ABSTRACT

In Nigeria, several advocacies have been raised in different for over time that
agriculture is capable of reducing poverty in the country. An attempt to empirically
validate the above argument has generated a policy mix in the literature. Provision
of sufficient food and elimination of abject poverty have usually been the
conventional benefits of agriculture to any society. Meanwhile, despite the fact that
Nigeria is an agrarian society, food insecurity and poverty have become the issues
of concern among both scholars and policymakers in the recent times. This
research was carried out to provide empirical information on the relationship
between agricultural production and the growth of Nigerian economy with focus
on poverty reduction. Meanwhile, agricultural output causes a significant reduction
in the poverty level. Also, one-way feedback relationship runs from agricultural
output to the poverty level in the country. This implies that when poverty reduction
is the target of the policymakers in the country, manipulating agricultural output
will induce the reduction in poverty level in the long run. Also the government
should possess political goodwill to revamp agricultural sector.
Keywords: Sustainable agricultural sector, Poverty eradication, Agricultural
Investment,

1
1.0 Introduction
A sustainable agricultural sector is responsible for provision of food for a country’s
increasing population; raw material for industries; employment opportunities; and
generation of foreign exchange for economic development. Agriculture is the
major driving force for major countries in SSA countries; it stimulates sustainable
rural development and enhances the living conditions of local communities (Corral
et al. 2017). It contributes considerably to the growth of GDP, i.e., a unit change in
agricultural output brought about 34.4% changes in GDP (Olajide et al. 2012).
Likewise, Ogbalubi and Wokocha (2013) found that agriculture contributed to
GDP of countries like Argentina, 1.1%; China, 13%; Egypt, 13.5%; South Africa,
9%; the United States, 1.1%; and Nigeria, 26.8%. However, it provides labor force
in Israel, 3.7%; Egypt, 32%; Brazil, 32%; and Nigeria, 70%. This infers that the
richer the country, the lesser the agricultural contribution to GDP. The importance
of agriculture in poverty reduction and economic development is ambiguous. It
was confirmed in China, a populated country of about 1.3 billion that enough food
was produced for the populace through agriculture. Nonetheless, China is a major
exporter of agricultural products in the world while its increasing agricultural
output reduced poverty approximately a quarter or more (Jamal et al. 2018). In the
case of Nigeria, the incidence of poverty has been on the increase since 1980 and
the empirical evidence has shown that half of its population lives in absolute
poverty. Reports by Bello et al. (2009): poverty was negligible in Nigeria in the
1960s and the 1970s due to stable growth in per capita income. This transpired
because most of the labor forces were absorbed in the agricultural, public, and
industrial sectors. But in the late 1970s and early 1980s, when oil price began to
drop in 1982 and private income and per capita income began to decrease, poverty
was triggered into the economy. Poverty is one of the key hurdles to growth and
2
development in Nigeria (Gangas 2017). The level of poverty is pervasive despite
the increasing GDP which is not proportional. For instance, the poverty incidence
in 2003–2004 was 64.2% of the population which implies that approximately 85
million people lived below the poverty line. Moreover, in 2010, the fraction
decreased to 62.6%, giving a total of 95million people within the category (World
Bank Indicators 2014). These have posed a threat to the general performance of the
economy and cannot be overlooked in order to attain sustainable development.
Nevertheless, growth and development cannot be achieved without attention to
poverty reduction (Jelilov and Musa2016). Despite the rapid economic growth in
Nigeria whereby GDP increased by 69.7% between 1992 and 2009, it decreased to
27.21% between 2009 and 2016, but the poverty gap ratio reduced from 31.1% to
21.8% from 1992 to 2009 (World Bank 2015). This infers that the fraction of the
poor population has slightly decreased but a significant percentage still live in
poverty. The pervasiveness of poverty in different continent of the world are major
concern and debate among scholars and researchers. Thus, intervention by
governmental and nongovernmental agencies with international organizations,
wherein public and private investment in agriculture has not been active and
poverty has been prevalent in the past 30 years (FAO 2012). Then, with the new
implemented SDGs, the countries have strengthened their commitment to end
poverty and achieve sustainable growth by the year 2030. As part of this
commitment, individual countries will have to pave its pathway out of poverty
(FAO 2012). Therefore, an optimal agricultural performance functions to decrease
poverty through price and income channels, hence, increase in the agricultural
income will help to reduce poverty. Ogen (2007) as cited in Olajide et al. (2012)
believed that agricultural sector possesses a multifunctional impact on a country’s
socioeconomic and industrial sector. From the aforementioned, it is of the opinion
3
that adequate and active participation in agriculture can effectively reduce poverty
especially in the rural areas where there is availability of labor and land
distribution.

