THE LONG-RUN IMPACT OF WORLD OIL PRICES ON AGRICULTURAL PRODUCTIVITY IN SELECTED STAPLE CROPS IN NIGERIA: 1980-2014

Abstract

Abstract This study analyzed the long-run impact of world oil prices on agricultural productivity in selected staple crops in Nigeria. The analysis was based on the input and output quantities of the crop sub-sector, which is the dominant sub-sector of agriculture of Nigeria. Secondary data which were sourced from secondary sources such as the Organization of Petroleum Exporting Countries (OPEC), National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN) annual statistical bulletin were used for the study. Descriptive statistics and inferential statistics were used to analyse data collected. The result of the study showed that world oil price had a negative long-run effect on agricultural productivity at 5% level of significance. Furthermore, world oil price has a negative long-run effect on individual crop productivities at 5% level of significance. Hike in oil price no doubt results to hike in agricultural production resources which make production resources inaccessible to the resource-poor farmers. The consequence is a decline in agricultural productivity. Hence it is necessary that provision should be made by government and other stake holders to cushion the effect of hike in price of production resources to farmers so that agricultural production can continue unhindered.

Keywords

• impact, long-run, agricultural productivity, staple crops and world oil prices