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VYTAUTAS MAGNUS UNIVERSITY
BIOECONOMY DEVELOPMENT FACULTY
Institute of Business and Rural Development Research
Samuel Mudiaga Egbegbadia
POSSIBILITIES FOR THE SUSTAINABLE GROWTH OF
AGRIBUSINESS IN NIGERIA: EKITI STATE CASE ANALYSIS
Master‘s Thesis
Agri-food Business Manangement study programme, state code 6281LX006
Management study field
Supervisor Prof. Dr. Rimantas Dapkus __________ ___________
(Signature) (Date)
Defended Prof. Dr. Jan Žukovskis _____________ __________
(Director of Institute) (Signature) (Date)
Akademija, 2021
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Final theses evaluation committee:
(Approved by the Chancellor's Ordinance No. ŽŪA-2021-…, …28th ….May, 2021)
Chair Assist. Prof. Dr. Anne Poder, Estonia University of Life Science
Members:
1. Raul Omel, Estonia University of Life Science
2. Prof. Dr. Ulle Parl, Tartu University
3. Henrik Gunnar Soren Arvidasson ,Entrepreneur
4. Prof. Dr. Gunta Grinberga Zalite , Latvia university of Life science
5. Prof. Dr. Rimantas Dapkus, Vytautas Magnus University
Supervisor Prof. Dr. Rimantas Dapkus, Vytautas Magnus University
Reviewer ………………....
Head of the Institute Prof. Dr. Jan Žukovskis, Vytautas Magnus University
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SUMMARY
Samuel Mudiaga EGBEGBADIA
POSSIBILITIES FOR THE SUSTAINABLE GROWTH OF AGRIBUSINESS IN
NIGERIA: EKITI STATE CASE ANALYSIS
Final work of Master’s Studies 83 pages, 52 references, 9 figures, 20 tables; in English.
Object of Research: Possibilities for sustainable growth of Agribusiness in Nigeria: Ekiti state
case analysis
Overall goal of the Research: To suggest strategies and solutions for the Agriculture business
sustainable development in Nigeria (employing Ekiti state case analysis).
This is believed to further enhance the study to achieve the following objectives:
1. To review relevant scientific materials in Agribusiness and their performance in Nigeria
2. To identify the challenges of Agribusiness in the Ekiti state and Nigeria at large and to evaluate
the potentiality of Agriculture in generating employment in Ekiti state, thus reducing
unemployment rate in Nigeria and also to generate adequate food supply in Nigeria.
3. To carry out a survey to identify measures to improve the performance of Agribusiness in Ekiti
state and Nigeria at large.
4. To prepare suggestion for Ekiti state administration and for potential industries and companies
in order to promote investments and agri-business development.
Research Method: The research involves the theoretical analysis of Agribusiness in Ekiti state
using secondary sources and primary data sources for deduction and induction. A cases study
analysis is done using graphic and statistics representation. The research method adopted both
quantitative and qualitative research approach which is to acquire detailed information based on
knowledge and experiences of participants.
Research Result: The theoretical aspects such as the concept of the object of study. The
performance of Agribusiness in Nigeria, Factors affecting the Agribusiness in Nigeria. The second
section contains the methodological approach for the empirical study, ethical consideration and the
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limitations of study etc. While the third part contains the presentation of the empirical research
based on the research outcome and PEST, SWOT analysis; the last part focuses on the strategies
for improving the state of agriculture and agribusiness in Nigeria which suggest that in conjunction
with private company, the government have a huge role to play in improving the agribusiness in
Nigeria. The summary, conclusion research was presented based on final outcome of the thesis.
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SANTRAUKA
Samuel Mudiaga EGBEGBADIA
ŽEMĖS ŪKIO AUGIMO NIGERIJOJE GALIMYBĖS: EKITI VALSTIJOS ATVEJO ANALIZĖ
Magistro studijų baigiamasis darbas 83 puslapiai, 52 šaltiniai, 9 paveikslai, 20 lentelių; angliškai.
Tyrimo objektas: Darnaus žemės ūkio verslo augimo Nigerijoje galimybės: Ekiti valstijos atvejo
analizė
Tyrimo tikslas: Pasiūlyti tvaraus žemės ūkio verslo vystymo strategijas ir sprendimus Nigerijoje
(naudojant Ekiti valstijos atvejo analizę).
Siekiant tyrimo tikslo bus sprendžiami šie uždaviniai:
1. Apžvelgti aktualią agroverslo mokslinę literatūrą ir agroverslo rezultatus Nigerijoje;
2. Nustatyti agroverslo iššūkius Ekičio valstijoje ir apskritai Nigerijoje bei įvertinti žemės ūkio
potencialą ir užimtumo Ekičio valstijoje didinimo galimybes, siekiant Nigerijoje sumažinti nedarbo
lygį ir užtikrinti pakankamą visuomenės aprūpinimą maistu.
3. Atlikti tyrimą, siekiant nustatyti priemones, skirtas pagerinti žemės ūkio verslą Ekiti valstijoje ir
apskritai Nigerijoje.
4. Parengti rekomendacijas Ekiti valstijos administracijai, potencialioms pramonės šakoms ir
įmonėms, siekiant skatinti investicijas ir žemės ūkio verslo plėtrą.
Tyrimo metodai: tyrimas apima žemės ūkio verslo Ekiti valstijoje teorinę analizę naudojant dedukciją
ir indukciją, analizuojant antrinius duomenų šaltinius ir renkant bei analizuojant pirminius duomenis.
Atvejų analizė atliekama naudojant grafinį ir statistinį vaizdavimą. Pritaikyti tiek kiekybinį, tiek ir
kokybinį tyrimo metodus, siekiant gauti išsamią informaciją, pagrįstą dalyvių žiniomis ir patirtimi.
Tyrimo rezultatas: Pirmame skyriuje aptariami teoriniai aspektai. Žemės ūkio verslo Nigerijoje
situacijos analizė ir žemės ūkio verslą Nigerijoje veikiančių veiksnių identifikavimas. Antrame
skyriuje pateikiamas empirinio tyrimo metodinis požiūris, etinis svarstymas ir tyrimo apribojimai.
Trečiojoje dalyje pateikiamas empirinio tyrimo, PEST, SSGG analizių pristatymas. Paskutinėje
dalyje pagrindinis dėmesys skiriamas Nigerijos žemės ūkio ir agroverslo būklės gerinimo
strategijoms, kurios rodo, kad vyriausybė kartu su privačiu verslu turi atlikti didžiulį vaidmenį
gerinant žemės ūkio verslą Nigerijoje. Santrauka, išvadų tyrimas buvo pateiktas remiantis galutiniu
darbo rezultatu.
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Contents
SUMMARY ....................................................................................................................................................... 3
SANTRAUKA ................................................................................................................................................... 5
List of Figures .................................................................................................................................................... 7
List of Tables ...................................................................................................................................................... 8
GLOSARY OF KEY CONCEPTS .................................................................................................................. 10
INTRODUCTION ............................................................................................................................................ 11
1. THEORETCICAL CONCEPTUALIZATION OF SUSTAINABLE GROWTH OF AGRIBUSINESS
MARKETING AND DISTRIBUTION IN EKITI STATE ............................................................................. 16
1.1 The Dual Sector Theory ................................................................................................................... 16
1.2. Schultz Traditional Agriculture Theory ........................................................................................... 18
1.3. Agriculture and Nigerian Economy ................................................................................................. 20
1.4. Concept of Agribusiness .................................................................................................................. 23
1.5. Importance of Agribusiness Development in Nigeria towards Sustainable growth ......................... 27
2. ANALYSIS OF THE CASE STUDY OF AGRIBUSINESS IN EKITI STATE .................................... 35
2.1 METHODOLOGY OF CASE STUDY OF AGRIBUSINESS IN EKITI STATE.......................... 35
2.2. Analysis of Research performance of cocoa supply chain using in Ondo state ............................... 39
2.3. Quantitative analysis of respondents from Farmers in Ekiti state .................................................... 40
2.4. Qualitative Research Analysis of respondents who are farmers ...................................................... 61
3. PEST AND SWOT ANALYSIS OF PERFORMANCE OF AGRICULTURE IN EKITI STATE ........ 66
3.1. PEST analysis for the promotion of Agribusiness in Ekiti State ...................................................... 66
3.2. SWOT analysis of initiatives towards improvement of Agriculture towards sustainable
agribusiness in Ekiti state. ............................................................................................................................ 69
4. POSSIBILITIES FOR THE SUSTAINABLE GROWTH OF AGRIBUSINESS IN EKITI STATE ..... 74
Conclusion........................................................................................................................................................ 78
References ........................................................................................................................................................ 80
ANNEXES ....................................................................................................................................................... 84
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List of Figures
FIGURE 1: THE TREND OF AGRICULTURAL OUTPUT BETWEEN 1980-2003 (SOURCE:
AUTHOR, 2021)
FIGURE 2: ANALYSIS OF GENDER OF RESPONDENTS (SOURCE: AUTHOR, 2021)
FIGURE 3: ANALYSIS OF AGE OF RESPONDENTS (SOURCE: AUTHOR, 2021)
FIGURE 4: ANALYSIS OF YEARS OF EXPERIENCE OF RESPONDENTS (SOURCE:
AUTHOR, 2021)
FIGURE 5: ANALYSIS OF THE CATEGORY OF FARM SCALE (SOURCE: AUTHOR,
2021)
FIGURE 6: ANALYSIS OF THE TYPE OF CROPS FARMED (SOURCE: AUTHOR, 2021)
FIGURE 7: ANALYSIS ON THE AVAILABILITY OF LABOUR (SOURCE: AUTHOR,
2021)
FIGURE 8: ANALYSIS OF AGE RANGE OF INDIVIDUALS READY TO WORK AS LABOR
(SOURCE: AUTHOR, 2021)
FIGURE 9: ANALYSIS OF FARMERS THAT BELONG TO FARMERS’ ASSOCIATION
(SOURCE: AUTHOR, 2021)
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List of Tables
TABLE 1: BUDGETARY ALLOCATION TO AGRICULTURE IN NIGERIA BETWEEN
1990-2002
TABLE 2: AGRICULTURAL RESEARCH INSTITUTES IN NIGERIA
TABLE 3: SELECTED LOCAL GOVERNMENT AREAS IN EKITI STATE
TABLE 4: ANALYSIS OF THE RATE OF PERFORMANCE OF FARMING IN TERMS
OF BUSINESS SUCCESS.
