ; by spread outing productive employment chances for workers released from agribusiness by technological alteration ; and by doing possible betterments in the quality of rural life by raising criterions of ingestion both in urban and rural countries ( Binswanger. 1980 ) . A rise in rural buying power. as a consequence of the increased agricultural excess. is a great stimulation to industrial development. The market for manufactured goods is really little in an developing state where the provincial farm laborers and their households. consisting typically two goods in add-on to whatever they need.

There is deficiency of existent buying power therefore reflecting the low productiveness in agribusiness. The basic job therefore is low investing return caused by little size of the market. Increased rural buying power caused by enlargement of agricultural end product and productiveness will be given to raise the demand for manufactured goods and extend the size of the market. This will take to the enlargement of the industrial sector ( Lewis. 1954 ) . Furthermore. the demand for such inputs as fertilisers. tractors. better tools. implements. irrigational installations in the agricultural sectors will all take to the greater enlargements of the agricultural sector. Besides. the agencies of conveyance and communications will spread out to urban countries and manufactured goods to the rural countries. The long tally effects of the enlargement of the secondary and third sectors will be towards higher net incomes in them whether they are operated in the private or the public sector. These net incomes will be given to increase the rate of capital formation through their re-investment. That is what Kuznets calls the “market contributions” of agribusiness when it trades with other sectors of the economic system. Developing states largely specialize in the production of a few agricultural goods for export.

As end product and productiveness of the exportable goods expand. their exports addition and consequences in larger foreign exchange net incomes. Therefore agricultural excess leads to capital formation when capital goods are imported with this foreign exchange. As development additions impulse due to industrialisation. the proportion of agricultural export in the country’s entire exports is likely to fall as they are needed in big measures for domestic production of imported articles. Such articles are import replacements and conserve foreign exchange. Similarly. increased marketed excess of nutrient grains leads to a net economy of foreign exchange. as the economic system tries to accomplish the end of autonomy in nutrient production. Larger productions of nutrient and export harvests do non merely preserve and earn foreign exchange. but besides leads to enlargement of the other sectors of the economic system. Foreign exchange net incomes can be used to construct efficiency of other industries and assist the constitution of new industries by importing scare natural stuffs. machines. capital equipment and proficient know-how. Kuznets calls it the “product contribution” of agribusiness which foremost argues about the growing of net end product of the economic system and the growing of per capita end product. An developing demands big sums of capital to finance enlargement of the substructure and for the development of basic and heavy industries. In the early phases of development. capital can be provided by increasing the marketable excess from the rural sector without cut downing ingestion degrees from population.

Harmonizing to Johnson and Mellor ( 1961 ) “an addition in agricultural productiveness implies some combination of capital formation when it is reduced on the farm and employed in building works” . But the possibility of using unskilled excess signifier labor on capital undertaking necessitating skilled labor is limited. The 2nd possibility of increasing capital formation through reduced agricultural monetary values is besides non executable in the early phases of development when the rise in monetary value is non executable. Decrease in agricultural monetary values is non executable. Decrease in agricultural monetary values is possible in the long tally but democratic states may non be able to follow this logical thinking for political grounds. A more operable solution is to stabilise the monetary values in farm merchandises. The 3rd possibility of increasing farm gross is possibly the best manner for capital formation. This can be done by mobilising increased farm incomes through agricultural income revenue enhancement. land enrollment charges. school fees. for supplying agricultural proficient services and other types of fees that cover all or portion of the farm population. But “political and institutional jobs makes it hard to interpret the increased potency for salvaging and capital accretion. made possible by increased agricultural productiveness. into an existent addition in investing in developing states. Harmonizing to Wald. particular appraisals have had their widest application in the United States.