4
2.0 LITERATURE REVIEW
2.1 Poverty
Poverty is a multidirectional socioeconomic problem. It is a major phenomenon in
developing countries with different dimension and facet. It is a global issue which
is prominent in sub-Saharan African (SSA) countries as it affects over 767million
people living in extreme poverty while two third live in rural areas (World Bank
2016). It is a state in which an individual is unable to cater for basic needs of food,
clothing, and shelter, lack of skills, gainful employment, and self-esteem.
Furthermore, poverty as cited in Aderonmu (2010) is the lack of command over
basic needs; undergoing insufficient level of consumption and the inability to attain
minimum standard of living and high position in the society (Ravallion and Bidani
1994). On the other hand, poverty can be considered as a “virus” which extends
widely among populace in SSA countries. However, the “virus” must be
eliminated or limited in order to attain growth and development in the region
(Jamal et al. 2018). It is also a person’s discernment which is a function of his
present experience, environment, and his definition of a good life (Fasoranti 2010).
Aku et al. (1997) viewed poverty from five aspects: (i) individual deprivation of
health, literacy, nutrition, education, and self-confidence; (ii) social deprivation in
denial from participatory freedom in social, economic, and political activities; (iii)
economic deprivation in denial of access to assets, income, and finance; (iv)
cultural deprivation in relation to knowledge, beliefs, values and information; and
(v) political denial of freedom in personal decision-making. Furthermore, as cited
in Fasoranti (2010), poverty is a state of unconscious deprivation (Odusola 2001),
the incompetence in carrying out certain activities (Desai 1992), and lack of
adequate basic requirements of life (Oladunni 2001).

5
2.2 Global Issues on the Economic Importance of Agriculture for Poverty
Reduction
Poverty eradication was the first of the eight Millennium Development Goals
(MDGs) which was proposed to be attained by 2015. It was one of the paths to
ensure that the new development agenda leaves no one behind. The successes of
the MDGs proved that global action worked. Though, the MDGs helped lift
billions of people out of poverty over the last two decades, its continuity will
definitely aid the general future ambition. In accordance to these developments, the
UN Member State adopted a new agenda: Sustainable Development Goals (SDGs)
which is made up of 17 goals aimed at a universal transformation for a better
world. Similarly, the foremost goal of the SDGs is also “end poverty.” This shows
that poverty is a global concern that demands encompassing efforts to achieve
sustainable growth. Accordingly, the international development community has
ascertained that agriculture which is the main occupation of people in poorest
countries is essential for economic growth and poverty reduction. Though, in
eradicating extreme poverty, the key indicator is the proportion of the population
living beneath the international poverty line of $1.25 which allows assessments
over time. Schultz (1979) in (Cervantes-Godoy and Dewbre 2010) stated that
“Most of the people in the world are poor, so if we knew the economics of being
poor we would know much of the economics that really matters. Most of the
world’s poor people earn their living from agriculture, so if we knew the
economics of agriculture we would know much of the economics of being poor.”
Globally, extreme poverty is prevalent in rural areas in spite of increasing
urbanization. In the present world, over 1.2 billion people are extremely poor,
therein 75% live in the rural areas and depend mostly on agricultural activities like
fishery, forestry, livestock, and other activities for survival (Andriquez and
6
Stamoulis 2007). The percentage rate of poverty (however, not in all countries) has
steadily declined in the past 30 years (World Bank 2008). According to the World
Bank Report as cited in Umo (2012), agriculture is one of the most important
options enhancing food security, driving economic growth, and overcoming
poverty in SSA countries. The incidence of poverty is prominent worldwide but
commonly dominated in developing countries such as South America, Asia, and
sub-Sahara African countries. The majorities of the population in SSA resides in
rural areas and depend directly or indirectly on agriculture, wherein, higher level of
poverty is dominated compared to urban areas. Mostly 75% of the world’s poor
livings in rural areas are dependent on agriculture, and this makes it part of the
world environmental sustainability, poverty reduction, and economic growth
strategies. In order words, agriculture can be seen as the most productive sector in
lowest income countries as it contributes immensely to GDP in terms of the
number of people employed (UNDP 2012). It is of the view that on average,
growth in agriculture reduces poverty more compared to growth outside
agriculture. However, the benefit of agriculture over nonagricultural activities in
reducing poverty is prevalent in the poor society but eventually disappears as the
countries become richer (Christiaensen and Martin 2018). Agricultural productivity
which is said to reduce poverty by releasing labor to nonagricultural sector also
absorbs labor from less productive sector into agriculture (Kerr and Kolavalli
1999). When there is increase in agricultural production, the poor household gain
directly as producers, as cost reduces more than price, consumers gain through
lower prices or as agricultural laborers gain through higher wages and increased
employment. Consequently, increase in agricultural productivity exhibit a larger
poverty-reduction impact in comparison to increase in industry and other services
(Ivanic and Martin 2018). In accordance to this menace, social and economic
7
intervention will be of great importance in limiting poverty (Marniesse and
Peccoud 2003). The inspiration for the pronouncement was from the World
Summit on social development held in Denmark, 1995 where countries pledged
their obligation for global poverty alleviation (Aluko 2003). Currently, the United
Nations Development Programme (UNDP) and the World Bank have been
concentrating on poverty implications in the world and highlighted the gravity of
the ongoing economic situation. In a bid to strengthen the repercussion in
underdeveloped nations, different economic strategies and programs were lined
out. Furthermore, international communities in recent years have delved into
research on poverty in SSA regions with a view of providing lasting solutions to
incidence of poverty; such are verified in “The Social Impact of Adjustment
Operation in 1995 and Taking Action for Poverty Reduction in Sub-Sahara Africa
in 1996.” These programs have saved the society from political and social
turbulence which serve as impediment to development. Christiaensen et al. (2006)
concluded that the critical entry point in effective poverty reduction is improving
agricultural productivity. It was envisaged that agricultural technology and
investments must be reckoned with in designing poverty reduction strategies.