TABLE 5: ANALYSIS OF THE RESPONDENTS EDUCATIONAL QUALIFICATION
TABLE 6: ANALYSIS ON THE DESCRIPTION OF MARKET FOR FARM PRODUCE
TABLE 7: ANALYSIS OF THE EFFECTIVENESS OF THE COLLABORATION BETWEEN
GOVERNMENT AND THE FARMERS
TABLE 8: ANALYSIS OF AVAILABILITY OF INFRASTRUCTURE
TABLE 9: ANALYSIS OF AVAILABILITY OF MODERN EQUIPMENT FOR EASY
FARMING
TABLE 10: ANALYSIS OF ACCESS TO LOAN
TABLE 11: ASSISTANCE FROM PRIVATE ORGANIZATIONS
TABLE 12: ANALYSIS OF THE INVESTMENT IN INFRASTRUCTURAL SUPPORTS
FACILITIES IN YOUR COMMUNITY SUCH AS ROADS, IRRIGATION ETC
TABLE 13: ANALYSIS ON THE EASE OF FARMING BUSINESS ENVIRONMENT IN
TERMS ACCESS TO LAND, IMPROVED SEEDLINGS, FERTILIZERS ETC
TABLE 14: ANALYSIS ON RESEARCH INITIATIVES TO IMPROVE THE FARMING
THROUGH DEVELOPMENT OF RESISTANT SEEDING TO DISEASE/ PEST AND
REPLANTING IN THE STATE (EG. THE COCOA RESEARCH INSTITUTE OF
NIGERIA –CRIN)
TABLE 15: SUPPORTS FOR FARMER’S INCENTIVES AND FARM EXTENSION
WORKERS
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TABLE 16: ANALYSIS OF THE FORM OF INCENTIVE DOES FARMERS/ FARM
EXTENSION WORKERS ENJOY
TABLE 17: POLICIES ON PRICE CONTROL AND INFORMATION DISSEMINATION TO
FARMERS BENEFICIAL TO FARMERS
TABLE 18: DEVELOPMENT OF EFFORTS AT COLLABORATIVE PLANNING FOR
IMPROVEMENT OF VARIETY METHODS OF FARMING IN THE STATE FOR
BETTER OUTPUT (STATE AND FARMER’S ASSOCIATION)
TABLE 19: ANALYSIS OF INTERVIEW
TABLE 20: SWOT ANALYSIS
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GLOSARY OF KEY CONCEPTS
Sustainable Growth: The concept “Sustainable growth” refers to the ability of an individual
or an entity to meet up with its own need without the need to
compromise the ability of future generations to meet their own needs.
Agribusiness: The term “agribusiness” as defined by Downey & Erickson (1987) refers to all
the business and management activities that are carried out by firms that
provide inputs performed by firms that provide inputs to the farm sector,
produce farm products, and/or process, transport, finance, handle or market
farm products.
AFA: All Farmers Association
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INTRODUCTION
Prior to the discovery of crude oil in Nigeria, Agriculture was the major source of economy
through which many capital projects were executed; projects such as building of schools, creating
good roads, and the most popular of them is the prominent cocoa house in Ibadan, Oyo state of
Nigeria. The 23-story building built with the proceeds generated from the cultivation of cocoa stays
perhaps the most noticeable accomplishments of the early leaders in the South-Western part of
Nigeria (Wahab 2020). This ascertain that there was a time when the political leaders held Agriculture
with high esteem and the 23-storey building in Ibadan today is a vivid example of what proceeds from
cocoa was used for. According to Egwaikhide (2014) During the 1940s to 1950s, more than 75% of
Nigeria yearly product trade items were from the agriculture sector. The Nigeria economy was
dominated by the agricultural sector and foreign trade of agricultural products has greatly improved
the economy (Kevin Akpososo Ufiobor, 2017).
Recently, the power of Agriculture has been underrated, which has led to the reduction of
funds allocated to the Agricultural sector. A portion of the reasons distinguished by past authors
include the over-dependence on oil as the Nigerian source of foreign exchange, small farm holdings,
low yield, inconsistent production pattern, disease incidence, pest attack as well as climate change
(Oluyole and Sanusi, 2019). Hence, the discovery of crude oil in Nigeria spurred the Nigerian
government to underrate the potentials of Agriculture and shift their attentions to the crude oil
exploration while neglecting Agricultural capabilities of procuring solutions to the poverty rate in
Nigeria.
The Nigerian Agricultural sector which is divided into crop production, Forestry, Livestock,
and Fishing generated more income from the exportation of rubber, palm oil, coffee, groundnut, palm
kernel and cocoa, which played important roles in developing the country around this period, part of
what we still see today in the country. Afolayan (2017) affirms that Nigeria was situated as the major
producer of cocoa in the West Africa region while cocoa was situated as the fundamental source of
new exchange laborer for the country during this period. However, Nigeria shifted her attention from
the Agribusiness to the newly discovered crude oil in 1970, a sector which was regarded as a moderate
contributor to the economy now becomes very important. A report from CBN (2011) indicates that
Nigeria is over dependent on the oil sector, it provides 95% of the foreign exchange earnings and
65% of the national budget revenues. Hence, Nigeria has monopolize with focus on the exploration
of crude oil in Nigeria which has led to the decline of other sectors that possesses the potential of
bringing stable income into the country’s economy. Sectors like Education, Health, Aviation,
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Tourism, Agriculture, etc. have been neglected while the country monopolizes the oil sector as the
country’s sole source of income.
The country is well endowed with cultivable land, forests, very good climatic and weather
condition, livestock, bountiful mineral resources e.g. tin, copper, crude oil and natural gas. The
country has great potentials to compete with the most industrialized nations of the west when it comes
to economy which has been negatively affected as a result of the fall in oil price has shown clearly
the negligence of the government over the years in developing other sectors of the economy (Odupitan
2017, p. 3)
This has led to the unemployment and poverty at the increase end. Graduates who could have
function effectively at these neglected sectors have nowhere to experiment their expertise as a result
of the government’s lackadaisical attitude about these sectors. These and many other factors
instigated this research work because Nigeria government has failed to recognize and harness the
potential of the Agricultural and Agribusiness to boost the socio-economic dimension of the country.
While relying on the crude oil, the Nigerian government, unlike other developed countries
have failed to diversify the economy of the country by not recognizing the potentiality of the
Agribusiness and other lucrative sectors in providing employment, generating sustainable economic
programmes, home feeding, establishment of industries who are in search of these raw materials to
be processed and reproduced to finished products. This monopolization has led to series of debate
among scholars finding solution to this downslope in Nigeria’s economy. The results of series of
research have proclaimed that recognizing the potentials in other sectors and investing in them is the
only solution to this problem. In any case, an open door is available and accessible for these areas to
be exploited in the most ideal manner; this clears the route for the economy to be on the way of
diversification, sustainable economic growth as well as a well improved living standards. (Odupitan,
2017). Therefore, if sectors like the Agricultural sector is recognized and invested in, it will serve as
inspirations to companies who are in need of the raw materials, produced in our farms to establish in
Nigeria.