In position of the fact that they are specially designed for funding such developed undertakings as irrigation plants. inundation control system and certain categories of roads. all of which are highly of import for developing states like India that “the punishments of excessively light revenue enhancement on agribusiness are a stagnating farm sector. a financially starved public sector and a retarded rate of economic growing in the state as a whole ; ( Wald. 1995 ) . Thus states were agriculture dominates. the revenue enhancement of agribusiness in one signifier or another is indispensable for mobilising agricultural excess in order to speed up economic development. Kuznets calls it the “factor of contribution” when there is a transportation of resources to the other sectors. these resources to the other sectors. these resources being productive factors. Agriculture besides expands and diversifies employment chances in rural countries. As agribusinesss productiveness and farm income additions. non-farm rural employment expands and diversifies.

Landless and fringy husbandmans are chiefly engaged in non-agricultural chases which includes the makers of fabric. furniture. tools. handcraft. leather and metal processing. selling. conveyance. fix work. building of houses and other edifices. instruction. medical specialty and other services. as these activities satisfy local demand. Lastly. addition in rural incomes as a consequence of the agricultural excess tends to better rural public assistance. Peasant starts devouring more nutrient particularly of a higher nutritionary value in the signifier of superior quality cereals. eggs. ghee. milk. fruits etc. They build better houses fitted with modern comfortss like electricity. furniture. wireless. fan etc. supply themselves with bikes. bikes. tickers. readymade garments. shoe etc. they besides receive direct satisfaction from such services such as schools. wellness Centres. irrigation. banking. conveyance and communicating installations. Therefore increased agricultural excess has the consequence of raising the criterions of life of the mass of rural people.

2. 2. 4NIGERIAN ECONOMIC ENVIRONMENT
Nigeria was and is still fundamentally an agricultural state despite the fact that there is important growing in the other sector of the economic system since her independency in 1960. Agribusiness remains the individual largest sector of the economic system since it provides employment to a big section of the work force and representing the chief stay of Nigeria’s rural population. Since 1985. the per centum of gross domestic merchandise attributable to agribusiness has been maintained about 31 % . good in front of excavation and quarrying. which includes petroleum crude oil and gas every bit good as whole sale and retail trade. which are besides the other two major subscribers to GDP in Nigeria. Before 1970. the agricultural sector has enjoyed a comparatively abundant supply of farm labor and arable land for agribusiness was able to react rather steadily to a lifting demand. An enlargement of land under cultivation and increased soaking up of rural labor constituted a ready means for end product enlargement. However. the 1970s oil roar saw a high rate of rural-urban population migrating. which resulted into supply demand instability in the nutrient subsector. while traditional export declined aggressively in both absolute and comparative footings.

From 1970. Nigeria’s agribusiness has been characterized by extra demand over supply due to high population growing rate. stagnant worsening economic growing. high rate of globalisation. increased demand for agricultural natural stuffs by an spread outing industrial sector and the lifting per capita income which is stimulated by an oil export gross roar. The diminution in production of tradable has raised serious domestic and external reconciliation jobs. The end product of domestic inputs utilizing agro-allied houses is constrained by end product fluctuation. which reduces the size of export grosss and market portions. This adversely affects the balance of payment. The agricultural sector was estimated to worsen at an one-year norm of 0. 43 % between 1970 and 1985 while the periods between 1975 and 1978 recorded the highest degree of diminution of 7. 88 % . The agricultural export harvest sub-sectors part to the entire foreign net incomes declined from an norm of 58 % in the 1960s to merely 5. 2 % between 1971 and 1985. Indeed. by 1980. Nigeria had become a net importer of nutrient and most of its tradable export harvests had either disappeared from the export list or simply maintained an undistinguished presence. As it were. the agricultural export sub-sector became progressively unable to run into the natural stuff demands to the chiefly processing industries and moreover. inflationary force per unit area characterized the economic system. general devolution of rural life and rural urban migration.