2.3 The Nigerian Agricultural System
A country’s agricultural sector is the backbone for food security and a strategic
developmental objective for a nation to survive and end poverty in future. It
provides food and raw materials for rural and urban industrial sector. Moreover,
insufficient food supply results in increase in price of food and raw materials
which could translate into erratic demand for increase in wages and consequently
poverty (Kolawole and Omobitan 2014). According to African Development Bank
(2005), nearly 90% of Nigeria’s populations are poor while their occupation is
majorly farming. This deduces that increase in agricultural output can go a long
8
way in reducing poverty wherein the sector plays an essential role in the
development of the economy. The transformation from subsistence agriculture to
diversified market economies with high-value crops will increase the share of
agricultural value added and aid poverty eradication. In addition, the marketing of
agricultural produce with high income demand elasticities, will enable the poor to
participate indirectly in growth of urban regions, thereby transmitting benefits of
growth and adjustment cost. The consistent growth in an economy is a clear
indication of the socioeconomic well-being of the people, while a deteriorating
growth rate suggests a fall in the standard of living of the populace which
aggravates into poverty. The debate strengthened by economics statistics and
history in Nigeria is that the fluctuations in price of crude oil and subsequent
decrease in export earnings shifted emphasis from agricultural productivity to
crude oil. Prior to oil discovery in 1956, agricultural export was predominant in the
economy. It generated approximately 64.5% of export earnings and contributed
about 57% to GDP. In addition, agricultural sector absorbed the largest proportion
of labor force, but with the swing to crude oil in the 1970s, agricultural
contribution to GDP dropped to 23.5% and generated about 5.1% export earnings.
Even though increase in economic growth can spur growth through income of the
poor, it could be higher if economic growth is complemented by decrease in
inequality, i.e., a greater share of growth allocated to the poor. In developing and
emerging economies, agriculture is the major means of livelihood while majority
of the poor solely rely on it (World Bank 2008). Consequently, economic growth is
substantial in ending poverty if it influences the poor, either by connecting exiting
activities to growth processes or changing the economic activities in the region.
Consequently, the Agricultural Transformation Agenda (ATA) in 2012 improved
agricultural output by 11% in the middle of 2011 and 2014 which advocated
9
financial aid from commercial banks to agricultural sector. This motivated
financing the sector up to 5% and reduced importation of food bills by
N466billion. It then propelled the Economic Recovery and Growth Plan (ERGP) in
collaboration with the Agricultural Promotion Agency Policy (APP) to accelerate
achieving self-sufficiency and food security in rice, wheat, and tomato paste
production. This plan was targeted to be achieved in promoting agricultural
productivity by the year 2020. The Nigerian agricultural sector has been an
important sector in the economy both in the past and present due to its promptness
in employment opportunities and contributions to growth of the economy.
Presently, agricultural sector has been considered as the fastest growing subsector
in the non-oil sector. It contributed about 4.5% in 2001 and 8.8% in 2005; also
contributed approximately 42% to GDP in 2007 (Umo 2012; NBS 2010).
However, the unexplored capabilities in agriculture will be of great importance in
reducing poverty in Nigeria. In recent time, the marginal contribution of
agriculture to GDP declined significantly due to neglect of the sector. Therefore,
there is an urgent need to optimize the value chain to attain economic growth. In
2016, agricultural sector contributed 24.4% to GDP and 4.8% to export earnings.
This record proves that there still exist great potentials in the sector in terms of
availability of land, beneficial polices, and financial aids. With a huge total of 82
million hectares of land, only 34 million hectares have been used in cultivation,
and the remaining hectares can be tapped into for better performance to promote
poverty reduction and foster sustainable development. Although the abundant
availability of land should thrust agriculture to optimal threshold, available
statistics displays otherwise. The cause can be coined to typical emphasis on
agricultural production rather than competitive and enhancement in agricultural
sector.