Past activities and investment in Agriculture has proved that Nigeria can survive with
Agribusiness and be recognized globally for this. A report published by PWC shows that as at early
1960, Nigeria is the largest producer of palm oil in the world; while report also indicates that the rich
nature of Nigeria at producing palm oil which spurred many countries into investing in it. However,
when Nigeria failed to believe in the power of Agriculture, countries like Malaysia has overtaken
Nigeria; Malaysia is regarded as the largest producer of palm oil in the world today. Against this
backdrop, this points to the fact that Agriculture has the potential to lift Nigeria from this current state
which the country is grappling to survive from because the palm trees that ought to be conserved and
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preserved for provision of employment opportunities, are being uprooted and fallen on daily basis for
palm wine. Thence, there is a need for Nigeria to trace her steps back and recognize the potentiality
of Agriculture in generating employment and save the country from this unemployment rate, generate
adequate food because majority of the Nigeria population live in abject poverty, and reduction of
inflation rate in the country while also enticing industries and companies to establish and invest in
the country. Although, there are efforts by local farmers to restore this past glory but their efforts are
not enough without efforts from the government. Thus the Agricultural export remains under 5%
since the introduction of structural adjustment programme, while the oil sector dominates the export
trade (Oni, 2017).
However, to make the agribusiness sustainable in Nigeria, there is a need for food security,
improvement on living standard and so on. Schaller (2013) highlights that when it comes to
sustainability, food security has to be guaranteed, the living standard has to improve, and there have
to be economic development and prosperity in the rural area. Hence, the commercialization of
Agricultural as well as investment becomes some key strategies for that could enhance the promotion,
modernizing and attaining a sustainable growth and development. However, one challenge for
Nigeria is recognizing the limitations that have proven to be a limit the growth and development of
the agricultural sector, not only that but to eliminate them and supplant them with something better
that will attract investors and along these lines to improve the area same way with the economy. In
2013, CBN reports that the Agriculture sector contributed about 22% of Nigeria GDP while Crude
Oil 14% telecommunication 9% and manufacturing 7% (US Department of State, 2014).
Administrations, media communications, finance and construction contributes about 52% of the
GDP, and at 2016 the agricultural sector contributed 24.18% of the GDP more than oil and assembling
joined (CBN, 2016). Therefore, Nigeria can still become great like it was in the past if the economy
is diversified and agriculture regarded as one of the major source of income in the country. Hence
there is a need to study the sustainable growth of Agribusiness in Marketing and Distribution in
Nigeria.
Object of Research
The study aims at investigating the problems hindering the possibilities sustainable a growth
of agribusiness in Ekiti state, thus serving as a model for other states with the potential of starting an
Agribusiness which will eventually open the government’s eyes towards the potentiality of
Agribusiness in Nigeria.
Task of Research: The task of this research shall include but not limited to professing
strategies, and solutions to the sustainable growth of Agriculture and distribution in Nigeria. This is
believed to further enhance the study to achieve the following objectives:
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1. To evaluate the potentiality of Agriculture in generating employment in Ekiti state,
thus reducing unemployment rate in Nigeria and also to generate adequate food supply in Nigeria
2. To prepare Ekiti state for potential industries and companies to invest and establish in
the country.
3. To review relevant scientific materials in Agribusiness and their performance in
Nigeria.
4. To identify the challenges of Agribusiness in the Ekiti state and Nigeria at large.
5. To carry out a survey to identify measures to improve the performance of Agribusiness
in Ekiti state and Nigeria at large.
Research Methods
The nature of this research which involves the analysis of literature available on Agribusiness
and sustainable agricultural growth in Nigeria informs the use of secondary sources and primary data
sources for deduction and induction. Also, Graphic and statistic representation will be employed to
represent the case. Against this backdrop, the study will adopts the use of qualitative and quantitative
research approaches which is believed will enable the researcher to acquire detailed information based
on knowledge and experiences of participants. This method involves the researcher acquiring data
from both the primary and secondary sources. As stated earlier, while the secondary sources includes
the review of existing literatures in the form of journals, statistics publications and so on in this field,
which helps to derive knowledge and understand the Agribusiness and Agricultural growth in Nigeria,
the primary data will be sourced from a survey using interview not only to derive information from
respondents but also to observe their expression towards information being given, thereby adding the
knowledge on the subject of study.
However, the respondents are drawn from the local farmer’s associations and persons in other
relevant agency in the area of this study. The researcher resulted to using members of this association
because of their understanding of the subject of study, knowledge and experience in the research to
help achieve the aim of the study. Against this backdrop, the data derived will be analyzed, presented
for proper understanding of outcome and recommendations made in line with the stated objectives of
study.
Research Structure:
In line with the institution where this research will be carried out, the research will include and
introduction to the subject of study which is the Sustainable growth of Agribusiness marketing and
distribution in Nigeria. This section will include the statement of the research problem, its
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significance; statement of the research objectives, questions with the purpose of suggesting ways of
improving Agriculture and Agribusiness in Nigeria. The first section will focus on the theoretical
aspects such as the concept of sustainable growth in Agriculture, Agriculture and Nigerian Economy,
Agriculture and Poverty Reduction in Nigeria, Challenges of Nigerian Agricultural sector which will
focus on Marketing problem, storage and Processing, Poor Infrastructure, Agricultural labour,
Inadequate capital, Poor Policy Articulation, Dual sector model by Lewin and Schultz theory of
Traditional Agriculture among others.
The second section will focus on the methodological approach for the empirical study, ethical
consideration and the limitations of study and the presentation of the empirical research based on the
research outcome etc. While the third will contains, SWOT analysis and Nigeria Agriculture, the
fourth part will contain the strategies for improving Agri-business and distribution in Nigeria while
also projecting Agribusiness potentiality as a major source of Nigeria’s source of economy.
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1. THEORETCICAL CONCEPTUALIZATION OF
SUSTAINABLE GROWTH OF AGRIBUSINESS
MARKETING AND DISTRIBUTION IN EKITI STATE
1.1 The Dual Sector Theory
This theory focuses on the issues identified with underlying change and economic growth
problems identified with structural and economic change and growth. Here, Lewi challenged us,
utilizing this theory to expand on ways to solve problems of significant worry to the less developed
nations. Like most growth scholars, Lewis liked to regard skills as a type of heterogeneous capital as
opposed to regarding them as a trait of laborers. Although, he never failed to recognize the importance
of the human capital when he say that even the unskilled worker is of more use to the capitalist sector
after he has been there for some time than is the raw recruit from the country (Lewis 1954); hence,
the skilled labor might well be a bottleneck in an expanding economy.
Lewis highlights the existence of two sectors, in any given economy. The capitalist and the
subsistence sectors with abundance work; he finds in this, the seed for the subsistence sector. While
the theory acknowledges that the huge nature of the capitalist sector is that it uses reproducible capital
what's more, that it produces benefit, there is excess work from the subsistence sector, the capitalist
sector, draws its work from the subsistence sector and because of fast expansions in populace in as
of now thickly populated nations, the supply of unskilled labor work is restricted, subsequently the
capitalist have the ability to try and utilize a greater amount of this incompetent workers to build the
supply rate. What this implies is that in the subsistence sector, labor is employed up to the point where
its marginal product is zero while the capitalist sector labor will be employed up to the point where
its marginal products equals the wage rate (Gary, 2011).
Lewis' thought that capitalists or governments would rapidly contribute to soothe human
resources bottlenecks appears to have been excessively hopeful. A business may put resources into
the representative's firm-explicit abilities; however has no motivation to put resources into general
abilities that improve a laborer's engaging quality to different employers. Despite the fact that
government may have Instruction Service responsible for their educational system, however this
scarcely organizes with the part of government managing economic development.
The economy sector could grow simply by coaxing workers out of the conventional sector or
from the positions of the jobless, and the traditional sector could make up for any misfortune of
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workers by drawing workers from a pool of subsistence labor (including women and children)
(Ootsuka 2011, p. 238).
Hence, there is a need to equip the human capital, to meet up with the standard needed by
investing in their education or training which will automatically give rise to markets for education.
Consequently, the outcome is that resources for economic development go excessively to investments
in non-human resources without unequivocal thought of the overall benefits of human resources
investments.