Notwithstanding. the ascertained agricultural diminution. agricultural policy appeared to hold been more active in the 1970s than in the sixtiess. In the formal period. the authorities implanted successful programme like National Agricultural Food Production Programme ( NAFP ) . Operation Feed the Nation ( OFN ) and green revolution programme. besides Bankss assisted Agricultural Development Programme ( ADP ) . Government besides tried to better selling system for agricultural export harvests by reforming the marketing board system in 1973. 1976 and 1977. Agricultural sector did non better ; as a consequence there was debut of Structural Adjustment Programme ( SAP ) in 1986. which necessitated the deregulating of exchange rates and abolishment of marketing board system. 2. 2. 5AGRICULTURAL PRODUCTION DURING THE STRUCTURAL ADJUSTMENT PROGRAMME ( SAP ) One of the most of import debates the structural accommodation programme ( SAP ) has centred on the impact of the programme on agricultural sector. It was anticipated that the steps adopted under this programme will convey about increased domestic production of nutrient and eventual riddance of nutrient import. increase supply of fabricating industries of agricultural natural stuffs such as cotton. chocolate. oil thenar. rubber etc. was besides anticipated ( Obadan and Egbase. 1992 ) .

Besides. the variegation of export base of the economic system would be enhanced with the addition in the agricultural monetary values and roar in the sector. production was expected to interpret into lifting rural employment. income and criterion of life. Therefore. the agricultural production will be viewed from two positions. which is agricultural nutrient production during SAP and agricultural export during SAP. 2. 2. 6AGRICULTURAL FOOD PRODUCTION DURING SAP

Following the debut of SAP in 1986. some authors have claimed that nutrient production have been on the increasing sides. Since one of the outlooks of congratulating this programme is to convey nutrient and to do certain that the importing of nutrient is eradicated. Iwayemi in 1994 found out that one of the positive developments in recent old ages is a unifying tendency of upward bend in the production of agricultural tradable ( rice. soya beans and corn ) and of the non-traded nutrient class and manioc has performed imposingly. Furthermore. it was discovered that instantly after the debut of SAP. there were crisp addition in the monetary values of basics such as yam. manioc. rice. maize. etc. for case the mean market retail monetary value in Kwara province rose from ?450 per metric ton to ?560 per metric ton in 1986 and ?686 per metric ton in 1986. Besides. the mean market monetary value of rice in Kaduna province rose from ?1500 in 1985 to ?1700 and ?2213 in 1992.

These additions in the monetary value of basics are adduced to high inflationary force per unit areas ensuing from SAP. Besides Edgbai ( 1988 ) argued that the devaluation of the Naira following the coming of the SAP lead to dramatic addition in the monetary values of most agricultural inputs. implements and machinery. The per centum monetary value addition of these inputs between 1985. the last pre-SAP year’s ranges between 50 % and 70 % utilizing official monetary values later there have so been additions in the manufacturer monetary values of corn development. Finally. Iwayemi ( 1994 ) concluded that the most urgent job in the sector is the deficiency of equal production capacity to run into domestic nutrient demand of quickly raising big population. 2. 2. 7AGRICULTURAL EXPORT DURING SAP

The major purpose of presenting SAP was to better the agricultural export through the depreciation of the country’s currency. However. different researches hold different sentiments refering this. For case. Obadan ( 1993 ) found out that SAP policy of exchange rate accommodation was an of import factor that positively affected supply of gum elastic and suggested that existent depreciation of the naira for illustration. tends to excite gum elastic husbandmans to increase supply of export. therefore speaking advantage of the improved international fight. In modern development. with the exclusion of gum elastic. the export snap of chocolate. palm meat and processed or semi processed merchandise with regard to alter in exchange in Nigeria was by and large of low order even in the long tally. Hence. Obadan and Egbase ( 1992 ) concluded that export base production activities particularly agriculture. have benefited from the SAP inducement originating peculiarly from naira to depreciation and trade liberalisation. Therefore. measure of natural gum elastic exported rose from 32000 in 1985 to 108600 in 1991. alterations in naira exchange rate significantly affected natural gum elastic supply under SAP.

