Question

(a)what are the effect of structural adjustment programme on agriculture in Nigeria? . (b) Discuss the various policies initiatives introduced by federal government of Nigeria in order for agriculture sector to fulfil it's role. (c) discuss marketing functions, proceed to reveal the special problems in agricultural marketing.

Answer 1

a)

In 1986 Nigeria introduced the Structural Adjustment Program (SAP) to reform its trade policies, foreign exchange system, and business and agricultural regulations. Sap main purpose was to pay attention to export generation, typically in the agricultural sector, prevent an overvalued exchange rate, maintain macroeconomic stability, restructure and alter the production and consumption pattern of the economy, limit distortion in price and dependence on the export of crude oil, and curtail the consumer goods import. Between the period from 1981 and 1985, an average deficit of 5.7 percent was experienced due to an expansive nature of fiscal operations by government in the 1980s. A main objective of SAP for reducing the ratio to 3.0 percent in the short-run, and finally attaining the fiscal balance for macro-economic stability was achieved. Between1986-1993, SAP instead of narrowing the gap resulted in an average deficit GDP ratio of 9.2 percent due to the disappointingly government's fiscal operations. Moreover non-debt and debt service depicted that the latter rose increasingly at the former's expense, to the detriment of real growth in an economy

b) In the 1960s and 1970s the agriculture policies were enunciated in piecemeal fashion by respective State and Regional Governments. The subsequent and during this period, national policies were outlined in the Development Plans for the period from 1962-68, 1970-74, 1975-80 and 1981-85. In the nation major food crisis in the country lead to the set up of the programmes such as in (1976-1979 - “Feed the Nation”; and 1979-1983 the “Green Revolution”. The programmes targeted on the providing subsidised inputs, strengthening agricultural production, development of community, and access to credit. However Federal and States policies have lacked an integrated and holistic work to agricultural development. Most of these policies have been neither harmonised nor co-ordinated for a common goal. Federal and State policies were usually implemented simultaneously with conflicting view points and without the gains of economics of scale. In 1978, the enactment of the Land Use Act caused an historic turning point in country for land use management. In 1987 movement was reversed with the structural adjustment programmes (SAPs) that targeted to reduce the country economy’s dependency on oil and promoting the private sector for driving the growth. The Nigerian government in 1998 turned its attention to the agricultural sector once again and adopted an agricultural policy that targeted ensuring food security for the population with development of local production

In 2001, Agriculture in Nigeria: The New Policy Thrust, government in its strategic planning frameworks assigned an ambitious role assigned the agricultural sector. The strategy of National Economic Empowerment and Development wherein emphasis of the economic development by the private sector; and 7-point agenda was adopted in May 2007 with an intent to achieve the 2015- Millennium Development targets and “2020 Vision” plan. It means increasing six-fold the current domestic production in agriculture sector.

c) Nigeria in the past two decades undertook extensive economic reforms to reduce the government's role and improve the role of marketing in the country's economy. The marketing reforms occupied a main role in the liberalisation efforts. The markets were increasingly integrated. There was a removal of price control, changes in foreign exchange trade, and closure of state-owned enterprises that promoted monopolized agricultural trade