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Impact Of Non-oil Export On Nigerian Economy (1986-2010)
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The Nigeria civil war brought about the deterioration of the oil palm
grooves and plantations were abandoned and little if any new planting
was undertaken. As a result of that, the output of palm oil and palm
kernel declined drastically. But according to Onwuka (1985), the
problems of palm products are due to the stagnation in the production of
this wild palm tress, which are of low-yield quality, and the
difficulties experience in harvesting them. In addition, the old system
of pricing which guarantees low production prices for palm produce
discourage substantial investment from being made for further production
of this product. Also, the problem of marketing boards cannot be
over-looked.
Marketing board is an institution set up by the
government with the exclusive right to buy and sell certain agricultural
products. They purchase some products locally export sales are made
through the Nigerian.
Marketing company, which is jointly owned by
the state, one of the marketing functions of the marketing board is to
stabilize the prices or our cash crops and hence creates stability of
income for formers and to accumulate funds for development purposes. But
the operation has failed to provide incentives to farmers to increase
their input. Also, the producers aid unnecessary tax and they took from
the producers some money, which should have gone to them as income they
this reduced the amount of capital available to the producers.
This
criticism, according to Adenira (1991) made the federal Government to
reform the marketing board some with a view to increase producers’
prices and income. He said that the essential features of the new
authority while producer taxation (export duty and produce sale tax) has
been abolished. Another major boards with the responsibility of market
specific products wherever they are produced in the country. These
boards are likely to reduce administrative problem and be more
economical compared with all oil – produce state market boards
previously in existence.
The major fault of the successive government
that are supposed to sustain this sector through the building of
macro-economic structures and incentives diverted their attention away
from agriculture. The result was sharp in the export/import equation as
country started importing even palm oil that was hither to imploring
from Nigeria. The situation was becoming worrisome thus by 1975 there
were attempts to recapture the lost of glory of agriculture. General
Olusegun Obasanjo’s Operation feed the nations becomes the first real
expressed official attempt in this direction. It was followed by the
establishment of two river basin development authorities in 1977 by 1978
and 1979, the federal government made budgetary provision to establish
4,000 hectares of mechanized farms in each of the 19 states then, by
1979, there was a relunch of “operation feed the nation†with a new tag
“Green Revolution†with various committees set up for its implementation
(Oko, 1999).
If the efforts of the two leaders – General Olusegun
Obasanjo and Alhaji Shenu Shagari’s regimes could have brought vigor to
the agricultural sector, the activities of the sic-commodity boards did
not assist much Oko said that fixing export product prices without
recourse to cost inputs discourages agriculture therefore remained slow
because food demand was growing at the rate of 3.5% in the SD’s while
agricultural output was crawling at 11%. Between 1990 and 1998, GDP in
agriculture declined to 6.2%. then the distributions of agriculture
inputs to producers were neglected, infrastructure facilities, like
motor able feeder roads, and irrigation facilities, etc made it
difficult to increase agricultural production CBN mandate to bank with
regard to bank loans to agriculture as priority sector for preferential
leading was floated
1.2 STATEMENT OF THE PROBLEM
Nigeria remained a
net exporter of agricultural products between 1960 and 1970. Goods
exported include palm oil, palm kernel cotton, groundnut, etc;
agriculture through export of non-oil products has a rosy record
contribution up to 80% of the gross domestic product and providing
employment for over 70% of the work population. But recently there has
been a steady decline in terms of agricultural product, to export and an
abandonment of sector by a large percentage of the workforce.
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ABSRACT - [ Total Page(s): 1 ]The study investigated the impact of non-oil exports on Nigerian economy during the period of 1986-2010. This study was carried out against the background of the crucial role non-oil export can play as an alternative source of revenue apart from crude oil exports. To achieve this objective, multiple regressions were used in analyzing the data. The empirical result shows that non-oil export is statistically significant to Nigeria economic growth. On the other hand, Government Expenditure (GEX) wa ... Continue reading---