In contrast. Ajilim and Agba. ( 1986 ) claimed that there is over overpowering grounds that SAP has really slender chance for exciting non-oil export e. g. chocolate. Besides Dayo. ( 1996 ) discovered that the low snap estimation was due to limited volume of agricultural export gaining in response to devaluation of the naira. Besides. Ajayi ( 1988 ) and Osagie ( 1985 ) postulate In that in Nigeria. exchange rate devaluation is dead and have no important consequence on the external trade balance because of low monetary values snap by and large associated with the extra import and export demand maps. In other words Balogun ( 1987 ) estimated agricultural export map with exchange export has the damages and the consequence showed deadness of aggregative agricultural export to interchange rate. monetary value and imported and agricultural input. He therefore. concluded that the agricultural sector. which is dominated by smaller clasp agriculture. is insulated from external trade variables or dazes. Finally. Obadan and Egbase ( 1992 ) argued that export base production activity. particularly agribusiness. have benefited from SAP inducements originating peculiarly from naira depreciation and trade liberalisation. for illustration in response to the monetary value and exchange liberalisation. the measure of natural exported rose from 32000tonnes in 1985 to 33000 in 1986 and 108800 in 1991 alterations in naira exchange rate significantly affected natural gum elastic supply under SAP.

However Obadan ( 1993 ) argued that the chief aim of SAP has non been realized even though that the figure of agricultural export have addition. the value is still in important. 2. 2. 8THE EFFECT OF SAP AND THE AGRICULTURAL SECTOR AND ECONOMIC DEVELOPMENT. Warder ( 1995 ) analysed the economic and political development on Nigeria’s agricultural sector including the application of the structural accommodation programme ( SAP ) . He discovered that with the application of SAP. that the state was able to point her agricultural production toward the production and exportation of hard currency harvests while Husia and Farugee ( 1994 ) found out that for any underdeveloped state like Nigeria to see the turn-around in our state. the state should set up and keep macro-economic stableness. extinguish favoritism against agribusiness and take steps to take anti export prejudice. Furthermore. Obadan ( 1994 ) stated that the agricultural sector during SAP was able to change by reversal negative growing of the economic system during the early 1980s. because of more favorable more upwind conditions and acceptance of a floating exchange rate system which favoured agribusiness deregulating of agricultural monetary values and the precedence harmonizing to the execution of the cardinal public sector agricultural plans.

Stanley ( 1987 ) added that SAP policy consisted of steps that are aim at accomplishing viability in the average term balance of payment why the degree and rate of growing of economic system activity was maintained at the optimum degree of operation. In add-on Ojo ( 1988 ) stated that the consequence of SAP on agricultural and rural development has brought about an addition in agricultural production and there was an betterment in rural development. He nevertheless. noted that the cardinal jobs of Nigeria agribusiness still persist. In contrast. since the theoretical bases of SAP is based on the unseeable manus or market mechanism. Obadan and Ekuarhare ( 1993 ) opined that a Pareto system which required a free market economic system may non be thought for a development or even a developed state. This is because the market mechanism may faster efficiency but non equity. The monetary value mechanism which is concerned with province resources allotment undermines economic growing and development in developing states. ‘’consequently. without authoritiess intercession in economic activities. the market leads to misallocation of present and future resource or at least to one which may non be in long tally in the best involvements of the society’’ ( Torado 1977. 164 quoted in Obadan and Ekuarhare 1993 ) .

Finally. Obadan and Ekuarhare opined further that the financial pecuniary exchange policy mix contained in SAP is inter-consistent with economic recovery from a recession ( from which the state has been combating due to external daze and the crisis of accretion within the domestic middle class ) . Recovery from this cyclical downswing characterized by below capacity state production would necessitate an addition in authorities outgo to supply greater employment and increased societal benefit. In other words. the deflation an economic system coupled with deregulating and liberalisation will non take to an upturn of the economic system. Therefore. Obadan ( 1993 ) discovered that the chief aim of SAP has non been realized even though the figure of non-oil manufactured agricultural export points have increased the value and is still undistinguished. For case. exchange in-flow from non-oil exports cut down from $ 557million in 1985 ( per SAP ) to $ 538 million in 1987. It increased to $ 613 million in 1988 but reduced drastically to $ 406million in 1990 and by 1992 ; the sector merely contributed 3. 6 % of the nation’s foreign exchange.

