Strategies For Revitalizing The Export Crop Sub-Sector Of The Nigerian Agricultural Economy
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In the 1970s, the focus of the economy clu~nged from export crops to
crude oil export in Nigeria. About a decade later, oil prices collapsed
worldwide ·. cmd Nigeria j eali?.ed thai ij.s economy had become a
monopr.oduct one, with the attimddnt vulnerability to price fluctuation
on world markets. The country was also import &pendant for large
sectors of the economy.
Government det!!i"lfiintd to carry out reforms by means of a
structural {ujjustmerit programme (SAP). SAP's aim was to restructure
and diversifY ·the, pr¢uctive base of. the economy, i.e., tO reduce
depentience on oilaiul' imports, whfle promoting_ non oil exports. The '
export sub-sector of the agricultural sector was tO be .revitalized This
has jailed and in the 1990s, the agricultural sub-sector contribution to
total exports was less _than 4 per cent, crude oil being 90-per cent.
· this paper anafyses some :' percetved constraints to· sub-sector
growth and offers solutions to them. An econometric approach
establishes the causal relationship between SAP and agricultural export
crop production. The res~ts of the analysis show that policy measures ·
are required tO ensUre a realistic exchange raJ~{.'increased credit to the
sectOr. ·aiu:l· reJuced prices for farm inputs. ·"A'fl' enabling· environment
should be created, including political stability and the provision of basic
. infrastructures. Jndenttves, e.g.~ accessible credit schemes, should' be
coupled with the removal of .disincenttves, e.g., cumbersome export
procedures and excesstve expQrt levies.
Keywords
H Social Sciences (General), HG Finance