Role of agriculture in economic growth and poverty reduction in Bauchi local government area of Bauchi State.

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CHAPTER ONE

INTRODUCTION

• Background to the Study

Agriculture plays a significant role in the economic growth and poverty reduction in Nigeria. According to the World Bank (2018), agriculture contributes about 24% to Nigeria’s Gross Domestic Product (GDP) and employs about 70% of the country’s labor force. This sector is crucial in providing food and income to the majority of Nigeria’s population, particularly those living in rural areas. The agricultural sector’s potential to drive economic growth and reduce poverty is significant, given its extensive reach and the number of people it directly impacts.

However, despite its potential, the agricultural sector in Nigeria faces several challenges that hinder its growth and its ability to reduce poverty effectively. According to the Food and Agriculture Organization (FAO, 2017), these challenges include inadequate access to credit, poor infrastructure, lack of modern technology, and climate change. These factors limit the productivity of the sector and its ability to contribute to economic growth and poverty reduction.

The Nigerian government has implemented several policies and programs aimed at addressing these challenges and enhancing the role of agriculture in economic growth and poverty reduction. For instance, the Agricultural Transformation Agenda (ATA) launched in 2011 aimed to increase agricultural productivity, improve food security, and create employment opportunities (Federal Ministry of Agriculture and Rural Development, 2011). However, the impact of these initiatives has been mixed, with some achieving significant success while others have not met their objectives.

Research by Oluwatoba and Ogunnaike (2019) found that while the ATA had some success in increasing agricultural productivity, it did not significantly reduce poverty levels. This suggests that while increasing agricultural productivity is important, it is not sufficient to reduce poverty. Other factors, such as improving access to markets and enhancing the value chain, are also crucial.

In conclusion, while agriculture plays a significant role in Nigeria’s economy and has the potential to drive economic growth and reduce poverty, several challenges need to be addressed. These include improving access to credit, enhancing infrastructure, adopting modern technology, and mitigating the impacts of climate change. Furthermore, while government policies and programs are crucial, they need to be effectively implemented and should focus not only on increasing productivity but also on improving access to markets and enhancing the value chain.

Future research should focus on identifying the most effective strategies for enhancing the role of agriculture in economic growth and poverty reduction in Nigeria. This could include comparative studies of different regions within Nigeria or comparisons with other countries that have successfully leveraged their agricultural sector for economic growth and poverty reduction.

 Statement of the Problem

The problem of economic growth and poverty reduction in Nigeria is a complex one, with agriculture playing a pivotal role. Despite the country’s vast agricultural potential, the sector has been underperforming, contributing less to the GDP than expected (World Bank, 2018). The underperformance of the agricultural sector has been linked to several issues, including inadequate access to credit, poor infrastructure, and outdated farming practices (Adeyemo, 2017).

The issue of poverty reduction is also closely tied to the performance of the agricultural sector. According to the National Bureau of Statistics (2019), over 40% of Nigerians live below the poverty line, with rural areas being the most affected. Given that a significant proportion of Nigeria’s rural population depends on agriculture for their livelihood, improving the performance of this sector is crucial for poverty reduction (Omonona, 2010).

Another problem is the lack of access to modern farming technologies and practices. Many Nigerian farmers still rely on traditional farming methods, which are often less productive and more susceptible to environmental changes (Adeyemo, 2017). This lack of access to modern farming technologies is partly due to the high cost of these technologies and the lack of adequate training and support for farmers (Omonona, 2010).

The issue of inadequate infrastructure also hampers the growth of the agricultural sector. Poor road networks, lack of storage facilities, and inadequate access to water and electricity are some of the infrastructural challenges facing the sector (World Bank, 2018). These challenges not only affect the productivity of the sector but also the ability of farmers to access markets and sell their produce at competitive prices (Adeyemo, 2017).

Furthermore, the issue of climate change and environmental degradation poses a significant threat to the agricultural sector. Changes in rainfall patterns, increased temperatures, and soil degradation all affect agricultural productivity and, by extension, the livelihoods of those dependent on the sector (Omonona, 2010).

In conclusion, the role of agriculture in economic growth and poverty reduction in Nigeria cannot be overstated. However, several challenges, including inadequate access to credit, poor infrastructure, outdated farming practices, and environmental changes, hinder the sector’s performance. Addressing these challenges is crucial for harnessing the potential of the agricultural sector in driving economic growth and reducing poverty in Nigeria.