Joining the human and non-human resources into a single factor of production will likewise
jumbles a significant element of the development process itself. Although both kinds of capital are
accumulated through investment, investment in human capital occurs in a market that is very different
from the markets for non-human investment (Lewis, 1955). Hence, physical capital can be aggregated
in an unoriginal market where it is not significant for the investor and the proprietor to meet,
henceforth, the subsequent capital can be claimed by either the producers or leased by them in an
impersonal factor market. Actually, human resources amassing is represented by as far as possible
and social imperatives that have portray the workers as individuals. To this effect, Lewis in this
model submits that while human capital factors are relevant for the analysis of any labour
productivity, it is important to consider the net earnings of the workers which also include their wages
because it is relevant for assessing their well-being. According to Lewis (1997), Wages are the sum
of two components, that is, a return on investment in human capital as well as an economic rent earned
by the workers because human capital cannot enter the production function without being embodied
in an actual person Thereupon, laborers dispense themselves between these two sectors in order to
adjust net profit. Thereupon, when the total work market is in harmony this lease is something similar
for all laborers, paying little heed to their work environment or their kind of expertise, and mirrors
the shortage worth of laborers fundamentally
From the forgoing, it is evident that Lewis was basically a macro-economist that was deeply
immersed in the economic history and the history of thought, which both neglected subjects today. It
is obvious in his works that he generally picked an overall equilibrium approach, not just regarding
working inside a domestic two-sector world yet additionally concerning the relationship of the typical
developing country to the world economy. To this effect, his idea of dualism, that zeroed in on the
component of labour market, rural and urban, has since keeps on bringing to the table a hypothetically
valid, observationally pertinent and essentially useful framework for managing some principal true
issues of development.
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1.2. Schultz Traditional Agriculture Theory
As discussed in the early part of this research work, Agriculture plays a major role in the food
security and economic development of any given country. Notwithstanding, the greater part of the
total populace in the rural areas depends directly or indirectly on agriculture as a source of livelihoods.
As the world population increases and migration to towns and cities intensifies, the number of people
not producing food also need to increase grow.
Agricultural development as indicated by Timmer (2019) is a multi-sectional action that help
and promote positive changes in the country and urban territories. Hence the main objective of
agricultural development in any given country includes the improvement of material and social
welfare of the people. Consequently, agrarian advancement is a part of rural development; however
the rural areas cannot be developed without its agriculture being developed because of the fact that
about 90% of the rural inhabitants are occupied with rural agricultural practices as their significant
source of income. Consequently, agricultural development theory is vested with the improvement of
material and social welfare of individuals which is frequently seen as incorporated way to deal with
improving the environment and prosperity of individuals of the community. Schultz in the traditional
agriculture theory focuses on a kind of farming based wholly on the kinds of factors of production
that have been used by farmers for generations (Schultz, 1979) It has be proven in this current era
that this kind of agriculture often, display depressing results in that the incomes. Thereupon, the issue
that Schultz sets out to settle is the way traditional agriculture can be changed into a profoundly useful
sort of cultivating which Schultz viewed as an investment problem. To address this issue of low
production, Schultz unlike Lewi attests that the arrangement does not lie in the infusion of capital
into the rural area, however to decide the kind of farming investments. The conventional agricultural
sector cannot grow with the guide of the traditional production factors only, expect at a significant
cost. New, totally different production factors are necessary (Schultz, 1961).
The one who farm as his forefathers cannot produce a lot of food regardless of how rich the
land or how hard he works. The farmers who approaches and realizes how to utilize what science
thinks about soils, plants, animals, and machines can deliver an abundance of food anyway the land
be poor. Nor need the work so hard and long. He can deliver such a ton of that his siblings and a part
of his neighbors will move to town to bring in money (1961, p. 3)
He poses three questions which he thereafter sets out to discuss:
1. Can low income agricultural communities increase their output through a more
efficient allocation of production factors?
2. Which factors of production are mainly responsible for the differences in growth rates
of agricultural sectors in different countries?
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3. Under what circumstances does it pay to invest in agriculture?
Schultz avers that the resource allocation in the traditional agriculture is indeed large and
efficient but despite how efficient it is, there are not very much to be gained by reallocating factors
to this kind of agriculture. Hence with the second question, he discerns a hierarchy of importance.
Contrasts in nature of land are the most un-significant ones. Differences in actual capital stocks,
quantitatively and abstractly, are truly huge. Notwithstanding, the genuine considerable contrasts the
critical ones for the development rate in agriculture have to do with contrasts in the abilities of those
playing out the work and dynamic on the farms. The information that makes the change conceivable
is a type of capital, which requires investment not just in material contributions to which this
information is embedded but significantly likewise in individuals (Schultz, 1964).
As at the time Schultz was developing this theory, the world was a much different place, infact,
much of the substantial transformation of agriculture worldwide that has taken place since then can
be attributed to the kinds of investments in the knowledge and people.
In 1961, of the world’s 3.0 billion people, an expected 770.8 million (25.1 percent) were
directly occupied with cultivating, and agribusiness addressed 13.4 percent of generally pay
(estimated regarding Gross domestic product). In the half century since, the world's total populace
has expanded by a factor of 2.4, to a sum of 7.4 billion, and a lot of the worldwide economy has
contracted. In 2014, of the world's 7.4 billion people, an expected 1.3 billion (18 percent) were
directly occupied with cultivating, however farming addressed simply 3.9 percent of by and large pay
(World Bank, 2017, p. 7).
Against this setting, it is not productive to put resources into the sort of farming, capital that
is now in presence on traditional farms. Be that as it may, all things considered, present day factors
must be embraced, however this can possibly happen when farmers have a motivator to do as such.
It is consequently farmers and their capacities that structure the focal component in this theory.
Additionally, in middle and low-income nations, where dominant part of the world's farmers
are found, agriculture still establishes a more noteworthy portion of national income and employment.
Today, a great number of people still depend on agriculture as their source of livelihoods, and nearly
half of the world’s population still lives in rural areas, mostly in agriculturally based households
(Alston & Pardey, 2014). Likewise, many are subsistence farmers, working small farms utilizing
next to no in the method of attractive sources of information other than the land they farm and their
own family work. A dominant part of the world's poor population can be found among these rural
occupants. Thence, as Schultz (1979) famously observed in his Nobel Prize Lecture, “… if we knew
the economics of agriculture, we would know much of the economics of being poor” (p. 56). All these
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point to the fact that for a country to record increase in agriculture, there is a need to embrace the
modern form of agriculture.
Therefore, while the Dual sector theory highlights the importance of labour in the agricultural
sector of a developing economy like the case of Nigeria, Schultz Traditional Agriculture theory helps
to polemize the proposition that Nigeria need to grow out of the traditional method of Agriculture
and embrace the modern techniques which will aid commercialization and help boost the country’s
economy.
1.3. Agriculture and Nigerian Economy
Nigeria, with a vast geographical land mass of about 923,768 square kilometers with a
population of around 200 million inhabitants is the largest country in African continent (NPC:2011
Est.). Nigeria shares borders with four different African countries, the tropics of Guinea Gulf on the
western Coast of Africa; Republic of Benin, Chad, and Cameroon in the east. With this amount of
landmass, Nigeria is honored with a variety of vegetation, dynamic geography, and practical agro-
climatological conditions. Nigeria is additionally one of only a handful not many in the continent
blessed with great arable farmland for agriculture. As discussed earlier, prior to the discovery of crude
oil, Nigerian business industries, represents 32% of the Gross domestic product, fabricating 11% and
agriculture 30%. This shows that the agricultural sector played a significant role in the economic
growth and extension development the country experienced in the past. Thus, (FAO, 2012) projects
that the capacity of agriculture at generating overall GDP growth and its near advantage in decreasing
poverty will vary from one country to another.
Just like in every other country, Agriculture in Nigeria includes the cultivation of land for crop
production, the rearing of animals for the use of man as well as for the feeding of animals. In addition
to this, Agriculture has other sub-sectors such as forestry, fishery, processing and marketing of the
agricultural products. The agricultural sector indeed has the potentials to provide job opportunities
and raw materials for many agro-allied industries (Nwankwu, 2014).
As it has effectively been demonstrated that farming is an all-inclusive age-long practice in
the third world and agricultural countries. It turns out to be exceptionally hard to discard the
significance of agricultural improvement to financial development and advancement in numerous
underdeveloped nations as it is enthusiastic about their progress to economic flourishing.
Accordingly, agriculture is accepted to offer more than one quarter to GDP in the most developing
countries of the world. The statistics are a lot higher in the least developed nations (Joined Country,
2017). As indicated by the statistics done by World Bank (2018), agriculture fills in as a safe source
sustenance life, for over 2.5 billion individuals on the world. To this effect, the agricultural sector
engages a large number of the world population directly or indirectly in the value chain but despite
21
this power to develop the economic development of a country like Nigeria, Beinteman and Stadt
(2016) asserts that majority if the African nations which Nigeria is a part of, remain dominated by
small-scale farmers who only employs the use of crude tools and the use of largely fragmented land
to cultivate the crop and rear animals for man’s advantage. Majority of this said peasant farmers lives
in the rural communities of Africa, while accounting for the overwhelming 80 percent of the labor
force. While majority of the poor and food insecure in Africa lives in the rural areas, majority of them
depends greatly on agriculture for their source of livelihoods. Thusly, to help the wide based
neediness decrease and to accomplish the food security in Africa, Grevelink et al (2012) assert that
limited scope agribusiness should be a focal venture center.