10
2.4 Channels through Which Investment in Agriculture Can Aid Poverty
Reduction
It is of the opinion that advanced agricultural technologies induces productivity
growth (Hezell and Haddad 2001; Thirtle et al. 2003). The growth is expected to
be beneficial to the poor directly by increasing agricultural production and creating
employment opportunities. Agricultural technology is one of the most productive
economical investment government can use to alleviate poverty in a particular
country (Alston et al. 1998). With technological advancement, agriculture has
increased food production for the growing population thereby eluding food
shortage or scarcity which can cause hardship on the poor (Plucknett 1991).
Nonetheless, investment in agriculture is most effective in poverty reduction than
investment in nonagricultural sector, especially among the poor (FAO 2017). This
is particularly better in resource-rich and low-income countries like SSA countries
(Christiansen et al. 2010). However, agriculture is a broad sector in which public
investment, public goods such as infrastructure and service, agricultural research
and extension, natural resource managements and property rights are avenue to
improve the economy for sustainable growth and development. The most important
channels through which agriculture can function to reduce poverty is through
income and price. Increase in income of farmers through adequate price of farm
products is of great significance in improving their livelihood. Likewise, food
constitutes a high share of the poor’s consumption expenditure, and therefore
decrease in food prices might complement increase in food production which helps
in reducing poverty (Cervantes-Godoy and Dewbre 2010). The enormous
empirical evidences on poverty reduction via upsurge in agricultural productivity
gives vivid evidence for indirect reduction through food prices and agricultural
employment. Though some factors around the market forces are favorable to the
11
poor, yet, there are evidences (Timmer 1995; Block and Timmer 1994; De Janvry
and Sadoulet 2010) that support the theories that increase in farm income and real
wages together with upsurge in employment and real income of farmers increases
the number of people living in poverty.
Agricultural productivity enhances agricultural output which determines the prices
of food. The price effect as a result of increased output at that point determines the
income effect for the farmer. Consequently, the price effect propels signals to the
producer towards the future output level. Then the labor market shifts the demand
for food wherein the farmer can consume more or vice-versa. Therefore,
equilibrium in which farm income and real wages spurs the multiplier effect is
attained, thus increasing the income of the farmer (or nonagricultural worker) and
eventually decreases poverty.
2.5 Effectiveness of Agricultural Investment in Poverty Reduction
Several agricultural investments contribute to poverty reduction and aid sustainable
growth (IFAD 2016). The following points are considered crucial in meeting the
aforementioned.
i. Farmer’s associations and organizations for better market facilities and
networks.
ii. Access to technological development that support employment and financial
services concentrated in extension to rural areas.
iii. Management and communication skills for prompt dissemination of
information to farmers.
iv. Participatory agricultural research and extension involving local farmers and
farm leaders on new techniques of seed conservation, machineries for farm
processes, pest control, preservations, and marketing strategies

12
 v. Development of market infrastructures in most poor communities such as
electricity supply, good roads, storage facilities and warehouses, rural and
urban connectivity, retail and wholesale markets, irrigation and drainage,
water supply, alternative sources of energy, sanitation facilities, and
telecommunications.
vi. Financial aids and agricultural loans from financial institutions to support
agricultural growth and development.
Recently, government pays more attention to agriculture more than ever before due
to the benefit that can be tapped to enhance economic growth. In Africa, about
80% of agricultural production emanate from small farmers (Nwankpa 2017). In
recent time, agricultural development is a technical nature which increases
agricultural production, while growth in agriculture is also a channel for greater
food supply and low prices of food for the benefit of the poor (Grewel and Ahmed
2011).
2.6 Empirical Evidence
Theoretical statements in developing countries accentuate the role of agriculture
for poverty reduction. Scholars like Nwafor et al. (2011) and Eboh et al. (2012)
postulated that even though growth is essential for poverty reduction, it does not
always lead to poverty eradication. However, SSA countries have witnessed
exceptional economic growth in recent years; this did not translate into poverty
reduction (Pauw and Thurlow 2011).
But Dim and Ezenekwe (2013) and Tersoo (2013) are of the opinion that growth
from the sector where poor people are actively involved (agricultural sector in the
case of developing countries) reduced poverty faster. Growth in agricultural output
can fuel rapid development in nonagricultural sector through direct and indirect
means. Focusing on inter-sectoral linkages, Johnston and Mellor (1961) established
13
the direct contribution of agriculture to economic growth through five inter-
sectoral linkages: (i) food for consumption, (ii) labor for industrial sector, (iii)
market for industrial sector, (iv) foreign exchange from agricultural export, and (v)
domestic savings for further investment. In quantifying the link between poverty
and agriculture, and providing a theoretical framework for enumerating the
importance of various channels: (i) food prices, (ii) labor market, and (iii) farm
income in six different countries; Bresciani and Valdes (2007) concluded that
growth in agriculture is more poverty reducing compared to growth in
nonagricultural sectors.
