Economic Diversification in Recession: A Case of Nigerian Agriculture as a Sign Post for National Development and Sustainable Growth.
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Date
2017-01-15
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IJASEPSM International Journal of Advanced Studies in Economics and Public Sector Management.
Abstract
Nigerian economy after 56 years of independence, has witnessed once again a downward trajectory in her efforts to achieve sustainable development. The current world statistics in African economy in the mid-year of 2016 has rated Nigerian economy as second largest economy next to South Africa with Gross Domestic product (GDP) of $296 billion U.S. dollars. South Africa economy was considered as the largest economy in African continent with GDP of $301 billion U.S. dollars during the second and third quarter of 2016.This is a reversed trend. In 2014 Nigerian economy was rated as the largest and leading economy using 2014 rebase figures. Recently, International Monetary Fund (IMF) observed that by the end of the year (2016) Nigerian economy would be the largest economy in Africa with GDP of $415 billion U.S. dollars. The present recession faced by the economy has led to a negative growth of 2.06% on the first and second quarters of the year (2016). Economic diversification discourse in recent times in the country with regard to policy of 'BUHARINOMICS' (i.e. change Agenda) as an attempt to re-engineering the economy is focused and dominated on development of agriculture and other non-oil exports. Agriculture has become an arrow head and engine for economic recovery, growth and diversification. This study therefore examines the significant role and obvious comparative advantage of agricultural production as an intervention variable to solving poverty and economic recession. To this end, the paper adopts historical, evaluative and current issues or perspectives to analyze the importance of the sector to Nigerian economy. Neoclassical model and Agricultural Development Strategy were incorporated into the study to investigate and analyze constraints and challenges in Nigerian agriculture which has been abandoned for decades because of wealth of oil and gas production (Dutch Disease).In order to make the sector a sign post for accelerated growth and development, the paper concluded that increased expenditures (i.e. spending), savings and capital investments by government and private initiatives must be sustained in the sector. This would quicken recovery and induce increased agricultural productivity in the economy thereby leading to forward and backward integration in the economy.
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Descriptive, Quantitative and Qualitative Analysis/Design
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Citation
Shitu, A. M. (2017)