Article Number: DRJA17085288
ISSN: 2354-4147

Vol. 3 (12), pp. 217-222, December 2015

Copyright © 2015
Author(s) retain the copyright of this article

Original Research Article

Econometric Analysis of the Effect of Rice Production and Importation on Domestic Consumption in Nigeria (1999-2013)

A. H. Wudil

*Y. N. Katanga

A. Nasiru


The research examined the econometric effect of rice production and importation on domestic consumption in Nigeria, Secondary data of yearly production, importation and domestic consumption of rice (1999-2013) were collected and used in the study. Result of co-integration reveals that the variable Total National Rice Importation, (TNRI), Total National Rice Production, (TNRP) and Total National Rice Consumption (TNRC) are co integrated and stationary. Regression result shows that local rice production and rice importation were statistically significant at 1% level.  It further shows that, the variables (importation and production) are important determinant of rice consumption. Meaning that, local production alone cannot meet the ever increasing demand for rice in the country.  As such the policy decision to completely ban rice importation will create more problems if rice production is not significantly   increase    to    cater   for   ever   increasing consumption. The coefficient of 0.869 and 1.035 for imports and local production suggests that a unit increase in any of the variable will amount to an increase in the domestic consumption by 0.869 and 1.035. Result of the Granger causality shows a unidirectional relationship between TNRI and TNRC, TNRI and TNRP but no causality between TNRP and TNRI. The study recommend that, Nigeria need to improve its local rice production in order to meet the  ever increasing domestic consumption owing to its significance as the main diet of typical Nigerians as well as the main source of livelihood to its value chain actors in the country.

Key words: Econometric, Rice production, Rice importation, Rice consumption and Nigeria.

 Received: November 20, 2015  Accepted: December 6, 2015  Published: December 12, 2015

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