• Aim and Objectives of the Study

The aim of the study is to examine the role of agriculture in economic growth and poverty reduction in Bauchi local government area of Bauchi State. The specific objectives of the study are:

1. To examine the relationship between agricultural productivity and economic growth in Nigeria.
2. To assess the impact of agricultural policies on poverty reduction in Nigeria.
3. To evaluate the role of agriculture in employment generation and its effect on poverty levels.
4. To identify the challenges hindering the potential of agriculture in contributing to economic growth and poverty reduction.

 Research Questions

The research questions are buttressed below:

1. What is the relationship between agricultural productivity and economic growth in Nigeria?
2. How do agricultural policies impact poverty reduction in Nigeria?
3. What is the role of agriculture in employment generation and how does it affect poverty levels?
4. What are the challenges hindering the potential of agriculture in contributing to economic growth and poverty reduction in Nigeria?

• Research Hypothesis

The hypothetical statement of the study is stated below:

H_O:  There is no significant relationship between agricultural productivity and economic growth in Nigeria

H₁:  There is significant relationship between agricultural productivity and economic growth in Nigeria

• Significance of the Study

Agriculture plays a pivotal role in the economic growth and poverty reduction in Nigeria. As a primary sector of the economy, agriculture contributes significantly to Nigeria’s Gross Domestic Product (GDP), accounting for about 23.9% of the total GDP as of 2020. This sector provides employment for over 70% of Nigeria’s population, making it a crucial player in poverty reduction. The agricultural sector also contributes to the country’s export earnings, with commodities like cocoa, cashew nuts, and sesame seeds being exported to various parts of the world.

The agricultural sector’s role in poverty reduction is also evident in its potential to increase household income. By engaging in agricultural activities, households can generate income, which can be used to meet their basic needs, thereby reducing poverty levels. Furthermore, the sector’s growth has a multiplier effect on the economy, stimulating growth in other sectors such as manufacturing and services, which further contributes to poverty reduction.

However, despite its potential, the agricultural sector in Nigeria faces several challenges that hinder its contribution to economic growth and poverty reduction. These challenges include inadequate access to credit, poor infrastructure, inadequate agricultural inputs, and climate change. These challenges have resulted in low agricultural productivity, which has limited the sector’s contribution to poverty reduction.

To enhance the role of agriculture in economic growth and poverty reduction, there is a need for policy interventions. These interventions should aim at addressing the challenges facing the sector. For instance, policies should be put in place to improve farmers’ access to credit, enhance agricultural infrastructure, and promote the use of improved agricultural inputs. Additionally, policies should also aim at promoting climate-smart agricultural practices to mitigate the impacts of climate change.

The role of agriculture in economic growth and poverty reduction in Nigeria cannot be overemphasized. With the right policies and interventions, the agricultural sector can significantly contribute to economic growth and poverty reduction. This will not only improve the livelihoods of the majority of Nigerians who depend on agriculture for their livelihoods but also contribute to the overall development of the country.

The agricultural sector holds the key to Nigeria’s economic growth and poverty reduction. However, for this potential to be fully realized, there is a need for concerted efforts from all stakeholders, including the government, private sector, and development partners. These efforts should aim at addressing the challenges facing the sector and creating an enabling environment for the growth and development of the sector.

• Scope of the Study

The study examines the role of agriculture in economic growth and poverty reduction in Bauchi local government area of Bauchi State. The study is limited to Bauchi local government area of Bauchi State.

 Operational Definition of Terms

Role: In this context, “role” refers to the function or position that something has in a particular situation or process. It’s about the contribution or impact that a particular element, such as agriculture, has on a specific context, such as economic growth or poverty reduction.

Agriculture: Agriculture is the practice of cultivating plants and rearing animals for food, fiber, medicinal plants, and other products used to sustain and enhance human life. In the context of Nigeria, agriculture includes activities such as farming, fishing, and forestry.

Economic Growth: Economic growth is an increase in the production of goods and services in an economy. It’s often measured as the rate of increase in a country’s gross domestic product (GDP). Economic growth is a critical factor that can influence a nation’s stability and prosperity.

Poverty Reduction: Poverty reduction refers to strategies and initiatives that aim to improve the living conditions of those who are living below the poverty line. These strategies can include improving access to basic services, providing social safety nets, and promoting economic opportunities.

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Role of agriculture in economic growth and poverty reduction in Bauchi local government area of Bauchi State