Government Expenditure and Agricultural Output in Nigeria: An Empirical Analysis (1993–2023)
- Onuoha Onyinyechi Joy
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DOI: 10.5281/zenodo.16730575
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UKR Journal of Economics, Business and Management (UKRJEBM)
This study examines the impact of government expenditure on
agricultural output in Nigeria from 1993 to 2023. It investigates whether
public spending significantly influenced the performance of the agricultural
sector during the period. Anchored on one research question and a null
hypothesis, the study employed a quantitative ex-post facto design using
secondary time-series data sourced from the Central Bank of Nigeria and the
National Bureau of Statistics. Key variables included recurrent and capital
expenditures on agriculture, total government expenditure, and agricultural
output, all adjusted to constant naira. Data were collected using a validated
extraction template and analyzed through Ordinary Least Squares (OLS) multiple
regression, alongside descriptive and inferential statistics. Findings
indicated a positive but statistically insignificant relationship between
government expenditure on agriculture and agricultural output (p > 0.05).
Recurrent expenditure had minimal effect, while capital expenditure, though
potentially more effective, was undermined by policy inconsistencies and poor
implementation. The study concludes that Nigeria’s public agricultural spending
structure and execution have not sufficiently enhanced sectoral productivity,
mainly due to systemic inefficiencies and weak institutional capacity.
It
recommends a strategic reform of agricultural financing to prioritize capital
investments in rural infrastructure, mechanization, and agricultural extension
services. Additionally, improving fiscal discipline, policy consistency, and
transparency in budget execution is essential for enhancing the effectiveness
of public investment and achieving sustainable agricultural development.