The value of agricultural export which stood at an norm of ?408. 7 million before worsening aggressively to ?270. 8 million in 1981-1985. owing mostly to worsen in hard currency harvest manufacturers. During SAP. export net incomes grew to ?1822. 9 million in 1986-1990 for primary agricultural trade goods such as tubers. fruits and spices coming on board. In add-on. export of makers and semi makers of agricultural merchandises which earned merely ?37. 2 million in 1891-1985 recorded the amount of ?214. 9 million in 1986-1990 as Nigeria became exporter of fabric. soap. detergent. beer. drinks and tegument in add-on to chocolate merchandises. Emmanuel ( 2002 ) viewed productiveness as the wealth of a state. Harmonizing to him. Nigeria is liberally endowed with abundant natural resources. He farther argued that if this tremendous resources base is good managed. through increased productiveness. the wealth of the state is bound to increase. He argued that a husbandman workss a seed and harvest several reaping period. productiveness has increased and the wealth of a state has increased excessively. The mercantilists ( eighteenth century ) argued that productiveness in the agricultural sector contributed the least to the economic growing. They said that it merely promoted domestic trade and did non fore see mechanisation and modernisation that took over manual labor in the agricultural sector. as agricultural trade goods are non merely traded domestically but exported to other states. 2. 2. 9AGRICULTURAL PRODUCTION AND EXPORT

The dislocation of agricultural production into its constituent parts reveals the jobs during 1985 period. While nutrient production recorded merely a fringy addition export harvest production declined aggressively. The unequal domestic nutrient production is reflected in Nigeria’s monolithic nutrient imports. particularly in the 1970’s to argument domestic supply. The supply in the production of some of Nigeria’s cultural export trade goods was most unreassuring for case. Nigeria that was ranked as the universe taking manufacturer and exporter of palm oil in the sixtiess had become the net importer of this trade good in the mid-70s. Similarly. Nigeria’s chocolate production. which reached its extremum of 309000 metric tons in 1970-71. fell drastically to 160000 metric tons in 1985. The crisp turn down in the gross value footings of trade in agribusiness was every bit serious. The ratio of agricultural exports to nutrient imports which stood at 143 % in 1970-1975 suffered important impairment and reached the lowest at 38 % by 1976-1982. The public presentation of agribusiness during the reappraisal period was underdetermined chiefly by its disregard coupled with a concatenation of distributive created by the oil roar. 2. 3THE METHODOLOGICAL REVIEW OF LITERATURE

Several policies every bit good as policy instruments have been put to topographic point over the twelvemonth by consecutive authorities in Nigeria. Some had positive consequence while the others had negative effects. Olayami ( 1985 ) identified three distinguishable agricultural policy epoch under which the agricultural sector developed for the past three decennaries. these includes ; the 1960-1969 epoch. the 1970-1985 epoch. These policies were targeted at bettering the public presentation of the sector during this period. A reappraisal of these policies would be discussed ; Agricultural policy during these periods was limited to selling and pricing for which the selling board was established. Actually. at the eruption of World War 2 in 1939. authorities owned selling boards were setup in British. West Africa to guarantee orderly selling and to protect British supplies of natural stuffs ( Adegbola and Akinbode. 1986 ) . Government was involved in agricultural research and extension of services but the issue of autonomy in agribusiness for nutrient and natural stuffs was non pursued. Besides investing in agribusiness with enterprises to better employment was left to the enterprise in farming. During this period. there was decentralised attack to agriculture with enterprises being left to the parts and the provinces while the federal authorities played a supportive function. Regional authorities were put to deathing abhor policies. programme and undertakings. There was no institutional federal duty for agribusiness and there were no specific agricultural sector aims. There were a figure of policies and programme and some of them are discussed below ; 2. 3. 1AGRICULTURAL Selling Policy

