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The Economic Role of Nigeria’s Subsistence Agriculture in the Transition Process: Implications for Rural Development

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  • Apata, Temidayo Gabriel
  • Folayan, A.
  • Apata, O.M.
  • Akinlua, J.

Abstract

This study examined the role of subsistence-oriented agriculture in Nigeria in the 1990s to 2000s. The start out by discussing the diverging economic effects of the growth of subsistence agriculture in Nigeria since the transition process started. The quantitative analysis of this sector’s role is carried out by means of an applied Computable General Equilibrium (CGE) model applying a 1994 Social Accounting Matrix (SAM) as base year data. The innovation of the article is to disaggregate primary agricultural production not by products but by farm types, which enables us to distinguish their institutional and economic characteristics. The study simulates two Structural Adjustment Programme (SAP) of the government. The results of the post SAP period highlight that Nigeria’s subsistence agriculture was an important shock absorber against further agricultural output declines during transition. A simulation, which looks into the effects of a devaluation of the Nigeria Naira, shows that the financial crisis should have increased the relative competitiveness particularly of large-scale crop farms versus small-scale farms. The reforms of successive governments show that efficiency enhancing institutional change would benefit both large-scale and small-scale farms. However, within small-scale agriculture, a shift from subsistence to commercial agriculture would take place.

Suggested Citation

  • Apata, Temidayo Gabriel & Folayan, A. & Apata, O.M. & Akinlua, J., 2011. "The Economic Role of Nigeria’s Subsistence Agriculture in the Transition Process: Implications for Rural Development," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108942, Agricultural Economics Society.
    • Handle: RePEc:ags:aesc11:108942
    DOI: 10.22004/ag.econ.108942
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    References listed on IDEAS

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    1. Nadia Belhaj Hassine & Veronique Robichaud & Bernard Decaluwé, 2010. "Agricultural Trade Liberalization, Productivity Gain and Poverty Alleviation: A General Equilibrium Analysis," Working Papers 519, Economic Research Forum, revised 05 Jan 2010.
    2. Andrew Dorward & Jonathan Kydd & Colin Poulton & Dirk Bezemer, 2009. "Coordination Risk and Cost Impacts on Economic Development in Poor Rural Areas," Journal of Development Studies, Taylor & Francis Journals, vol. 45(7), pages 1093-1112, August.
    3. Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, vol. 126(2), pages 269-303, June.
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    1. Apata, T.G. & Sanusi, R.A. & Obaisi, A. & Ajani, O., 2016. "Exploration of public spending and agricultural growth. Comparative analysis of Nigerian and Malaysian agricultural growth (1970-2010)," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246922, African Association of Agricultural Economists (AAAE).
    2. Grace N. Ofoegbu & David O. Akwu & Oliver O, 2016. "Empirical Analysis of Effect of Tax Revenue on Economic Development of Nigeria," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 6(10), pages 604-613, October.
    3. Apata, T.G. & Apata, O.M. & Kehinde, A.L., 2015. "Explaining the ‘hungry farmer paradox’: Through dynamics of Nutritional Scarcity and Its Determinants among Farming Households in Southwestern, Nigeria," 2015 Conference, August 9-14, 2015, Milan, Italy 210955, International Association of Agricultural Economists.
    4. JOSEPH, Fineboy Ikechi & OMODERO, Cordelia Onyinyechi & OMEONU, Obioma Manasseh, 2019. "The Role Of Tax Revenue And Foreign Direct Investment In Promoting Economic Progress In Nigeria," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 19(3), pages 33-54.
    5. Sanzidur Rahman & Chidiebere Daniel Chima, 2018. "Food Energy Availability from Agriculture at the Farm-Level in Southeastern Nigeria: Level, Composition and Determinants," Agriculture, MDPI, vol. 8(5), pages 1-18, May.
    6. Esther Shupel Ibrahim & Bello Ahmed & Oludunsin Tunrayo Arodudu & Jibril Babayo Abubakar & Bitrus Akila Dang & Mahmoud Ibrahim Mahmoud & Halilu Ahmad Shaba & Sanusi Bello Shamaki, 2022. "Desertification in the Sahel Region: A Product of Climate Change or Human Activities? A Case of Desert Encroachment Monitoring in North-Eastern Nigeria Using Remote Sensing Techniques," Geographies, MDPI, vol. 2(2), pages 1-23, April.

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