The Impact of Food Importation on Food Production in Nigeria

Filed in Economics Project Topic by on September 18, 2020

The Impact of Food Importation on Food Production in Nigeria.

ABSTRACT

The research was on the impact of food importation on food production in Nigeria: The case of rice importation and Production. This research is important because Nigeria as country is struggling to attain strong agricultural base which would enable the country sustain development.

The work departed from other studies by evaluating the impact of food importation on food production in Nigeria with the objective of ascertaining the impact of rice importation on rice production in Nigeria, ascertaining the impact of government expenditure on rice production in Nigeria and ascertaining the impact of Balance of Payments on rice production in Nigeria.

This research is important because the impact of food importation on food production and balance of payment needs to be evaluated for appropriate policy formulation on food import restriction in Nigeria.

Hence the researcher adopted multiple linear regression models and least-squares method as the method of empirical estimation.

Time series yearly rice data set from 1980 through 2011 obtained from Central Bank of Nigeria (CBN) publications was used and Ordinary Least Square (OLS) method of estimation was used while conducting the econometrics test and estimation.

From the results it was confirmed in line with other similar studies that the demand elasticity for locally produced rice is low hence high tariffs would hamper demand for imported rice product, and increasing demand for locally produced rice would trigger rice production and reduce imports.

Policy recommendations favoured protectionism approach of bans on the importation of the product to encourage domestic production and only after self sufficiency in rice production has been attained can the country now proceed to export the commodity which would better the Balance of payments position and encourage healthy competition with regards to locally and foreign rice.

INTRODUCTION

1.1 Background of the Study

Agricultural sector was the main stay of the Nigerian economy before independence and immediately after it, until the oil boom of the 1970s.

In the period before the 1970s, agriculture provided the needed food for the population as well as serving as a major foreign exchange earner for the country (Alabi and Alabi, 2009).

Most government policies have been directed towards accelerating economic development with the ultimate aim of transforming the economy into an industrialized one as well as the welfare of the population (Obiechina, 2007), hence cannot be attained without drastic boost in agricultural sector which is expected to act as a catalysts towards the realization of this goal.

The traditional role of agriculture in economic development provides the foundation for this position. The role includes product contribution, market contribution, factor contribution and foreign exchange contribution (Johnston and Mellor, 1961).

It is the main source of food for most of the population. It provides the means of livelihood for over 70 percent of the population, a major source of raw materials for the agro-allied industries and a potent source of the much-needed foreign exchange (Alabi, Aigbokhan and Ailemen, 2004).

REFERENCES

Abbott     P.    and    Thompson,   R.    (1987)   Changing   Agricultural Comparative Advantage, Agricultural Economics, 1, 1987, 97-112.

Adedeji A. (2002) “from the Lagos Plan of Action to the New Partnership for Africa’s Development and from the Final Act of Lagos to the constitutive Act: Wither Africa?,”. Keynote address prepared for presentation at the African Forum for Envisioning Africa to be held in Nairobi, Kenya, 26-29 April, 2002.

Adeyeye, V.A (1989) “Health and nutrition factors in labour productivity amongst Tobacco and non- Tobacco farmers in Oyo State”, NISER Monograph Series Number 7: 1- 46

Aigbokhan, B.E. (2001) “Resuscitating agricultural production for exports”, Paper presented at the 10th annual conference of zonal research units of the Central bank of Nigeria, 4 – 8 June,

Akaeze, H.O. (2010) ‘Consumer preference for imported rice in Nigeria-Perceived quality differences or habit persistence. Michigan State University.

Akande, S.O . (2002) An Overview of the Nigerian Rice Economy, NISER, Ibadan

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