AN EVALUATION OF AGRICULTURAL PUBLIC SPENDING IN NIGERIA

AN EVALUATION OF AGRICULTURAL PUBLIC SPENDING IN NIGERIA

BACKGROUND OF THE STUDY

Two key government policy papers in Nigeria examine agriculture's potential contribution to economic development: I the National Economic Empowerment and Development Strategy (NEEDS), and (ii) the New Agricultural Policy Thrust (NAP). NEEDS, Nigeria's own poverty-reduction plan, was launched in 2004 and emphasizes the need of expanding agricultural production and ensuring food security while the government works toward its larger objective of diversifying its economy away from oil (NPC 2004). The National Agriculture Policy, which was adopted in 2001 and revised two years later, does not present a detailed action plan, but rather articulates a vision of how agriculture can become a driver of growth and poverty reduction, identifies binding constraints to that vision's realization, and proposes policies to overcome those constraints (FMARD 2001). Agriculture is receiving fresh focus in Nigeria's national development strategy, as seen by the heavy emphasis on agricultural expansion under NEEDS and NAP. However, strategies and policies by themselves would not be enough to turn Nigerian agriculture into a vibrant engine of pro-poor growth. Strategies and policies will have little influence unless they can be converted into a workable action plan that is backed up by adequate public spending and backed up by legislative action (Okonkwo, 2009). With Nigeria's agricultural sector continuing to underperform in comparison to the government's ambitious targets, tough questions are being raised about the quantity and quality of public agriculture spending, as well as the appropriateness of the institutional environment in which public spending decisions are made. Answering those concerns would need a full study of Nigerian agriculture's public expenditure patterns and developments. This initiative aims to accomplish four primary goals: create a strong database on agricultural public spending; diagnose the volume and content of agricultural spending in the recent past; comprehend the budget procedures that govern resource allocation in the agriculture sector; and provide preliminary policy proposals for increasing the efficiency of public expenditure in the sector. Understanding the pattern of public spending in a sector, as well as the process by which spending choices are made, is typically at the center of any examination of public spending.

1.2 STATEMENT OF THE PROBLEM

Agriculture is receiving fresh focus in Nigeria's national development strategy, as seen by the heavy emphasis on agricultural expansion under NEEDS and NAP. However, strategies and policies alone would not be enough to convert Nigerian agriculture into a powerful pro-poor economic engine (Ogunsumiet al, 2005). Strategies and policies will have little influence unless they can be converted into a workable action plan that is backed up by adequate public spending and backed up by legislative action (Nwoko et al, 2007). With Nigeria's agricultural sector failing to meet the government's lofty expectations, tough concerns are being raised regarding the quantity and quality of public investment in agriculture, as well as the suitability of the institutional structure in which public expenditure choices are made (Nege, 2007). Answering those concerns would need a full study of Nigerian agriculture's public expenditure patterns and developments.

1.3 OBJECTIVES OF THE STUDY

1. Establish a robust database on public expenditure in the agricultural sector diagnose.

2. Examine the level and composition of agricultural expenditure in the recent past.

3. Understand the budget processes that determine resource allocation in the sector.

4. Draw preliminary policy recommendations for improving the efficiency of public expenditure in the agricultural sector.

1.4 RESEARCH QUESTIONS

1. How much is being spent on agriculture, and how is spending distributed across the three tiers of government (federal, state, and local)?

2. In what areas (subsectors, programs, and projects) are public expenditures in support of agriculture being made?

3. How are decisions on public expenditures in support of agriculture made, and by whom?

4. What recommendations can be made to support a more effective and efficient use of public funds for agriculture?

1.5 SCOPE OF THE STUDY

The scope of the study was restricted because preliminary investigations revealed that assembling and validating core expenditure data in Nigeria represented a major challenge in and of itself. It therefore seemed prudent not to set out an overly ambitious set of objectives, the realization of which might be compromised by a lack of data. This research project thus should be viewed as a preliminary analytical exercise designed to address basic questions about public expenditure in the agriculture sector.This study covers the agricultural public spending in Nigeria from 2001 to 2005.

1.6 SIGNIFICANCE OF THE STUDY

Because understanding the pattern of public spending in a sector and the process by which spending choices are made is generally at the heart of any public expenditure review, this study will be significant. Further research, which would expand a public expenditure review to look at not just the quantity and quality of spending, but also its efficiency and effect, would offer an essential layer of information that might help the country make better policy decisions. This research will also contribute to the current literature on the subject and will serve as a resource for academics, researchers, and students who wish to pursue future research in this or a similar field.

BUY THIS TOPIC ON WHATSAPP

Related Project Materials

ABSTRACT

This study was carried out to examine the influence of educational technology on secondary...