Omorogiuwa et al. (2014) investigated the impact of other channels of growth on
poverty reduction in addition to overall growth rate of six low-income nations in
Africa. It was found that agricultural growth was more effective compared to
industrial growth because greater percentage of the populace (about 70%) lives in
rural areas. In addition, while the agricultural sector is providing more employment
opportunities, the industrial sector fail in respect to unskilled labors. But Gollin
(2015) argued that structural transformation of agriculture is an important
consequence of agricultural productivity. However, increase in agricultural
productivity provides food and employment and thus releasing a number of rural
populations for employment in rural areas.
In addition, Schneider and Gugerty (2011) found that productivity in agriculture
decreased poverty by increasing farm and farm incomes thereby creating
employment opportunities in Africa.
Timmer (1995) emphasized the indirect contribution of agriculture to economic
growth as improvement in the quality of major factors of production such as labor
and capital. Furthermore, Block and Timmer (1994) highlighted the indirect
contribution of agriculture to growth as food security, increase economic stability,
14
relative efficiency of household decision-making, and governmental learning by
doing.
On the other hand, Andriquez and Stamoulis (2007) acknowledged four channels
through which growth in agriculture can aid poverty alleviation: (i) direct
increment in income and consumption of small farmer, (ii) indirect reduction in
food prices, (iii) indirect increment in income generated by nonfarm economy, and
(iv) indirect increase in wages and employment of unskilled labor. Considering the
direct and indirect effect of nonagricultural and agricultural sector, it was shown
that growth in nonagricultural sector induced 2.85% poverty reduction while
agriculture translated to about 2.24% reduction in poverty (De Janvry and Sadoulet
2010).
Cervantes-Godoy and Dewbre (2010) investigated the importance of agricultural
growth in poverty reduction in 25 selected countries; it was found that agriculture
is significant in lifting people out of poverty. In addition, growth in agriculture
help in extreme poverty reduction and countries are richer as income inequalities
decreased in Vietnam, Indonesia, and China. In South Asian and SSA countries,
agriculture was found to be more productive than other sectors in alleviating
poverty compared to Latin America and the Caribbean where agricultural
productivity was driven by capital and created employment opportunities for
employers (De Janvry and Sadoulet 2010).
Ivanic and Martin (2018) evaluated the global implications of productivity
scenarios. From the samples of developing countries, such as China and India,
where large numbers of poor people are dominant, it was found that poverty
implications of productivity improvement are broader across developing countries.
It was realized that the effect of productivity gains for poverty rates are mostly not
responsive to how developing countries participate in productivity improvements.
15
It was revealed that when a country improves its productivity, poverty declines due
to profit gained by the producer, but when countries advance their productivity,
poverty also decreases at about the same rate. Agriculture is the best alternative for
stimulating growth, enhancing food security and eradicating poverty in SSA
countries (Umo 2012). Nevertheless, due to the prevalence of increasing poverty
and population in SSA countries (World Bank 2015), most people are dependent
on relatives and friends for sustainability to maintain basic needs of life such as
food, clothing, health care, shelter, and safety (Noko 2016).
According to NBS (2010), agriculture contributed about 42% to GDP in 2007; in
other words, agriculture is the firmest growing subsector in non-oil sector by
contributing about 4.5% and 6.8% growth in 2001 and 2005. Activities that
increase factors of production in agriculture will definitely sustain poverty
reduction in developing countries (Nwabu 2016). All the same, in nonindustrial
economy, agriculture plays a substantial role as a key contributor to export
earnings, source of employment, and decent livelihood in the country (Adenugba
and Raji-Mustapha 2013). It is an extensive consent that agriculture is of
importance in economic growth and poverty reduction (Cuong 2010). Out of 1.2
million extremely poor in the world, most depend on agricultural activities like
fishery, forestry, livestock, and other processing activities for survival. Yet,
agriculture is the key to global food security and poverty reduction (Von Braun et
al. 2008). In the case of Nigeria, agriculture is the most important sector that deals
with poor people majorly resident in rural areas.
Agriculture has been realized as key driver of growth with high potential for
poverty reduction. Consequently, in comparison with oil sector over the last three
decades, agriculture is still and will remain the most important sector in the
economy (Udofia and Essang 2015). Agricultural input to GDP is the largest
16
contribution to non-oil foreign exchange earning which has not been stable over
years. It also absorbs close to 65% from the labor force. Ogen (2003) resolved that
Nigerian economy can be described as an agricultural economy and referred to as
engine of economic growth. Thus, out of the total labor force, agriculture employ
about two-third and serve as source of livelihood for about 90% of the population
(IFAD 2010). This is why agriculture is referred to as “poverty base” since it is the
sector that best touch the poor.
Using a multiple regression analysis, Ijaiya et al. (2011) examined the effect of
economic growth on poverty coupled with a difference-in-difference estimator that
defines poverty reduction as a function of changes in economic growth. It was
revealed that an initial variation in economic growth has no effect on poverty.
