Impact of Fertilizer Policy on Crop Production in Nigeria.
ABSTRACT
This study examined the impact of fertilizer policy on crop production. The various trends in fertilizer policy reform were explored. Specifically, the fertilizer policy was studied under two policy regimes: the pre-liberalization and the liberalization periods.
The first period is between 1986 and 1996, which otherwise constituted the pre- liberalization era while the years between 1997 and 2006 make up the second period, otherwise called the liberalization era.
Secondary data on the distribution of fertilizer, usage-rate, fertilizer cost, yield of selected cereals, as well as the time series features of the variables, test for cointegration and the error correction mechanism were used in this research.
The descriptive analysis, students’ t-test and the regression model were used to analyze the data. It was discovered that there was an increase in the distribution of fertilizer in the second period. There was also an increase in the yield of the selected cereals.
Among the selected crops, rice had the highest yield in the first era. The quantity of fertilizer distributed, the usage-rate of fertilizer, the price and the policy periods of the variables were found to have significant effect on agricultural production.
The quantity of fertilizer distributed and the price of fertilizer were found to have positive effect on agricultural production. In order to increase agricultural production in Nigeria through an effective fertilizer policy: the distribution of fertilizer to farmers has to be timely.
Farmers should be educated on the dangers of excessive use of fertilizer in order to prevent environmental pollution. Complementary use of inorganic and organic fertilizer should be encouraged so as toensure eco-balance and food security.
TABLE OF CONTENTS
Dedication ——— i
Acknowledgement —– ii
Table of contents ——– iii
List of tables ———- v
Abstract ——- vi
CHAPTER ONE: INTRODUCTION
1.1Background Information ———- 1
1.2 Problem Statement ———- 4
1.3 Objective of the Study ——– 5
1.4 Research Hypotheses———– 6
1.5 Justification ——— 6
CHAPTER TWO: LITERATURE REVIEW
2.1 Fertilizer Procurement, Distribution and Subsidy —— 7
2.2 Constraints to Fertilizer Supply and Use — 11
2.3 Policy Performance Criteria —— 13
2.4 Environmental Issues on the Use of Fertilizer — 14
2.5 Economic Regulation ——– 16
2.6 Economic Deregulation — 16
2.7 Theoretical Framework —– 17
2.8 Analytical Framework– 20
2.9 Time Series Features of the Variables —– 23
2.10 Relationship between the explanatory and explained variables —– 23
2.11 Residual test for Cointegration —– 24
2.12 The Error Correction Model — 24
CHAPTER THREE: METHODOLOGY
3.1 Study Area ——- 25
3.2 Period of Study — 26
3.3 Data Collection —- 26
3.4 Data Analysis — 27
3.5 Model Specification —– 27
CHAPTER FOUR: RESULT AND DISCUSSION
4.1 Distribution of fertilizer between 1986 -1996 and 1997-2006 ——– 30
4.2 Usage-rate of Fertilizer between ‘86/’96 and ‘97/’06 —————— 33
4.3 Yield of selected Fertilizer Dependent Crops for the two periods — 36
4.4 Determinants of Time Series Properties 37
CHAPTER FIVE: SUMMARY, RECOMMENDATION AND CONCLUSION
5.1 Summary – 44
5.2 Recommendation — 44
5.3 Conclusion — 45
References ——- 46
INTRODUCTION
1.1 Background of the Study
Fertilizer is one of the major farm inputs for achieving the green revolution objective in the world. According to Dada (2006), during the Africa Fertilizer Summit, it is generally believed that not less than 50% of incremental crop output in the past five decades is attributable to fertilizer use.
Owing to fertilizer use, along with other inputs such as seeds and agro chemicals, many countries of the world with high population densities have been able to achieve, relatively, food self-sufficiency in the past decades (World Bank, 2004).
Unfortunately, the benefits of green revolution did not accrue significantly to sub- Saharan Africa to any perceptible extent due, among other reasons, to inadequate use of fertilizer (FGN, 2005).
The Food and Agriculture Organization (FAO) estimates of fertilizer need in Africa concomitant to yield and area expansions for meeting the Millennium Development Goals (MDGs) amount to an increase in total nutrients of 47% or 26% average annual growth rate (UN, 2000).
This is why members of New Partnership for African Development (NEPAD) of the African Union (AU) had formulated the Comprehensive Africa Agriculture Development Plan (CAADP) predicated on increased and efficient use of fertilizer.
REFERENCES
African Institute for Applied Economics (AIAE) (2005). Fertilizer Procurement, Distribution and Administration. In: Improving legislative oversight functions, A Technical Assistance Project to the National Assembly, Enugu:AIAE.
Alimi, T, O.C. Ajewole, O.O. Awesola and E.O. Idowu (2006). Economic Rationale of Commercial Organic Fertilizer Technology in Osun State of Nigeria. Retrieved on 26.12.2009 from www.horticulture.researchjournals.pdf.
Ayinde, O.E., M.O. Adewumi and F.I. Omotosho (2009). Effect of Fertilizer Policy on Crop Production in Nigeria. The Social Sciences Vol.4(1): 53-58, 2009 ISSN:1818-5800. Retrieved on 08.01.2010 from htt://www.medwellpublishing. com/journals.asp?
Bello, A. (2006). National Fertilizer Policy for Nigeria. Draft for the National Stakeholders’ Workshop, Abuja.
Central Bank of Nigeria (2006). Economic Report of Regional Research and Statistics Unit. Vol. 3.
Confidential Draft Assessment (2005). Nigeria Government Fertilizer. Retrieved on 15.01.2008 from http//www.usaid.gov/ng/downloads/reforms.