The agricultural selling board system was used extensively in marketing agricultural merchandises during this period. The system started with the constitution of a trade good selling board in 1947 and for Indian potato. thenar green goods and cotton in 1949. In 1954. the board became regionalized with one multi trade good selling board for each of the parts. and subsequently for each of the provinces. The board accumulated immense trading excesss which were used to mobilise significant nest eggs for the authorities. These excesss were generated at the disbursal of the stableness of farmers’ income. The farmers’ income was kept low and with increasing hazard on the farm worsening universe trade good monetary values of the mid 60s. there was an inducement for peasant addition production ( Adubi. 1966 ) . 2. 3. 2AGRICULTURAL DEVELOPMENT COOPERATION PROJECTS

The regional authorities of the E and western Nigeria stared this undertaking and so subsequently the North. to promote the development of these harvests. There financed from excesss of the selling boards. This was before the creative activity province. the UNIX oil thenar plantation ( now in Rivers and Cross Rivers ) . the Hushin gum elastic estates ( now in Ogun province ) . and the upper Ogun cowss ranches etc. 2. 3. 3FARM SETTLEMENT SCHEME

In the early 1960s the regional authorities assisted school departers who were willing to travel into agribusiness constitution farm colony strategy in topographic points like Edo. Ilora. Ikenne. Ibadan and so on. The farm colony were setup as theoretical account for other husbandmans who frequently look up practises being carried out by colonists and had easy entree to farm equipment and services. However. due to non-ownership form of the strategy. farm and house power supply jobs and the limited individuals’ retentions. most colonists were non committed. The owned land outside the greater colony and chiefly used the chance to obtain services through rank of a colony strategy ( Adegbola and Akinbode. 1986 ) 2. 3. 41970-1985 ERA ( PERIOD OF MAXIMUM GOVERNMENT INTERVENSION ) Agricultural production started to worsen towards the terminal of the decennaries of 1960s. Export harvests end products were stagnating while export volumes begin to diminish. and there was grounds of nutrient deficits in the state. The 1963 GDP figures for illustration shows that agribusiness harvests. farm animal. fishing and forestry accounted for 64 % of entire GDP and the norm for 1960s decennary estimated at 56 % . Similarly. in the export sector. the per centum of agricultural green goods was worsening ( Adubi. 1966 ) .

The job of agricultural production diminution was ascribed partially to the civil war and partially to the worsening trade good procedure in the universe market and the inducement to production due to revenue enhancement of the trade good board. There was hence greater engagement of the authorities in agribusiness. The outgo of authorities and hence for its investing addition in the sector specific sector accent of policy was on speed uping production of the basic nutrient harvests and some export harvests. There was a cardinal displacement in the scheme compared with the decennary of 1960s and the federal authorities became more involved in the sector. The scheme taken. led to the launching of several particular programme and undertakings. Besides specialised in establishments were setup to guarantee smooth execution of the agricultural policies ; the period witnessed many macroeconomic and sector specific policies. which straight or indirectly affects agricultural production. Many of the macroeconomic policies of the authorities had broad dispersed consequence on agribusiness. though non targeted at the agricultural sector. until there are some programme which includes selling policy. input supply and distribution policy and input subsidy policy. Agricultural Development Projects ( ADPs ) and River Basin Development Authority ( RBDA ) were besides established to advance agricultural developments. 2. 3. 5THE 1985-1999 ERA ( SAP AND POST SAP PERIOD )

