Policy Instruments and Food Importation in Nigeria: An Overview from 1980-2017

Abstract

This study examines the trends in policy instruments and food importation in Nigeria: an overview from 1980 to 2017. The study relied on annual time series data on the amount of rice, sugar, and wheat imported throughout the study period.  For this work, the growth model and the vector error correction model (VECM) were used. All variables were tested for stationarity using the Augmented Dickey Fuller test. The result demonstrated that rice, sugar, and wheat importation surged and significantly drained the Federal Reserve’s during the time under consideration. The foreign funds that would have been utilized to import capital goods for infrastructure improvement were severely depleted. The Federal Government of Nigeria (FGN), through the Federal Ministry of Agriculture and Rural Development (FMARD), public-private partnerships (PPPs), and non-governmental organizations (NGOs), should put in place policies to provide improved seeds/seedlings, agro-chemicals, technique, and material technologies, which are critical for cultivating over 34 million hectares of agrarian lands in Nigeria for improved crop yields and increased production.  As a result, import substitution will occur, freeing up much-needed foreign funds for capital accumulation and infrastructure development. The latter is critical for attracting Foreign Direct Investment (FDI), which will result in increased job creation, a more aggressive fight against youth delinquency, and overall poverty reduction.