Agriculture constituted about 60-70 percent of Nigeria’s export in the early 1950s and 1960s.
In fact, Nigeria was regarded as a net exporter of most agricultural products like cocoa, rubber, oil
palm, palm kernel, groundnut among many other cash crops with economic value (Daramola et al,
2017). The profit generated from these exports of agricultural products serves as the main source of
revenue generation for the government at this period. Be that as it may, Nigeria lost her confidence
in agriculture because of the disclosure of crude oil in the last part of the 1960s which ultimately lead
to the high flood of unfamiliar trade income for the country. The ramifications of the oil blast mark
the decrease in the other non-oil sectors particularly the agricultural sector that got less consideration.
Full emphasis was placed on the oil exploration, extraction and the profits it brought (Ifeanyi et al.,
2018).A report from FAO: 2006 indicates that the trend of agriculture over the past decades in the
country has not been favorable.
However, while Nigeria gained tremendously from the crude oil sector, the oil and gas sector
like the forgotten Agricultural sector has been experiencing a decline for some years now due to the
several activities like vandalisation of pipelines and insulations in the Niger Delta region of the
country to the extent that despite that the fact that the production volume in the barrel between 2008
to 2009 shows a 0.45 percent increase, from 768,745,932billion barrel to 780,237,940 billion barrel,
these activities which have account for the drastic decline in the accrual to the government.
The trend of agricultural output, RGDP and oil prices over the period of 1980-2003 is
represented in the chart below.
22
Figure 1: The trend of agricultural output between 1980-2003 (Source: Author, 2021)
The above chart reveals that agricultural output has an upward trend. The chart also reveals
how RGDP was higher between 1980 and 1990 just exactly when the government hasn’t totally
withdrawn its funding of the Agricultural sector. However, the chart also reveals a decline in 17
agricultural outputs in the year 2009. This decline is due to the government’s removal of the allocation
to the sector.
Lending credence on the above conversation, past studies have showed that market-based
between inter-sectoral linkages can fill in as the source of agribusiness' commitment to economic
growth. Johnston and Mellor (1961) observe that agriculture adds to economic development and
improvement through five diverse inter-sectoral linkages. These sectors are linked through:
1. supply of surplus labor to firms in the industrial sector
2. supply of food for domestic consumption
3. provision of market for industrial output
4. supply of domestic savings for industrial investment
Notwithstanding the abovementioned, Block and Timmer (2014) added a short rundown of
non-market based between inter-sectoral linkages through which it is accepted that agriculture can
contributes indirectly to the economic development of Nigeria. Albeit, these linkages emerge from
governmental learning by doing, expanded economic stability, food security, the general proficiency
of rural family and decision-making. The importance of indirect non-market linkages that can
23
improve the quality of the major production factors like labor and capital (Timmer: 2015). To this
effect, agriculture can indirectly contribute to the economic growth of Nigeria.
Nevertheless, in spite of eminent and distinctive instances of how agriculture can help change
and lift the economy of a country, agribusiness is not generally a panacea for financial turn of events
and poverty reduction. Therefore, a country that relies solely on agricultural export can be adversely
affected by global economic shocks (Cuong, 2019). In any case, higher agricultural efficiency can be
indispensable for economic development, particularly in Nigeria and Africa in general, in light of
strong improvement linkages and relative benefits in trade. Against this backdrop, higher agricultural
productivity has the potentials to deliver a triple dividend; sustained food security, higher human
development and lower pressure on land and water (UNDP, 2012).
1.4. Concept of Agribusiness
Agribusiness as a concept is an amalgam of two different words ‘Agriculture” and “Business”.
While Agriculture is generally described as the science or practice of farming, which include the
cultivation of the soil, to enable the growth of crops; rearing f animals for the food provision, wool
and other products, Business is described as the efforts of individuals, organized or unorganized, and
the activities of such individuals to produce and sell goods and services for the purpose of making a
profit. Thus, Agribusiness as a concept can therefore be described as the efforts made by farmers who
are deeply involve in either of the different types of Agriculture, to engage in sales in order to
maximize profit.
Since the early sixties, the concept of Agribusiness has become popular in the fields of
Agriculture and Economics. As a concept that originated in 1957, it was coined by two Harvard
Economists, Johan Davis and Ray Goldberg. Abinitio, Davis described the concept as the “Business
responsibility and the market for farm products. However, after series of discussions, the term
Agribusiness earned for itself, a more concrete definition that captures activities of the farmers from
farm till he is able to maximize profit from the products of his effort. Henceforth, Davis and Goldberg
characterized it as "the entirety of all activities engaged with the manufacturing and distribution of
farm supplies; production procedure on the farm; and the capacity, preparing and dispersion of farm
commodities and things produced using them". To further elaborate this definition, Goldberg (2011)
includes “all firms and institutions”. This spurred him to labeled it on Agribusiness commodity
system.
From this definition, it could be deduced that these definitions were based on the farm
production and distribution. This could be as a result of Davis background who was the head of the
National Council of Farmers Cooperatives between 1944 and 1952 before moving to join Goldberg
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(who experienced childhood in the farm) at the Harvard school of Business Administration to
encourage business ideas applied to farm operations (Fusonie, 2015).
However, due to paradigm shift and series of development that has hit the Agriculture and
Economics world, many definitions of the term Agribusiness have emerged as a result of efforts from
scholars all over the world. Schmitz et al; 2010 Pisani 2014 expanded the definition to include inputs
to farms as well as activities to move farm products to markets. This clarifies how agribusiness was
characterized to incorporate "each one of those business and the management activities which are
performed by firms to give contributions to the farm sector, produce farm products, as well as
interaction, transport, account, handle or market farm products" (Downey and Erickson,
2017).Notwithstanding the concrete nature of this definition, Ricketts and Ricketts (2019) consider it
essential to additionally expand up the definition to incorporate the manufacturing and circulation of
various farm supplies to the production agriculturist and the capacity, preparing, advertising,
transporting, and conveying of agricultural materials and consumer products that were delivered by
production agriculturalists. Therefore, it becomes evident that the concept of Agribusiness has moved
Agriculture beyond its original meaning to include business. Ewell Roy (2012) defines it as the
coordinating science of supplying”. Ewell’s definition came in the wake of the debate on whether to
regard Agribusiness as an ‘art” or “science”. But scholars were able to find a balance between this
two and submit that Agribusiness can function as both an “art and a science of managing any
agricultural business enterprise. Its ability to align together, the various skills of the individuals or
organizations involved in running a profitable venture makes it an art while the risk taking, which is
backed up by an objective gathering as well as analysis of data and information makes it a science.
Consequently, Agribusiness comprises of a body of knowledge, which is acquired from different
disciplines. (Hassanzoy, 2017). Against this backdrop, Agribusiness is a dynamic and foundational
attempt that serves buyers worldwide and locally through innovation and management of multiple
value chains that convey esteemed goods and products got from the sustainable orchestration of food,
fiber, and natural resources. (Edwards & Schultz, 2005).
From the foregoing, it becomes apparent that the idea of Agribusiness suggests the interaction
through which corporate firms supply agricultural inputs or buy diverse farm yields, measure them
for forward dissemination in a more incorporated examples. Along these lines, Agribusiness can be
separated into three essential tri-aggregates which incorporate:
1. Farm Supply
2. Farm Production
3. Processing Distribution.
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The synergy of these three tri-aggregates is indeed an interesting option for industrialization;
in such a way that it possess the capability to transform the Agricultural sector of any given country,
while also creating industrial jobs and income to help boost the economy of the country. To expatiate
further, Agribusiness possess the capability to provide much employment and abundant of food for
the labour force, can also expand the market, while likewise expanding the livelihoods of those that
are engaged with the supply segments, preparing just as the conveyance of the agri-mechanical items.
The intrinsic value of agribusiness is that, it comprises a cooperative energy of agro-industrial linkage
and in the nutshell, engaged with the creation and appropriation of food and fiber needs of the
economy (Tersoo, 2013). Along these lines it produces in reverse combination and furthermore
framed what Pawa depicted as linkages, in this way working with laborers, from the farm to different
areas of the tri-aggregates.
From the forgoing, it is no gainsay to assert that the agribusiness possesses the opportunities
which have great impact on the economic status of any given country especially the fact that it
possesses opportunity to alleviate poverty from any nation. Therefore, agribusiness is capable of
forcing agricultural growth by engendering a strong link with small holders that can reduce poverty
at rural level to commercial holders who can reduce poverty in a country.