With the Structural Adjustment Programme ( SAP ) in 1986. authorities admitted the failure of past policies to significantly better the economic system and change by reversal the worsening tendency of production in the agricultural sector. The SAP relied most particularly on the agricultural sector to accomplish the aims of its far making refunds on variegation of export and accommodation of the ingestion construction of the economic system. The doctrine of SAP for the agricultural sector was that merely the interplay of the market forces could further efficiency in the sector. The authorities was hence expected to play minimum function for private sector enterprise in the sector. Many of the policy step adopted in SAP and macro in nature and those that affect agribusiness besides fall straight into financial. pecuniary. trade and exchange rate policies every bit good as institutional policy refunds. Many establishments such as National Directorate of Employment ( NDE ) . Directorate of Food. Roads and Rural Infrastructure ( DFRRI ) . National Agricultural Insurance Company ( NAIC ) . National Land Development Authority ( NALDA ) were established to help new husbandmans and promote agribusiness development in the rural countries. Basically. these policies and programme were implemented until 1999. The alterations in the authorities during the review period 1985-1999 besides led to alterations of some of the policies above. which basically formed the major focal point of authorities on agricultural development. 2. 3. 6THE New MILLENNIUM AGRICULTURAL POLICIES ( 1999-2003 )

At the origin of the new democratic disposal in May 1999 and shortly before so. several institutional alterations were made in order to recognize the sector’s aims and in line with its belief that agricultural and rural development are sine que non for improved economic system recovery ( Olamola. 2003 ) these includes the resettlement of section of co-ops. Division of the ministry of Water Resources to the ministry of agribusiness all before 1999. the scrapping of the erst while National Agricultural Land Development Department. the scrapping of the Federal Agriculture Coordinating Unit ( FACU ) and the Agricultural Project Monitoring and Evaluating Unit ( APMEU ) and the puting up of Project Co-ordination Unit ( PCU ) and the watercourse liner establishment for agricultural recognition bringing with the exigency of the Nigerian Agricultural Co-operative and Rural Development Bank ( NACRDB ) and the peoples bank and the plus of the Family Economic Advancement Programme ( FEAP ) . New establishments are besides germinating to enable the Nigerian agricultural sectors respond to the jussive mood of the emerging planetary economic order. The new agricultural policy has a clear statement of aims amid the structural transmutation necessary for the overall socio-economic development of the state every bit good as the betterment in the quality of life of Nigeria.

This nonsubjective reflects the current policy acknowledgment of agribusiness as a critical sector under the poorness decrease programme ( FMARD. 2003 ) . The authorities besides seeks to prosecute the following specific aims: i. Attainment of autonomy in basic nutrient trade goods with peculiar mention to those which consume considerable portions of Nigerian’s foreign exchange and for which the state has comparative advantage in local production. two. Addition in production and processing of exportable trade goods with a position to increase their foreign exchange gaining capacity and further diversifying the country’s export base and beginning of foreign exchange net incomes. three. Addition in production of agricultural natural stuffs to run into the growing of an spread outing industrial sector. four. Modernization of agricultural production. processing. storage and distribution through the extract of improved engineerings and direction so that agribusiness can be more antiphonal to the demands of other sectors of the Nigerian economic system. v. Creation of more agricultural and rural employment chances to increase income of husbandmans and rural inhabitants. productiveness absorbed and increasing labour force in the state.

These aims are decently in understanding with the whole construct of agricultural sustainability and inter-linkage between agribusiness and each of the relevant sectors of the economic system. As it is usual with the specification of agricultural policy aims from clip immemorial. these aims are clearly presented and are fundamentally consistent with the overall scheme of diversifying the productive base of the economic system for an increased foreign exchange coevals. higher degree of employment and productiveness and improved economic system recovery. Specification of policy aims had been the most easy complete constituent of agricultural policy preparation in peculiar and development planning experience in the state in general. It is hence non surprising that the specified aims in the new policy papers are so comprehensive and quite appropriate. 2. 4POLICY Evaluation

