Impact of Agricultural Output on Standard of Living in Nigeria (1970-2016)

Abstract

This study investigated the impact of agricultural output on standard of living in Nigeria via crops, livestock, forestry and fishery. Agricultural output is expected to be the bane of improved welfare of Nigerians as a result of many resources allocated to the sector through government policies. But despite government efforts in the sector, it is still characterized with low yields and limited areas under cultivation. In view of this, secondary data were obtained from CBN statistical bulletin from 1970-2016 and analyzed using cointegration and error correction model (ECM). It was found that standard of living is elastic with respect to crops, forestry, fishery and livestock output in the short and long run estimates. It suggests that standard of living’s response to agricultural output in the short run is higher than the long run. Furthermore, standard of living adjusts towards its long run level with about 26% of the adjustment occurring in the first year. The study recommended, among other things, that more resources be allocated to agricultural sector, expansion be made in agricultural cultivation and training be conducted for farmers so that the impact of the sector can be felt on the living standard in Nigeria.