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PUBLIC SECTOR INVESTMENT AND AGRICULTURAL DEVELOPMENT IN ABIA STATE, NIGERIA: 2000 – 2023
Author(s): Akpan, O. D. Dokun, O. I. and Ogbaji E. O.
Volume/Issue: Volume 5 , Issue 2(2025)
ABSTRACT:
This paper assessed the effects of government investment in agriculture in Abia State, Nigeria,between 2000 and 2023 and the impact of government investment on agricultural productivity, foodsecurity, and rural development. The research design used in the study was descriptive in natureand was based on second hand data accessed on government reports, budget documents andstatistical publications. The data analysis was carried out by use of descriptive statistics, trendanalysis and regression analysis to establish the relationship that exists between agriculturalproductivity and public investment. The findings revealed that the total government spending onagriculture had increased during the study period but the interest the sector had in the state budgetwas relatively low (varying mostly below 3), which demonstrated that the agricultural sector wascontinually underfunded. The portion of capital expenditure paid out on agriculture expenditurewas more substantial than that of recurrent expenditure indicating the preference towardinfrastructure and physical projects. There was however inadequate funding to extend services,training, and support operations of these investments and densely reduced the sustainability of theinvestments. The findings also showed that the variables of public investment including capitalexpenditure, development of infrastructure, subsidies, credit scheme and federal transfers weresignificant and positive to the agricultural productivity. The crop yields, output levels and laborproductivity were enhanced by agricultural subsidies and credit schemes especially in the peakimplementation periods. Although these were positive results, there are issues associated with thissuch as corruption, slowness of funds being given to projects, absence of good monitoring systemsand inconsistency of policy that hampered the overall effectiveness of governmental investment inthe industry. The paper is therefore concluding that though the role of public sector investment inagricultural productivity of Abia state is positive, there is a need to fund the sector more, have abetter governance, and effective mechanisms of monitoring the working agricultural development programs.
KEYWORDS:
Public sector investment, Agriculture, Agricultural productivity, Budget allocation,Abia State, Nigeria.
