ANALYSIS OF OUTCOME EFFECT OF AGRICULTURAL PRODUCTIVITY ON POVERTY REDUCTION IN NIGERIA

Abstract

The study examines relationship between agricultural productivity and poverty reduction, in Nigeria between 2000-2020. Secondary data were sourced from Central Bank of Nigeria (CBN), statistical bulletins and World Bank Development Indicators.; Agriculture budget allocation, Commercial banks credit, Microfinance bank and Food production index are the employed explanatory variables in this study. Unit root test of Augmented Dickey Fuller were used, and the variables were found to be stationary at the first difference 1(1).The regression model established that, there is  relationship between agricultural productivity as (represented by  Agriculture Budget Allocation(AGB),Commercial Banks Credit to Agriculture(CBC), Microfinance Banks Credit to Agriculture(MBC) and Food Production Index(FPI) and poverty  (proxied) by Human Development Index(HDI).However only two explanatory variables were significantly influence poverty reduction in the model: Agriculture Budget Allocation(AGB) and Microfinance Banks Credit to Agriculture(MBC),while Food Production Index(FPI)and Commercial Bank Credit to Agriculture(CBC) are of no remarkable effect on poverty reduction in Nigeria within the frame of the investigated years .The results obviously revealed the state of food insecurity in Nigeria despite all endowed natural and human resources gift of the nation. Consequently, there is an urgent need to transform agricultural sector,as to boost Nigeria food production status for her  ever increasing population.