ATTENTION:
BEFORE YOU READ THE CHAPTER ONE
OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE
PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COSTS N5,000 ONLY. THE FULL
INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS
PAGE. OR YOU CAN CALL: 08068231953, 08168759420
THE OIL
SECTOR VIS-À-VIS THE AGRICULTURAL SECTOR: THE NIGERIAN EXPERIENCE (1981-2007)
ABSTRACT
This study
aims at evaluating the oil sector vis-a-vis the agricultural sector in Nigeria
from 1981-2007. The role of agriculture in the Nigerian society has been quite
significant even in the pre-colonial times. The attractiveness of the Nigerian
agricultural sector to the colonialist largely formed the basis for the
development of the railway system from the north to the coast through the
eastern and western of the country given that there was the need to evacuate
agricultural produce from the hinterland to the coasts for onward shipment to
Europe as raw material to feed British industries. The agricultural sector used
to be the mainstay of the Nigerian economy. It provided for the nation,
generated revenue and foreign exchange earnings for the government, supplied
raw materials to the industrial sector, generated employment and contributed
over 50% of the Gross Domestic Product (GDP). This occurred until the 1970’s
when the oil sector came in and took over from agriculture in such a way that
there was a rapid decline in the agricultural sector output. Nigeria became
solely dependent on the oil sector for its revenue such that policies that were
formulated were usually in favor of the oil sector. This obviously has led to
the neglect of the agricultural sector as all focuses are on the oil sector.
This research work aims at determining the relationship between the oil sector
and the agricultural sector, the impact of the oil sector and the effects of
exchange rate on the agricultural sector and to find out ways to solve the
problem, and make some recommendations that can bring about positive change.
TABLE OF
CONTENT
CHAPTER ONE
– INTRODUCTION……………………………………. 1
1.1
Background of the study………………………………………………. 1
1.2
Statement of the problem……………………………………………… 5
1.3
Objective of the study…………………………………………………. 6
1.4 Research
hypothesis…………………………………………………… 6
1.5
Significance of the study………………………………………………. 7
1.6 Scope
and limitation…………………………………………………… 7
CHAPTER TWO
– LITERATURE REVIEW……………………………. 8
2.1.1
Theoretical literature………………………………………………… 8
2.1.2 Crude
oil and the Nigerian Gross Domestic Product……………….. 10
2.1.3 Crude
oil as a source of federally
collectable
revenue and source of energy…………………………………………………………………….. 13
2.1.4
Petroleum and Balance of Payment…………………………………. 15
2.1.5
Historical development of agriculture and
agricultural
sector in Nigeria 17
2.1.6 The
impact of petroleum production on
Nigeria
agricultural policy……………………………………………………………………… 22
2.1.7 The
effects of oil production on policy maker’s
perception
of the role of agriculture in Nigeria…………………………………………………….. 23
2.1.8 The
impact of oil revenue on the scope and
character of
the government’s intervention in agricultural development………………………………………….. …..
27
2.1.9 Past
effort at revamping agriculture in Nigeria………………………… 29
CHAPTER
THREE – RESEARCH METHODOLOGY……………………. 34
3.1 Research
design…………………………………………………………. 34
3.2 Research
methodology………………………………………………….. 34
3.3 Model
specification…………………………………………………….. 35
3.4 Method
of evaluation…………………………………………………… 37
CHAPTER FOUR
– DATA PRESENTATION AND ANALYSIS…………. 40
4.1 Data
presentation and analysis of result………………………………… 40
4.2 Economic
A priori expectation test…………………………………….. 41
4.3
Evaluation Based On Statistical Criteria (First Order Test)………….. 42
4.3.1 T-
test…………………………………………………………………. 42
4.3.2 F-
test…………………………………………………………………. 43
4.4 The
coefficient of determination R2……………………………………. 44
4.5 Economic
Criteria (Second Order Test)……………………………….. 45
4.5.1
Autocorrelation test………………………………………………….. 45
CHAPTER FIVE
– SUMMARY OF FINDINGS,
RECOMMENDATION
AND CONCLUSION……………………………………………………………. 47
5.1
Summary……………………………………………………………… 47
5.2
Recommendation…………………………………………………….. 49
5.3
Conclusion……………………………………………………………. 50
CHAPTER ONE
INTRODUCTION
BACKGROUND
OF THE STUDY
Agriculture,
according to Omidigi (1993), is an applied science that deals with the
preparation of land, cultivation of crops and rearing of animals.
Akinsami
(1973:p1) defined agriculture as the production of plants and animals useful to
man. It covers not only the cultivation of soil and the feeding and management
of crops and livestock, but also the preparation of plants, and animal products
for man’s use and the disposal of those products by marketing.
The role of
agriculture in transforming both the social and economic framework of an
economy cannot be overemphasized. It is a source of food and raw materials for
the industrial sector. It is also essential for expansion of employment opportunity,
for the reduction of poverty and improvement of income distribution for
speeding up industrialization and easing the pressure of balance of payment. In
essence, it has been the main source of gainful employment; from which the
nation can feed its teeming population, a regenerative, providing the nation’s
industries with local raw materials, and as s reliable source of government
revenue.
The
agricultural sector constitutes one of the most important sectors of the
Nigerian economy. Its importance stems from the abundance of agricultural
resources and the high percentage of the active population engaged in
agriculture. In addition to this, is its contribution to the country’s gross
domestic product (GDP) as well as foreign exchange earnings. (Moro (1995:29)).
