Effect of Agricultural Public Expenditure on Crop Output in Nigeria. (1990-2020)

Abstract

This study determined the effect of agricultural public expenditure on crop output in Nigeria from 1990-2020. The objectives of the study were to determine the trends of agricultural expenditure and output. The theories employed for this study includes Musgrave Theory of Public Expenditure, Wagner’s Law/ Theory of Increasing State Activities, Keynesian Theory of Public Expenditure, Input–Output Model. These theories were ascertained relevant to the subject matter. This study employed ex-post factor research design and relied on time series data. Pre and post -estimation diagnostics tests were adopted to check for reliability of the data used. From the regression result, Agricultural Credit Guaranteed scheme fund (ACGSF) brought about a -0.803412-unit increase in crop production for the period under study. The researcher concluded that ACGSF has impacted positively on the growth of the agriculture sector and more of the funding to agriculture should be channelled through the scheme to be able to bring about the desired agriculture growth, also FAG should be sourced for and harnessed properly as they did not perform well in boosting agriculture output in the country. It was recommended that FAG should be properly utilized to bring about increased output in livestock production and forestry production. ACGSF should properly include rice farmers so they can experience gains other crops are experiencing courtesy (ACGSF). Agricultural public expenditure (ACGSF, PCEXA, PREXA and FAG) should be channelled to beans production, as from the regression output not of the funding had any significant impact on beans production.