Agricultural Sector As Means Of Diversifying Nigeria Economy Agricultural Sector As Means Of Diversifying Nigeria Economy

Abstract

Considering the present and continuous nose diving in price of crude and its effect on the economy of Nigeria, this paper seek to reiterate the importance of diversification of  the economy to agricultural sector as the best and the most suitable option to rescue Nigeria’s dwindling economy. Taking advantage of ordinary least square method (OLS), the research was carried out by means of secondary data between the years of 1985 to 2015, evaluating the impact of agricultural sector on GDP and human capital development. The research work was backed up Rostow economic growth model and Pareto optimality, also the analysis was tested using Durbin-Watson statistics. From the findings, it was discovered that Agricultural Productivity and development has significant impact on the Gross Domestic Product and insignificant impact on Human capital development due to neglect of agriculture to rural populace and ageing population. Based on the findings, the following recommendations are proposed: technological advancement in agricultural production, financial and budgetary diffusion to the sector, charging of zero or Non-interest rate on loans, proper finance monitoring, establishment of import substitution and export promotion industries, re-orientation of young minds towards investing in agriculture and motivating agricultural entrepreneurs who are willing to venture into the sector.