Although, the farm supply and production components are very important but they depend on
such infrastructural facilities like land, labour capability, water and management (Okyida & Heady,
2012). With this impact, the idea of Agribusiness can thusly be best evaluated through the sort of
collaborations that exist among agricultural and the non-agricultural sectors. Pawa avows that the
value chain got from agribusiness openings is that, as the premium and market for agro-processing
items expands. The store undertakings part of the tri-aggregates outfits the farm sector inputs also,
benefits accordingly:
1. The level of profitable and business advancement of agro-related activities
2. The refinement of agro-mechanical in reverse and forward linkages, the limit or level
of significant value adding market creation and the significance of dispersion and retailing.
Thence, in any agrarian country, higher agribusiness/ratio possess the power for diversification
of the country’s economy. This prodded Da Silva et al (2019) to place that “… moving the main
economic activities from the farm gateway to the agro-industrial area and its administrations may
address sector and lead to more elevated levels of efficiency and pay age just as higher portions of
non-farm work in rural areas” (p. 90). Therefore, the scenario becomes feasible through a dynamic
link between the Agricultural sector, industries as well as all other associated activities.
From the foregoing and the reality in Nigeria today, the agribusiness sector in Nigeria has not
proven valuable supporting the economic growth and development in Nigeria since 1960. As
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discussed earlier, prior to the discovery of oil in Nigeria the country relied heavily on the funds
generated from agribusiness exports which was further used in the development of other sectors
(Onwumere & Onyeike, 2017). Despite the heavy income generated from the exportation of oil in
Nigeria, the country’s economy has experienced a dwindling fortune as a result of the monopoly of
oil and gas as the only dependent economy in Nigeria. This informs Nto and Mbanasor (2011) opinion
that agribusiness sector productivity is important in achieving sustainable economic growth and
significant level of food security in developing economy like Nigeria.
Against this backdrop, the state of agribusiness in Nigeria today has drastically regressed, from
a time when the country was a major exporter of food products. Onwumere and Onwunisibe captures
the reason for this when they assert that “For the past 15 years, Nigeria’s business community has
focused on developing sectors other than agriculture, including oil and gas, telecommunications, and
financial services. The agribusiness sector has not received consistent or adequate government or
private sector attention. n. As a result, the agribusiness sector has not developed as rapidly as other
sectors of Nigeria’s economy” (2013, p. 2). To this effect, Agribusiness in Nigeria today has become
informal which happens mostly at a small scale level with around 90% production happening at farms
with less than 2 hectares of cropping yet, the country imports majority of agricultural products that
the country’s population consumes. (USAID, 2019).
It has been noted that in large countries such as Nigeria, there always exist a close association
between the size of the agribusiness sector and its productivity. In economics like this, the sectoral
composition output to a large extent reflects the structure of domestic demand. This shifts the
structure of demand away from food and agricultural products, as soon as the income grows; this is
initiated by the process of agricultural transformation. To this, (Hear, 1985 and et al, 2013) attest that
one of the important determinants of income growth is agricultural productivity.
In this case, agribusiness is linked up with the other sectors and Umubali (2011) described
this as backward or forward linkages. Farm inputs are seen as capital goods for further production by
other sectors while foods are for human consumption and for industrial production. Thus, capital
mobilization becomes crucial and limiting factor that influence the growth of the agribusiness sector.
However, Ugwu and Kalu (2011) identified the need for maximum government interaction if
agribusiness in Nigeria must be returned to her past glory.
Notwithstanding, subsequent to considering the agribusiness in Nigeria, Pana isolated it into
four segments which are: farming inputs supply companies; producing farm; processing agribusiness
firms and food marketing distribution.
1. Farm input supply business: this incorporates the agricultural chemical inputs
provider of fills, pesticides and the herbicides seeds and feed concentrate providers; composts,
27
agricultural machinery and equipment suppliers, automobile (the tubes; tyres). Manufacturers foam;
credit and vertinary services suppliers. He further extend this supply to encompass the supply of sack
containers, furthermore, cases required in for packaging; water, power, phone, medical insurance and
so on also included
2. The Producing Farm Firms: These are crop producers and animals producers that
are farmers dissipated everywhere on the country. The development of this part depends upon
accessible tremendous land, improved useful powers, and complementarity with industry that ingests
overabundance agricultural work.
3. Food Processing Agribusiness: This fuses food and natural product item,
manufacturers of brew, soda pops, cocoa beverages, and tea; makers of confectionary sugar sweets,
chocolate, cakes, bread rolls; tobacco processors or makers; meat processors; wood processors and
furniture and wholesalers, paper plant administrators and tissue paper makers; calfskin and footwear
makers; food packaging and compartments creators; cotton taking care of, turning, weaving and
material associations; food processors of cornflakes, jam, bread, spread, milk, margarine, and tomato
puree; oils, cleaning agent, and toothpaste producers fishing associations, fish processors, packers
and shippers.
4. The Food Marketing and Distribution Agribusiness: Organizations in the nation
incorporate private food stores; wholesalers and retailers of frozen food including general stores and
so on These agribusiness firms are dissipated wherever on the country yet are moved in three standard
mechanical gatherings in Nigeria; Kano, Kaduna, Jos in the north; Lagos, Otta Ibadan in the south
west and Port Harcourt, Aba, Nnewi, and Onitsha in the southeast. An outline of a couple include:
Taraku Oil Industrial facilities Ltd, Abakiliki Rice Processors, Sorghum Out grower Plan with
GuinnesPlc, FumanAgric Rural Items Organic product Juice Makers and Cocoa Exporter Ed and F
man Nigeria and so forth.
1.5. Importance of Agribusiness Development in Nigeria towards Sustainable
growth
Considering the value chain process through work, income, markets and poverty reduction
from the agribusiness, Nigeria as a nation can achieve supportable development from the raising of
farms and non-farm equilibrium through the following
Employment: The agribusiness area is good for creating business both directly (on farm) and
indirectly (non-farm) of the plentiful rural labour supply. Through work creation, it redesigns and
broadens the market and interest for farm produce, also as the advancement of business agrifood
system in the rural areas is good for energizing economic development. The adequacy and
28
development of post-harvest dealing with, planning and promoting is a huge factor in the two edge
activity of giving food and work to people.
Income Generation/Poverty Reduction: The commercial value of agribusiness is good for
creating higher incomes. These new pay levels are good for empowering little farm holder into huge
holders. The extended market expands the financial ability of the input suppliers and the market for
the processing firms. Anyway supportability of incomes gathering from agribusiness relies to a great
extent upon the powerful connection between the farm and the non-farm sectors. Right when such
earnings increment into investible abundance it invigorate the improvement of the rural non-farm
economies and this transforms into a huge factor in rural poverty alleviation.
Food Security: An effective agribusiness is equipped for guaranteeing accessibility and
qualification of individuals to adequate food consistently to ensure sound life. Agribusiness should
guarantee food accessibility (via supply) and support entitlement of individuals with plenty
alternative commodity bundles for the individuals (Harris and Heyer, 2010).
Complementarity/Structural Transformation: An essential connection between the farm
and non-farm areas makes an incorporated creation structure and a harmony among huge and little
creation units. A one of a kind agribusiness empowers the improvement of the country non-farm area
through different linkages: while agriculture requires inputs given by the non-farm endeavors. The
rural non-farm area makes combination of backward and forward linkages driving a speedy primary
change.
Challenges of Nigerian Agricultural Growth
As stated earlier, agriculture is very important in majority of the developing counties. In fact,
is sometimes used to define rurality within the local economy. To this effect, any strategy by the
federal government to improve the performance of agriculture in any given community especially in
the rural community of Nigeria like in Ekiti state will contain an agricultural development component.
Anriquez and Stamoulis (2017) write that while agricultural development aims at improving the
welfare of populations through sustained improvements in the productivity of the agricultural sector,
rural development aims at the improvement of welfare of rural populaces through the sustained
development of the rural economy, which incorporates agriculture, yet may not be its only component
and not really the most powerful. However, despite this fact that agriculture is mostly practiced in the
rural settlements which also has the potentials of eradicating poverty from the country, rural areas in
Nigeria are faces with series of problems. These problems have been summarized by many
researchers to include inadequate levels of agriculture productivity especially in food crop; high levels
of absolute and rural poverty; and poor level of infrastructure facilities (Shiru, 2018). Thus, Tya:
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(2011) avers that the fundamental problems facing agricultural mechanization in Nigeria today
include the adoption of mechanization strategies that are mostly caused by the government and the
international agencies who have failed pay sufficient attention to the interests of farmers at the local
level as well as the processes of technological change (Kutte and Tya, 2011). This happens despite
the heavy investment Nigeria has made to improve the agricultural sector. Observing the assessment
of the agricultural sector as well as the evidence of the huge sums of money spent, especially when
we at the human development it becomes evident that the Nigerian government and other
international agencies have been prioritizing the wrong aspect of the agricultural sector.