Likewise, growth was positively related to poverty reduction in the long run. It was
proposed from the study that investment in agriculture, good governance, steady
macroeconomic policies, and infrastructural development are the essential element
for poverty reduction. Oni (2014) similarly investigated the impact of agriculture
on poverty reduction. It was revealed that social infrastructure per capita, physical
infrastructure per capita and per capita agricultural GDP impacted positively on
poverty in Nigeria.
Nwankpa (2017) investigated the transformation of poverty eradication as a means
of supporting economic growth in Nigeria. The result revealed that agricultural
sector is the major contributor to growth in the economy. On one hand, Udofia and
Essang (2015) clarified that the poor performance of agricultural sector was
responsible for negative impact of agriculture in poverty reduction in Nigeria,
while Kolawole and Omobitan (2014) revealed that food production index and
government spending exhibited a negative effect on poverty reduction in Nigeria.
Using Vector Error Correction and Principal Component Analysis, Messiah and
17
Dankawu (2018) investigated the relative effectiveness of crop production,
forestry, fishery, and livestock on poverty reduction in Nigeria. The result revealed
that shocks to forestry, crop production, livestock, fishery, and agricultural
activities exhibited a lasting effect on poverty reduction in future. Furthermore, in
a review of the role agriculture plays in poverty reduction in Nigeria, Jamal et al.
(2018) assessed the importance of agriculture to poverty alleviation. It was
discovered that 70% and above Nigerians were poor in 2001 while 60% and above
in 2010. In addition, agricultural sector employed 60% of the citizens.
Furthermore, it was found that jobs were created and income were generated which
aided poverty reduction. The study recommended agricultural productivity,
marketing activities, and capital expenditure to control poverty.

18
3.0 CONCLUSION
3.1 Conclusion
The end of the MDGs in poverty eradication has given a new insight into the role
of agriculture in economic growth and poverty reduction. Therefore, in order to
achieve the SDGs of ending extreme poverty by 2030, more practical strategies
should be laid out to increase the income of the poor. Moreover, government
should seek for beneficial techniques to foster income growth. Additionally,
implementation of trade, agricultural and development co-operation policies to
stimulate agriculture’s contribution to poverty eradication. It is obvious and clear
that growth in agricultural income is important in stimulating the growth of overall
economy and thereby ends global poverty. This is because agriculture is one of the
most productive sectors in low-income countries in terms of its share in overall
GDP, which can intensify the well-being of the people in long run. The enormous
size of agriculture in most African countries proposes strategic plans to promote
agriculture at every stage of economic growth. The importance of agriculture
cannot be overemphasized as it advocates the tactics considered in promoting early
stages of economic growth. The Nigerian agricultural sector possesses vast
potential in absorbing the unemployed if value addition can be inculcated to
enhance its optimal level. The comparative advantage of geographical abundance
should be applied in the production of products whose raw material are readily
available like cocoa and nuts which can aid the exportation of finished goods (e.g.,
chocolate) to the Asian and European markets. Also comparative advantage exists
in palm oil, cassava, rice, tomato, cotton, and livestock production which can boost
foreign exchange, enhance term of trade, and provide employment to reduce
poverty. Hence, policies that will enhance productivity in agriculture as a tool for
poverty reduction should be targeted by the Nigerian government and individual
19
private sectors in order to provide promising opportunities for poor people to
eradicate poverty.

20
 REFERENCES
Aderonmu JA (2010) Local government and poverty eradication in rural Nigeria.
Can Soc Sci 6(5):200–208 African Development Bank (2005) Agriculture
and Rural Institutions Support Project Appraisal Report. Agriculture and
Rural Development Department Central and West Region, OCAR, April
2005
Aku PS, Ibrahim MJ, Bulus YD (1997) Perspective on poverty alleviation
strategies in Nigeria. In: Proceedings of the Nigeria Economic Society
annual conference on poverty alleviation in Nigeria, NES, Ibadan, pp 41–54
Alston J, Pardey P, Roseboom J (1998) Financing agricultural research:
international investment patterns and policy perspectives. World Dev
26(6):1057–1071 Aluko MO (2003) Strategies for poverty reduction in
Nigeria. Obafemi Awolowo University, Ile-Ife
Andriquez G, Stamoulis K (2007) Rural development and poverty reduction: is
agriculture still the key? Electron J Agric Dev Econ 4(1):5–46
Bello RA, Toyebe GOA, Balogun IO, Akanbi SB (2009) Poverty alleviation
programmes and economic development in Nigeria: a comparative
assessment of Aba and Ilorin West Local Government Area of Kwara State,
Nigeria. Int Multi-Discip J Ethiopia 3:283–297
Block S, Timmer CP (1994) Agriculture and economic growth: conceptual issues
and the Kenyan experience. HIID development discussion paper no. 498.
