Assessment of the persisting effects of increased public funding for agriculture in Nigeria

Abstract

AbstractRecent economywide forecast studies have identified government funding as essential for agricultural sector development and modernization in Nigeria. However, like many African countries, Nigeria has had challenges in meeting public agricultural expenditure pledges on a consistent basis. Despite volatility in public funding for agriculture from year to year, the Agricultural Transformation Agenda (ATA) of 2011–2015, an agricultural policy initiative led by the Nigerian Federal Ministry of Agriculture and Rural Development, represented a distinct departure from previous agricultural policies because of its multifaceted approach that included both increased expenditures on agricultural programs and other reforms designed to enhance agricultural modernization. The objective of this study was to determine whether there is empirical evidence of persisting effects from implementation of the ATA and to characterize such types of effects. The empirical analysis included both trade and farm household data, and the results showed that imports of seeds (maize and vegetables) and herbicides/pesticides were higher and less variable in the ATA and post-ATA period than in the pre-ATA period. Additionally, higher percentages of farm households purchased fertilizer and seed and used herbicide in the post-ATA period than in the early ATA period.