Table 1: Budgetary Allocation to Agriculture in Nigeria from 1990-2002
Sources: CBN Statistical Bulletin and Annual Report
The above table shows the budgetary allocations and actual expenditures for the period of
1990 to 2002, albeit, the government set up strategies and financial responsibility towards improving
the agricultural sector, yet these approaches and responsibility are deficient. Consequently, it is no
repudiate that these approaches have not accomplished food independent, confidence, reduction in
poverty and rural development objectives. The Nigeria Agriculture Public Expenditure Review
(NAGPER), a synergistic report completed by a research group from the International Food Policy
Research Institute (IFPRI) and the World Bank (2018), showed that public spending on agriculture
in Nigeria is under 2% the government expenditure during 2001 to 2005 (Christopher et al., 2010).
Accordingly, the insufficient subsidizing of the agriculture sector in Nigeria has expanded the poverty
rate in Nigeria; consequently one of the difficulties confronting agricultural sector.
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Despite the several agriculture research institutes made available in Nigeria, to address the
challenges faced by agriculture and the agriculture sector there is little or no changes to success been
recorded. The significant capacity is to give fundamental of agriculture research information for
strategy creators and furthermore to subsidizing organizations. Additionally, to give research
institutes move of examination initiated innovation to farmers which basically measure research
advantages to society, while likewise giving feedbacks to researchers on which advancements or
innovation segments are fruitful at farm levels. The following is the list of the Public Agricultural
Research Institutes (NARIs) under the aegis of Agricultural Research Council of Nigeria (ARCN).
Table 2: Agricultural research Institutes in Nigeria
1. National Root Crops Research Institute (NRCRI) Umudike
2 National Horticultural Research Institute (NIHORT) Ibadan
3. Cocoa Research Institute of Nigeria (CRIN) Ibadan
4. Nigerian Institute for Oil Palm Research (NIFOR) Benin-City
5. Rubber Research Institute of Nigeria (RRIN) Benin-City
6. Nigerian Institute for Oceanography and Marine Research (NIOMR) Lagos
7. Lake Chad Research Institute (LCRI) Maiduguri
8. National Veterinary Research Institute (NVRI) Vom
9. National Institute for Fresh-Water Fisheries Research (NIFFER) New Bussa
10. Nigerian Stored Products Research Institute (NSPRI) Ilorin
11. National Cereal Research Institute (NCRI) Badgi
12. Institute for Agricultural Research & training (IAR&T) Ibadan
13. National Animal Production Research Institute (NAPRI) Shika Zaria
14. National Agricultural Extension & Research Liaison Services
(NAERLS)
Zaria
15. 15 Institute for Agricultural Research (IAR)
Samaru
Zaria
Source: “The Role of Research in Agricultural Development” by Dr (Mrs.) Adenike Olufolabi,
Executive Director, National Horticultural Research Institute, Ibadan Nigeria.
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The table above shows the existence of so many research institutes in Nigeria that can assist
the Nigerian economy greatly while its contribution can adequately compete with the oil sub-sector
of the economy; however, the reverse is the case. In view of this, it becomes very important to identify
the various challenges affecting agriculture in Nigeria today as well as factors inhibiting the
performance of the agriculture sector toward designing suitable policy strategies that would create
conducive climate for promoting accelerated commercialization and growth of the sector. Therefore,
the following factors are very important:
Lack of Development
The lack of development is a major factor affecting agriculture in Nigeria. Developments like
social, economic, environmental developments and political development. Today, majority of the
able bodied-men and women who could have loved to venture into agriculture are running away from
the rural areas because of the lack of development that characterized these areas. Hence, the lack of
development even at the rural environments has encouraged able-bodied men and women to migrate
from the villages to the cities where they are sure of better social amenities like pipe borne water,
electricity and centers for recreation and so on (Nwankwo, 2014). Therefore, identifying and tackling
the issue of development in all areas in the Nigeria agricultural system will help create a climate to
improve performance, and will help promote and accelerate the growth in this sector (Oni, 2013).
Additionally, the issue of Land Tenure system is another test farming is confronting today. In
Agriculture in Nigeria, larger part of Nigeria that are useful for cultivating and other agricultural of
the rural areas, ownership of land is not obviously characterized, yet the land belongs to families.
Consequently, a large number of fertile land/soil may be left uncultivated and fragmentation of land
may cause low productivity (Yakubu, 2019).
Despite the low numbers of farmers in Nigeria, majority of the food consumed in Nigeria
especially in the rural areas are produced in the country. But the lack of storage facilities is another
challenge facing agriculture in Nigeria. The absence of storage and processing facilities influence
both the national food security and the family food security. When there is a great deal of harvest and
the productions of farm products appear to be sufficient, absence of good storage actually lead to food
shortage as the food will not be accessible or be in a decent condition when it's ideal for consumption.
Therefore, good storage and processing are needed in-order to ensure that food is available in good
condition whenever it’s required (Oni, 2013). Basic and successful technique for storing perishable
foods like tubers, fruits, vegetables are not really advanced and eminent in Nigeria when compared
with that of grains.
Storage is an issue for Nigeria as countless food produce perishes, considering the need of
storage and processing facilities. In spite of the fact that, notwithstanding the inaccessibility of good
32
storerooms, there exist the traditional techniques for storage however have turns out to be effectively
open to rat and having wooden floor which is an obvious objective for termite and furthermore a
portion of the storage are non-moisture proof surface which could get harm by water. With this
impact, because of the deficiency in storage and processing system, farmers record substantial
misfortune when it's the ideal opportunity for profuse reaping.
Ignorance and Illiteracy
Another challenge facing the agriculture in Nigeria today is ignorance on the part of the
citizens; especially the youths that have undermine the potentials of agriculture not only to provide
food but also to alleviate poverty from the country. Some Nigerian youths see farming as a very odd
Job, meant only for the illiterate and the people living in the rural settlement (Udemezue Anedo,
2015). In fact, some wealth Nigerians also corroborates this idea. In the eyes of some of Nigeria’s
wealthy class, farming is, ignorantly underrated and abhorred as poor peoples’ job. With this form of
mindset, the governments in Nigeria are also pretentiously doing very little or nothing in terms of
solving the nation’s food and agricultural Problems (Nwankwo, 2014). Therefore, for Agriculture to
get to its limelight in Nigeria and for it to be recognized as one of the sectors that can aid poverty
reduction in Nigeria, there is a need for the government and other investors to create awareness and
inform the ignorant ones about the potentials of agriculture. However, with the growing population
of educated Nigerians, one does not expect this level of ignorance but the level of illiteracy in this
area of study has become a challenge to Agribusiness in Nigeria.
A great number of the dedicated fulltime farmers in Nigeria can neither read nor write. This is
due to the fact that the illiterates are believed to be the suitable candidates for this kind of job. The
Local farmers are even as uninformed as they lack modern agricultural education. The height of
illiteracy there, is Nigeria’s total negligence and, or her non-usage of native languages in the nation’s
Pursuits for modern education. Hence, in this world today, people that still Studies in foreign
languages have not really started Learning, and this level of illiteracy and unawareness do often
constitute some serious Setbacks, even in Nigeria’s food production efforts (Akpan, 2010, p. 83)
The inability of these farmers to be able to read and write also constitute to the low productivity
recorded in the agriculture sector. Majority of Nigerian Farmer are still using the same outdated
manual farm tools - like cutlass and hoe - as their Forefathers used since many Centuries ago instead
of using some affordable modern agricultural techniques or simple machines that could bring change
in productivity (Yakubu, 2019). Consequently, the utilization of these sorts of techniques and
strategies likewise comprises an exceptionally extraordinary set-back in the nation's food and
agricultural out-puts. However, despite how ready some of the available and dedicated farmers are
financial status also prove a challenge to them from getting the modern equipment good for these
33
jobs. Most of these farmers are poor and cannot bear to purchase tractors, its accessories which will
make agribusiness simple and productive.
Labor and Marketing
The unavailability of required labor is a major factor affecting the agriculture sector in Nigeria
today. Because of the nature of the country, the traditional system of cultivating utilized in Nigeria
influences the utilization of farmland as a result of the accessibility of work. The agribusiness system
is essentially managed without the utilization of machines, consequently human work gets significant
in the production system, representing about 90% of the farm tasks. While under a semi-automated
framework human work is still up to 70% of the farm activities (NISER, 2011). Accordingly, work
could be and is influenced by the ceaseless relocation of capable the able young men and women to
the urban areas which thusly causes lack in the workforce and in time when workers are needed for
land preparation and harvesting. The main cause of this migration is the perception by young men
that farm labour cannot support them and their families (Chemonics, 2013). Similarly, marketing
incorporates the transportation of agricultural products from the farmers to consumers. A portion of
the issues of marketing influencing the farming in Nigeria today incorporate poor transportation, poor
packaging and low quality. Likewise, good roads are required to successfully transport goods from
one place to another. Yet, sadly, the general marketing system of the nation is primitive. However,
due to corruption in the country, construction of good roads and railways for transportation requires
numerous years and once in a while as long as 10 years to get an organization built as a result of
corruption. In fact, the little road and rail constructed are fond of crumbling as a result of poor
maintenance (Oni, 2013).
