Agricultural Production: Driver for Economic Growth and Rural Poverty Reduction in Nigeria

Abstract

The research provides empirical information on the relationship between agricultural production and the growth of Nigerian economy with a focus on poverty reduction. The study employed the mean annual time series data of selected index of Nigerian agricultural production for the period of 1979 to 2019 to investigate the long run relationship between agricultural production and economic growth. The data were analyzed using unit root tests and the bounds Autoregressive Distributed Lag (ARDL) testing approach of co-integration. The results of ARDL and Vector Error Correction Model (VECM) supported evidence of long and short run relationships between agricultural production and economic growth in Nigeria. This implies agricultural production was significant in influencing the favorable trend of economic growth in Nigerian. The paper concluded that, despite the growth of the Nigerian economy, poverty is still on the increase and this calls for a shift from a monolithic oil-based economy to a more diverse one with agriculture being the lead sector. The research recommended pro-poor policies be designed for alleviating rural poverty through increase investment in agricultural development by both the public and private sectors of Nigeria.