Government Agricultural Spending and Agricultural Output in Nigeria (1999-2012)

This paper examines the effect of government agricultural spending on agricultural output in Nigeria. The model built for the study proxy Agricultural Output as the endogenous variable, a function of rate of government expenditure on agriculture, management level (dummied), technological level (dummied), labour in use proxy as the exogenous variables. Annual time series data was gathered from central bank of Nigeria, statistical bulletin, national bureau of statistic (NBS) CBN economic and financial Review bulletin and CBN annuals reports spanning from 1999 to 2012. The study used descriptive test statistic and econometric techniques of Augmented Dickey- Fuller (ADF) unit root test, and Engle Granger single line co-integration test for empirical analysis. The results of unit root suggested that, all variables in the model are stationary at a level. The co-integration test shows that, long- run equilibrium relationship exist among the variables. The study recommends that measures should be undertaken to drive agricultural sector through consistent policies, robust funding, and infrastructural development, judicious use of allocated resources and above all, a genuine democracy and good governance in Nigeria in order to achieve a corresponding output/performance of the sector in Nigeria.