AGRICULTURE BUDGET TRENDS ANALYSIS REPORT

 

The Agriculture sector in Africa's most populous country accounts for over 40 percent of   Nigeria's total economic activities - employing a little above 60 percent of the working

population. However, due to Nigeria's crude farming practice, productivity is low and far in-between. Crop production is primarily rain-fed while Farm power among small-scale farmers in most parts Nigeria is largely human or animal driven and relies majorly on the use of the hoe and other hand tools limiting the amount of land that can be cultivated, and by extension limits the productivity of individual farmers.

The estimated 45,000 tractors in the country translate to a density of 5.7 tractors per 100 square kilometers, far short of what is required. At the sub-national level, budgetary allocation to Agricultural interventions is grossly inadequate.

For instance, In nearly all the states where this study was carried out, agricultural investment is remarkably low and falls short of the 10 percent Maputo declaration recommendation which has been adopted by the states, with states averaging between 1-3 percent. Kebbi is the only State where agricultural expenditure as a percentage of the total budget is higher in 2019 than in 2014.

Several state governments have also deployed funding strategies to unlock growth in the agricultural products of their comparative advantage. It is worth noting that in Katsina and Taraba, the share of spending to agriculture is projected to rise by 2019-2021 (to 8.2 percent and 9.6 percent respectively), but much of this increase is driven by ambitious, perhaps unrealistic revenue projections and reliance on donor financing that may not in fact materialize largely due to the inability of the state to match the required counterpart funding for agricultural initiatives.
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