Harvard Institute for International Development, USA
Bresciani F, Valdés A (2007) Beyond food production: the role of agriculture in
poverty reduction. FAO, Rome Central Bank of Nigeria (1999) Nigeria’s
development prospect’s: poverty assessment and alleviation study. Research
Department, Abuja
Cervantes-Godoy D, Dewbre J (2010) Economic importance of agriculture for
poverty reduction. OECD Food, Agriculture and Fisheries working papers,
no. 23, OECD Publishing
Christiaensen L, Demery L, Küh J (2006) The Role of Agriculture in Poverty
Reduction: An Empirical Perspective. Policy Research Working Paper; No.
4013. World Bank, Washington, DC. © World Bank
Christiaensen L, Martin W (2018) Agriculture, structural transformation and
poverty reduction: eight new insights. World Dev 109:413–416
21
Christiansen L, Demery L, Kuhl J (2010) The (evolving) role of agriculture in
poverty reduction: an empirical perspective. World Institute for
Development Economics Research (WIDER) Working Paper. No. 2010/36,
ISBN 978-92-9230-273-3. The United Nations University World Institute
for Development Economics Research (UNU-WIDER), Helsinki Corral S,
Cuong VN (2010) Does agriculture help poverty and inequality reduction?
Evidence from Vietnam. Agric Econ Rev 11(1):44–56
De Janvry A, Sadoulet E (2010) Agricultural growth and poverty reduction:
additional evidence. World Bank Res Obs 25(1):1–20 Desai M (1992)
Population and poverty in Africa. African Development Review 4(2):63–78
Díaz AS, Monagas MC, García EC (2017) Agricultural policies and their impact
on poverty reduction in developing countries: lessons learned from three
Water Basins in Cape Verde. Sustainability MDPI, pp 1–18
Dim C, Ezenekwe U (2013) Does agriculture matter for economic development?
Empirical evidence from Nigeria. J Financ Econ 1(1):61–77
Eboh E, Oduh M, Ujah O (2012) Drivers and sustainability of agricultural growth
in Nigeria. African Institute for Applied Economics Research Paper 8,
Enugu
FAO (2012) The state of food insecurity in the world. Economic growth is
necessary but not sufficient to accelerate reduction of hunger and
malnutrition. FAO, Rome
FAO (2017) Sustainable development goals: ending poverty and hunger by
investing in agriculture and rural areas. Rome
Fasoranti MM (2010) The influence of micro-credit on poverty alleviation among
rural dwellers: a case study of Akoko North West Local Government Area
of Ondo State. Afr J Bus Manag 4(8):1438–1446
Gangas S (2017) Relationship between Economic Growth and Poverty Reduction
in Nigeria. Journal of Business and Finance Management Research 3(2):34–
56
Gollin D (2015) Agriculture as an engine of growth and poverty reduction: lessons
for Africa: chapter 4. In: McKay A, Thorbecke E (eds) Economic growth
and poverty reduction in Sub-Saharan Africa: current and emerging issue.
Oxford University Press, Oxford; see also AERC Plenary Paper (2009),
Nairobi
22
Grewel B, Ahmed A (2011) Agriculture and Poverty Reduction: Literature Review
and Outstanding Issues. International Workshop on the Role of Agriculture
in Poverty Reduction, Centre for Strategic Economic Studies, Victoria
University, Melbourne
Hezell P, Haddad L (2001) Agricultural research and poverty reduction, food,
agriculture and the environment. Discussion paper 34, IPFRI/Technical
Advisory Committee of the CGIAR, Washington, DC
IFAD (2016) Rural development report 2016. International Fund for Agriculture
and Development, Rome
Ijaiya GT, Ijaiya MA, Bello RA, Ajayi MA (2011) Economic growth and poverty
reduction in Nigeria. Int J Bus Soc Sci 2(15):147–154
International Fund for Agricultural Development (IFAD) (2010) Rural Poverty in
Nigeria. Rural Poverty Portal. Retrieved from
http://www.ruralpovertyportal.org/ country/home/tags/Nigeria/pdf.
Ivanic M, Martin W (2018) Sectoral productivity growth and poverty reduction:
national and global impacts. World Dev 109:429–439
Jamal AA, Sani SA, Muhammad SI, Abdulwahab K (2018) Agriculture and
poverty reduction in Nigeria; a review. J Humanit Soc Sci 23(2):61–68
Jelilov G, Musa M (2016) The Impact of Government Expenditure on Economic
Growth in Nigeria. Sacha Journal of Policy and Strategic Studies. 5(1):15–
23
Johnston B, Mellor J (1961) The role of agricultural in economic development. Am
Econ Rev 4:566–593
Kerr, J. and Kolavalli, S (1999). Impact of agricultural research on poverty
alleviation: a conceptual framework with illustration from the literature.
Environment and Production Technology Division discussion paper no. 56.
