Impact of National Recurrent Expenditure on Nigeria Agricultural Growth from 1990-2017

Abstract

The study evaluated the impact of the national recurrent expenditure on Nigeria’s agricultural growth from 1990 to 2017.The study adopted ex-post-factor research design. Time series data obtained from the Central Bank of Nigeria publications, journals, bulletins and proceedings were used for the study. The data were analysed using percentage, mean ratio and error correction model regression analysis. The result showed that the mean ratio between recurrent expenditure on agriculture to other sectors of the economy is 0.070:0.930 respectively. The result of unit root test showed that the natural log function of agricultural share of GDP and it determinants were stationary at a mixed order of co-integration while the lag length is one (1). The error correction model regression analysis showed the R2value was 0.999998, indicating that 99% changes in the agricultural share of the GDP was accounted or explained by the explanatory variables. The Durbin-Watson statistics value of 1.096920 indicates absent of autocorrelation. Wald test result showed that the F-statistics (23.126) was greater than the F-tabulated (4.32) at p-value < 5%, this implies that the recurrent expenditure on agriculture has a significant impact on the agricultural share of GDP from 1990 to 2017. Therefore, the study recommended that greater percentage of the recurrent expenditure should be allocated to agriculture so as to accelerate agricultural development in Nigeria.