Sunday, 25 October 2015

AGRICULTURE AND EXPORT EARNINGS IN NIGERIA, BALANCE OF PAYMENTS IN NIGERIA AND FOOD SUPPLY

The importance of agriculture can also be measured in terms of its contribution to be export earnings from to date.
The contribution of agriculture increased in absolute terms over the years, from N282.4 million in 1960 to N13852.7 million I 1995. It relative share however declined from 83.2%in 1960 to only 1.8 million in 1994.

The reasons usually adduced for this feature are its poor performance in terms of productivity and relative importance of petroleum sector. Apart from these factors, the relative declined in the world demand for primary products, which constitute the bulk of Nigeria which has led to increase in the use of major proportions of some of these products as raw materials. A strategy for increased output is needed to ensure increased export (Structure of Nigeria Economy).
But presently the country realized over 50.6 billion ($341.8 million) from export of agricultural produce in 2008 the country realized 2.9 million higher than N47 billion realized in 2007 (businessdayonline.com).
2.1.4 AGRICULTURE AND BALANCE OF PAYMENTS
One must add that increased agricultural output of industrial raw materials reduce dependence on imported inputs and goes to improve our balance of payment position. The invigoration of agriculture is essential not only for expansion of employment opportunity, reduction of poverty improvement of income distribution and speeding up industrialization but also for easing the pressure on balance of payment.
Agriculture in Nigeria performed this enviable role in 1960s and before the advent of oil. The combined effects of short fail to balance of payments deficits from 1981 to 1994. While net surpluses of N8.1 million and N2.4 billion were recorded in 1976 and 1980, 1981 witnessed a deficit of N2.9 billion. In 1982 deficits stood at N1, 398.3 million on and N244.8 billion respectively while in 1994 it stood at N7, 194.9 million, having fallen from N13, 615.9 million in 1993. This therefore confirms a greater need for renewed attention to our agricultural sector. (Structure of Nigeria Economy)
2.1.5 AGRICULTURE AND FOOD SUPPLY
Nigerian agriculture has in recent years not been able to meet the food needs of the country. Rather, food production per capital has been declining.
To supplement the low domestically produced food supply there has been a substantial rise in food imports. These have taken substantial portions of the much need foreign exchange for importing capital for development purpose.
A strong and efficient agricultural sector has the potential to enable a country feed its growing population, generate employment, earn foreign exchange and provide raw materials for industries. The vibrancy of the sector has a multiplier effect on any nation‟s socio-economic and industrial fabric, because of multifunctional nature. Therefore, the fact remains that is why present administration introduces a 7-point agenda, aimed at guaranteeing a better life for all Nigerians

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