IFPRI, Washington, DC
Kolawole BO, Omobitan OA (2014) Raging poverty and agricultural output in
Nigeria: an empirical investigation. J Econ Sustain Dev 5(6):63–72
Marniesse S, Peccoud R (2003) Introduction. Poverty, inequality and growth:
what’s at stake for development aid? Poverty, inequality and growth.
Proceedings of the AFD EUDN conference, Paris, France

23
Messiah AJ, Dankawu MU (2018) Effect of agriculture on poverty reduction in
Nigeria: a multifaceted approach using principal component analysis. J
Humanit Soc Sci 23(6):35–43
National Bureau of Statistics (2010) Nigeria poverty Profile Report. Abuja
Noko EJ (2016) Economic recession in Nigeria: causes and solution. Published by
educLn.com2016. http:// educacinfo.com/economic-recession-Nigeria/
Nwabu G (2016) Agricultural productivity and poverty reduction in Nigeria.
School of Economics, University of Nairobi
Nwafor M, Ehor EC, Chukwu OJ, Amuka JI (2011) Costeffective agriculture
growth options for poverty reduction in Nigeria: evidence and policy
implications. Paper 6, Enugu
Nwankpa NN (2017) Sustainable agricultural development in Nigeria: a way out of
hunger and poverty. Eur J Sustain Dev 6(4):175–184
Odusola AF (2001) Conceptual issues on poverty and poverty measurement.
National Centre for Economic Management and Administration (NCEMA).
Workshop on poverty alleviation policies and strategies. Ibadan. Nigeria
Ogbalubi LN, Wokocha CC (2013) Agricultural development and employment
generation: the Nigerian experience. J Agric Vet Sci 2(2):60–69
Ogen O (2003) Patterns of economic growth and development in Nigeria since. In:
Arifalo SO, Ajayi G (eds) Essays in Nigerian contemporary history. First
Academic Publishers, Lagos, p 1960
Ogen O (2007) The Agricultural Sector and Nigeria’s Development: Comparative
Perspective from the Brazilian Agro-Industrial Sector Economy (1960–
1995). Nebula March 2007@Noble World Archives
Oladunni EB I (2001) The millennium development goals (MDGs): Prospects of
attainment and challenges for Nigeria. CBN Bullion Oct-Dec 2004. Central
Bank of Nigeria 23(4):32–36.
Olajide OT, Akinlabi BH, Tijani AA (2012) Agriculture resource and economic
growth in Nigeria. Eur Sci J 8(22):103–115
Omorogiuwa O, Zivkovic J, Ademoh F (2014) The role of agriculture in the
economic development of Nigeria. Eur Sci J 10(4):133–147 Oni LB (2014)
An assessment of agriculture and poverty reduction Nexus in Nigeria. J Afr
Macroecon Rev 4(1):265–282

24
Pauw K, Thurlow J (2011) The role of agricultural growth in reducing poverty and
hunger. The case of Tanzania. Leveraging agriculture for improving
nutrition and health 2020 conference brief 21. IFPRI, Washington, DC
Plucknett D (1991) Saving lives through agricultural research. Issues in
Agriculture. CGIAR, Washington, DC
Ravallion M, Bidani B (1994) How Robust is a Poverty Profile? World Bank
Economic Review 8(1):75–120
References Adenugba AO, Raji-Mustapha NO (2013) The role of women in
promoting agricultural productivity and developing skills for improved
quality of life in rural areas. J Eng 3(5):51–58
Schneider K, Gugerty MK (2011) Agricultural productivity and poverty reduction:
linkages and pathways. Evans School Rev 1(1):56–74
Schultz T (1979) The economics of being poor. J Polit Econ 88(4):639–651
Tersoo P (2013) Agribusiness as a veritable tool for rural development in Nigeria.
Mediterr J Soc Sci 4(12):21–29
Thirtle C, Lin L, Piesse J (2003) Impact of research-led agricultural productivity
growth on poverty reduction in Africa, Asia and Latin America. World Dev
31(12):1959–1975
Timmer CP (1995) Getting agriculture moving: Do markets provide the right
signals? Food Policy 20(5):455–472
Udofia L, Essang N (2015) Agricultural expenditure and poverty alleviation in
Nigeria. Eur J Bus Manag 7(21):29–44 UNDP (United Nations
Development Programme) (2012) Africa Human Development Report 2012.
Towards a Food Secure Future. New York.
Umo J (2012) Escaping poverty in Nigeria: a perspective on strategic agenda for
Nigeria. Millennium Text Publishers Limited, Uyo
Von Braun J, Fan S, Meinzen-Dick R, Rosegrant MW, Pratt NA (2008)
International agricultural research for food security, poverty reduction, and
the environment. What to expect from scaling up CGIAR investments and
“Best Bet” programs. IFPRI, Washington, DC
World Bank (2000) World Bank development report. Oxford University Press,
New York World Bank (2008) World development report 2008: agriculture
for development.

25