Contributions Of Agriculture To Economic

The agricultural sector of the Nigerian economy has made important contributions to economic development. Some of its vital contributions are stated below:

• Major Source of Food Supply

The agricultural sector has been the major supplier of foodstuffs to the populace. In the I 950s and I 960s, Nigeria was self sufficient iii provision of foodstuffs, but in recent times, this is not the case. All the more reason why the government has been laying agricultural production through its various programmes like ‘Operation Feed the ‘Green Revolution’, and ‘Agricultural Development Programmes’ established in all states.

• Major Foreign Exchange Earner and Conservator

It earns the country foreign exchange from its export of agricultural products like cocoa rubber, groundnut, palm kernel, etc. Likewise, it conserves foreign exchange since we not use our hard earned foreign exchange to purchase some goods from abroad and otheT! foodstuffs that it produces too (like yam and cassava tuber, maize, guinea corn, wheat millet, etc.).

• Source of Savings and Capital Accumulation

Agricultural sector in Nigeria and West Africa at large provides savings and investible surplus fund for capital accumulation from its large revenue earnings. In recent timej. individual farmers have been able to accumulate enough money to purchase modern farn machineries and equipments.

• Major Source of Raw Materials for Industries

The agricultural sector produces over 70% of raw materials of food processing industriousness Nigeria. For instance, it provides palm kernels for manufacturers of palm oil and groundnut oil, likewise it produces cocoa for local manufacturers of cocoa butter and beverages. produces tobacco leaves for cigarette products producers.

• Major Market for Agricultural Tools/Machinery

Agricultural sector is a market for agricultural tools, machinery and other farming input produced by the industrial sector. The agricultural sector consumes the various tractor and other agricultural tools and machines produced in the industries. Likewise, it buys the various chemicals like herbicides, fumigants, pesticides and fertilizers produced by industrial sector.

• financier of Industrial Growth and Development

finances industrial growth and development by patronizing its products and services; and at ie same time by re-directing its investible surplus into industrial ventures. Individual rmers and corporate farming bodies re-invest in industries. For example, Amoo-Sanders Hatchery Limited now invest in production of feed mills.

• Providers of Employment Opportunities

provides employment for more than 60% of the Nigerian labour force. as well transfers excess manpower to non-agricultural sector as a result of the use of nadern agricultural machinery.


Agriculture can be categorized into three basic categories:

(I) Crop production;
(ii) Livestock production; and
(lii) Mixed farming.
Systems of agriculture include the following:
(I) Self subsistence/peasant agricultural system;
(ii) Plantation farming;
(iii) Mechanised farming;
(iv) Commercial farming;
(v) State farming;
(vi) School farming; and
(vii) Cooperative farming.
Contribution of agriculture to economic development includes:
(i) major source of food supply;
(ii) major foreign exchange earner and conservation;
(iii) source of savings and capital accumulation;
(iv) major source of raw materials for industries;
(v) major market for agricultural tools/machineries;
(vi) financier of industrial growth and development
(vii) provider of employment opportunities;
(viii) it increases rural net income;
(ix) tourist attraction;
(x) provides means of transport.