The contribution of agriculture to GDP, in 1960 was 63%while the percentage
share was 74% of the total domestic exports. At this period, agriculture was
the mainstay of the Nigerian economy.
Oil or
petroleum, on the other hand, is a very versatile and flexible, non
–reproductive, depleting natural (hydrocarbon) resource that is a fundamental
input into modern economic activity, providing about 50% of the total energy
demand in the world, excluding former centrally planned economies. Oil exporting
countries of the developing world depend heavily on oil revenue for foreign
exchange earnings and for the government budget, in most cases reaching 90% and
above.
In Nigeria,
the oil sector has assumed a central role in the economy in such a way that it
cannot be overemphasized. In fact, Iyoha(2005) had it that between 1981 and
1999,Nigeria received over 228billion US dollars from petroleum export. The
inflow of foreign exchange from petroleum export has overwhelming influence on
the economy. The growth in GDP since the early 70s is largely attributable to
crude oil production.
Moreover,
our development plans were focused on the expected earning from crude oil
export as a source of finance. More specifically, the Nigerian revenue budget
since oil took a primal position in revenue attraction is directly a function
of the price per barrel of crude oil and the projected total sales.
Nigeria was
a predominantly agrarian economy before the discovery of oil in commercial
quantity in 1956 and remained so up to the early part of the 1970s, thereafter
oil exerted tremendous impact on the economy. In Nigeria’s attempt to make oil
exploration a lucrative business, there was a shift in its dependence from the
agricultural sector to the oil sector, largely based on the innumerable
benefits it derived from the later (oil sector). This attitude has brought
about a major decline in the agricultural sector and even other sectors of the
economy, thereby making the Nigerian economy a mono-economy.
Gone are the
days when ships used to sail from Nigerian parts, laden with agricultural
products such as cocoa, timber, groundnut, oil palm, rubber, cotton, cassava
etc, when the country derived most of its revenue from the export of
agricultural products, then the economy was diversified with more focus on the
agricultural sector. Then Nigeria’s budget reflected that it was proud of its
agricultural heritage. Then, agriculture used to be the backbone of the
economy, inviting foreign investors from far and near.
Nigeria’s
economy has gradually become one that is almost completely dependent on the oil
sector for its sustenance, thereby causing the neglect of the agricultural
sector that used to be the foremost of the Nigerian budget.
According to
Moro (1995), it is believed that the problem of food crisis has its roots in
the gradual transformation of the Nigerian economy accelerated with the impact
of the oil price increases during the 1970s, Nigeria who could provide her own
food, regardless of its population now has to import staple commodities such as
rice, sugar etc.
The
agricultural sector has gradually ceased to be what it used to be because of
the new rave for oil. States like Delta state Rivers Bayelsa etc are worst as
they all have tales of woe to tell, as the catastrophic effects of oil spillage
has led to inestimable losses that has led to gradual decline of agriculture in
some areas of the region.
Many
financial experts are of the view that an economy that largely depends on a
sector is definitely not a healthy one. A healthy economy is one that is
diversified and not mainstreamed. It appears as if Nigeria has put all her eggs
in one basket, standing at the risk of loosing if something should go wrong.
STATEMENT OF
THE PROBLEM
This
research work is determined to finding answers to the following problems stated
below:
The
persistent decrease in agricultural production for the period under review:
This has
resulted to scarcity of food supply with increased prices for them.
The problem
of inadequate modern farm implements:
This has
contributed to the decline in productivity, as the crude implements can no
longer increase output to meet with the increasing population and demand for
agricultural products.
The decline
in government’s revenue from the agricultural sector:
This trend
limits various development works that should have been carried out.
The problem
of shortage or inadequate local raw material for industrial use:
This in-turn
negatively affects the industrial development in the country, as industries are
forced to close up, owing to the inability to import the high cost of imported
raw materials.
OBJECTIVES
OF THE STUDY
This study
is designed to achieve the following objectives;
To determine
the relationship that exists between the petroleum sector, exchange rate, and
the agricultural sector in Nigeria.
To know the
relative contribution of both the petroleum and the agricultural sector to the
economy of Nigeria.
To determine
the causes of either a boom, or decline in any, and the economic implications.
HYPOTHESIS
The
hypotheses for this work are;
Ho: – There is no significance relation between the
petroleum and the agricultural production in Nigeria.
Hi: – There is a significant relation between
the petroleum sector and agricultural production in Nigeria.
SIGNIFICANCE
OF THE STUDY
This
research work is significant as it will be useful to policy makers and serves
as a reference material for members of the academia and the public to sustain
the economy.
SCOPE AND
LIMITATION:
This
research work covers only the period between 1981 and 2007, and only x-rays the
petroleum and the agricultural relativities.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following
instructions and information if you will like to order/buy our complete written
material(s).
HOW TO RECEIVE PROJECT
MATERIAL(S)
After paying the appropriate
amount (#5,000) into our bank Account below, send the following information to
08068231953 or 08168759420
(1)
Your project topics
(2)
Email Address
(3)
Payment Name
(4)
Teller Number
We
will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account
Name: AMUTAH DANIEL CHUKWUDI
Account
Number: 0046579864
Bank:
GTBank.
OR
Account
Name: AMUTAH DANIEL CHUKWUDI
Account
Number: 2023350498
Bank:
UBA.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
AFFILIATE
Comments
Post a Comment