It might be hard to measure all the policies objectively given the infinite and the focal point. However. grounds from some writers ( Olayemi 1995. Olamola 1998. Dress 1998 ) has indicated minimum positive impact of these policies. Besides. the public presentation of the sector is far from being to the full satisfactory. The grounds of these is the disintegrating rural substructure. worsen domestic and foreign investing in agribusiness. In fact the increasing backdown of fabricating companies from their backward integrated agricultural ventures has reduced investing in the sector well. Input supply and distribution have been inefficient and most agricultural establishments are uneffective. The grounds of ineffectualness is the scrapping in the twelvemonth 2000 of some of the establishments established for agricultural production. a critical scrutiny of the policies and there execution over the old ages to demo policy instability. This job is non unconnected with the political instability in the state. Between 1979 and 1999. the state has passed through five military and civilian governments. In between the curate of agribusiness at the federal degree and the assorted commissioners for agribusiness at the province degree were changed several times on the norm of one per two old ages. Several policy steps were stated and changed without sufficient evaluation for policy consequence or consequence. 2. 4. 1POLICY INCONSISTENCIES.

With regard to agricultural production. the sector has passed through several periods of production and unbridled opening up for competition. It has besides passed through epochs of no authorities and less authorities engagement in direct agricultural production. The consistences of policy transparence. leads to hapless execution and misdirection of policy instruments. 2. 5EMPERICAL Reappraisal

Oji-Okoro ( 2011 ) look into the part of agricultural sector on the Nigerian economic development and reveal that foreign direct investing on agribusiness contribute the most ( 56. 43 ) . this means that for every unit of alteration in FDI on agribusiness there is a corresponding alteration of 56. 43 unit in GDP in Nigeria. Suleiman and Aminu ( 2010 ) conducted research on the part of agribusiness. crude oil and fabrication sector of the Nigerian economic system and found out that agricultural sector is lending higher than both crude oil and fabrication sectors. The paper reveals that agribusiness is lending 1. 7978 units to GDP while crude oil is lending 1. 14 units to GDP which is less than the part of agribusiness. Awe and Ajayi ( 2009 ) conducted research on the variegation of the important when the log of gross from agribusiness was tested on the gross from agribusiness. About 60 per centum of the motion could be explained in the relationship. The findings from the survey farther revealed that dynamic relationship exists between the gross from the non-oil sector economic development.

Ekpo and Umoh ( 2012 ) revealed that the part of agribusiness to GDP. which was 63 per centum in 1960. declined to 34 per centum in 1988. non because the industrial sector increased its portion but due to pretermit of agribusiness sector. It was hence non surprising that by 1975. the economic system had become a net importer of basic nutrient points. The evident addition in industry and fabrication from 1978 to 1988 was due to activities in the excavation sub-sector. particularly crude oil. Muhammad and ( 2006 ) conducted survey on production of agribusiness in Nigeria and revealed that the negative coefficient of the value ( -0. 07 ) of the nutrient imports indicates that as nutrient import additions. domestic agricultural production lessenings. This might be due to the fact that nutrient importing exposes the local husbandmans to unjust competition by foreign manufacturers who normally take advantage of economic systems of graduated table in production due to their entree to better production engineering. The positive coefficient ( 286. 91 ) of the GDP growing rate indicates that addition in the GDP besides moves domestic agricultural production in the same way. This shows that increased domestic economic activity has the impact of increasing the domestic agricultural production.

This may be due to the fact that most economic activity in the state is related to agribusiness. The consequence besides shows that population additions has been a major part to domestic agricultural production in Nigeria with the coefficient ( 18424. 73 ) . This may be due to the fact that bulk of the public are engaged in agribusiness. intending more manus on the farm as population additions. The coefficient of consumer monetary value index was positive ( 8. 49 ) . This shows that as consumer monetary value additions domestic agricultural production besides increases’ . intending that domestic agricultural production is positively related to increase in consumer monetary values. This may be due to the fact that addition in monetary value stimulates supply on the farmer’s side taking to more production of nutrient. More agro-processing activities must hence be embarked upon in order that husbandmans may be able to dispose of their green goods at reasonably sensible monetary values. The consequence of the coefficient ( 0. 04 ) of authorities outgo was positive. that is domestic agricultural production is positively related to increase in authorities outgo. significance that as authorities expends more on agribusiness. domestic agricultural production besides increases. The ground why it was non important might be due to the fact that authorities has non been puting so much on agribusiness over the old ages.