In summary, this chapter has successfully reviewed the Lewis’ dual theory and Schultz
Traditional Agriculture theory through which the study has been argued that the traditional method
of farming is obsolete and is inefficient for the substance growth needed in the agricultural sector in
Nigeria today. Therefore, it becomes paramount to apply the Lewi’s Dual theory into transforming
the agribusiness in Nigeria if it must arrive at its peak. Also, this chapter has been able to examine
the state of agribusiness in Nigeria. It is evident that Agribusiness has been declining ever since the
discovery of petroleum on the Nigerian soil. Hence the government that was supposed to provide
support to farmers has shifted her attention to the oil sector while the agricultural sector has been
abandoned and left alone. In addition to this, the agribusiness in Nigeria if faced by several challenges
which includes the ignorance and illiteracy on the part of the citizens who believe that farming is an
odd job meant for the aged-individuals in the society. Hence, promising youths are not to be involved
in agribusiness; the problem of labor and marketing stem from the unavailability of suitable
34
individuals to work as labor while the lack of development and storage facilities have provided the
farmers with little choice and space for preserving their farm produce.
To this effect, the next chapter will focus on the analysis of the case study of the agribusiness
in Ekiti state, which is believed to be a prototype of other states in Nigeria, the methodology employed
in this study will be discussed as well as the analysis of the data gathered from the survey and
interviewed conducted to investigate the possibility of a sustainable agribusiness in Nigeria.
35
2. ANALYSIS OF THE CASE STUDY OF AGRIBUSINESS IN
EKITI STATE
This part of this research study centers on the methodology and the methodological approaches
employed for the success of data analysis while also placing emphasis on the possibility of promoting
Ekiti state as an agribusiness center in Nigeria. Likewise, the potentials of promoting, and equipping
the available individuals that ready to work as labor will be analyzed in this part.
2.1 METHODOLOGY OF CASE STUDY OF AGRIBUSINESS IN EKITI
STATE
Lending credence on Kothari (2014), Methodology is concerned with the approach employed
in a research study for the purpose of generating solutions to the research problem. Consequently, the
fundamental purpose of this research is to "proffer strategies for the possibilities of sustainable growth
of agribusiness in Nigeria, using Ekiti state as a case study towards transforming the country into a
hub of agribusiness in the country. To this effect, data are sourced majorly from the primary
(empirical survey) and secondary (the review of journals, published works, and use of internet
materials, magazines, newspapers and so on).
Logical sequence for empirical research possibilities sustainable a growth of agribusiness in
Ekiti state are:
36
Logical sequence for empirical research for improving the performance of local farmers in
Ekiti state
Research method
For this empirical study, mixed method of research which includes the qualitative and
quantitative research methods was adopted. The qualitative methods, which employs the use of
interview conducted to capture and understand the feelings as well as the experiences of the farmers
in Ekiti state, especially on the potentiality of the state in becoming a hub for agribusiness in Nigeria.
Therefore, to carry out a reliable analysis of this current situation, it becomes very important to carry
out a PEST and SWOT analysis and evaluation of the current state of Farmers in Ekiti state towards
the possibilities for the sustainable growth of Agribusiness in Ekiti. This qualitative research involves
a case study approach, to explore in-depth information of activities, process, and operations of
individuals or group (Creswell, 2019). The quantitative method employs the use of questionnaire
which was used to survey and identify the several factors affecting the operations of farmers from
performing at their peak in the state. Therefore, this help in analyzing this current situation and
To conduct a quantitative and qualitative survey to identify
potentiality of promoting Ekiti sate as a hub for agribusiness in
Nigeria
To carry out an analysis of the current situation of farmers in Ekiti state and
measures for improving their activities in the state.
PEST and SWOT evaluation for the promotion of agribusiness in Ekiti through
the available local farmers in the state.
To develop startegies for equipping the available youths that are ready to work
as labour in the state.
37
measures for promoting and creating a sustainable growth of Agribusiness in Ekiti state. All these
help in the analysis of the information gotten from the respondents in contest, issues and the lessons
learned from the survey in line with research topic. Therefore, the respondents chosen for the
quantitative survey were local farmers from Ekiti state. Using the Likert scale measurement, the
respondents have the options of selecting from the five points that suits their opinion. The five points
are: Very Weak –VW, Weak-W, Neutral-N, Strong-S and Very Strong –VS.
Sampling Technique: in order to ensure that the chosen respondents have a sound knowledge
of this discourse and that is also relevant to this research, it becomes important for a purposive
sampling technique to be employed; it is believed that this research technique according to Patton
(2012) with help in deriving a rich information purposefully and strategically depending on the
resources and purpose of study. Hence, a list of the farmers’ association in Ekiti state was drawn and
respondents were selected through the cocoa farmer’s association supported by Ekiti state
government.
For the analysis of the data, the study employs the use of Microsoft Excel to analyze the date
gathered in order to get an accurate and reliable result for this study.
Looking at the major towns and local government in the state, Ikere, Ikole and Oye local
governments have 75 percent of the total farmers from these associations; thus, the sample size was
determined by using the level 95 percent, famers from these three local governments thus, they
become the suitable for this study.
The sample size was determined by using confidence level of 95percent, Nigerian cocoa
farmer’s population size is currently estimated at about 300,000, the margin error of 5 percent and
the ideal sample size is 384 for Nigeria. Since it is generally accepted that Ondo state is the leading
producer out of the seven cocoa producing states in Nigeria, it is allocated 25 percent of cocoa
farmer’s population (i.e. 25 percent of 384) for this study. putting into consideration that some of the
participants due to one reason or the other may decide to opt out of the process, a total 60 respondents
were selected to participate in this survey; thence, every respondents that contributed towards the
success of this research are certified members of the All Farmers Association that are contacted
through the help of Association and are expected to participate in the research.
The three local governments (Ikere, Ikole and Oye Local government) that happened to be the
study area are selected for this empirical survey. These Local Government areas are selected based
on the high level of involvement in agriculture and agricultural exposure. They are regarded as the
major center for agricultural businesses in Ekiti state. Hence, these local governments are recognized
for their potentials in turning the state into a hub for agribusiness; in addition to this, the criteria for
selection of participants includes but not limited to:
38
High level of concentration on crop production
Ability of respondents to participate in the survey based on their ability to read
contents written in English language and write in English Language
Willingness to partake in survey
Knowledge and Experiences in Agricultural operations in the state
Table 3: Selected Local Government Areas in Ekiti State
No Local communities selected
for empirical survey
(Members of All Farmers
Association).
Number of
participants selected
for quantitative
empirical study
Number of
participants selected
for qualitative
empirical study
1. Ikere 40 3
2. Ikole 40 3
3. Oye 40 3
Total 60 9
Data collection method:
The interview conducted with members of the All Farmers’ Association makes up the
qualitative survey part of this research work. For a successful interview, an interview guard was
prepared which include the following questions:
How will you describe the current state of Agriculture in Ekiti state?
What are the challenges encountered in farm?
What are the aspects of farm production that needs to be addressed?
What are the possible strategies for improving agricultural performance in Ekiti state?
The qualitative research instrument employed in this study is a structured interview which is
determined by the level of farmers interviewed. This semi structured interview involves a formal set
of questions directed to the respondents with responses recorded to be analyzed. Also, as stated
earlier, the quantitative analysis is done using the research instrument (Questionnaire) which was
designed using Likert scale method to answer specific questions in line with the aim of the empirical
study. The use of questionnaires provides efficient process of retrieving information in an identified
sample (Saunders, Lewis and Thornhill, 2019). To arrive at a good end, questionnaire was
administered by the researcher to participants through the help of a research assistant, a PhD candidate
39
at the Federal University Oye- Ekiti (FUOYE). Respondents were therefore given time frame to
answer the questions and responses submitted within the agreed period of time to enhance quick and
easy analysis.
Method of data analysis:
Based on the above discussions, the quantitative research data analysis consists of descriptive
statistic techniques. Also the use of Microsoft excel spreadsheet was employed for analysis and the
interpretation of data. While analysis of the information derive from the interview were also
presented. As stated earlier, the instrument of the qualitative research is a structured interview using
interview guide questions and recordings of information received.
Limitation of research:
Due to several contingencies, there are probabilities that a research study will encounter some
flaws and shortcomings, hence one of the shortcomings encountered during the course of this research
are mostly locating, introduction and explaining the purpose of the research to participants for them
to be able understand and be willing to contribute as much as they based on their experience and
knowledge of the subject of study. not only this, the study also encounter shortcoming in getting the
participants that are literates and can answer the questionnaire in English language and to some, there
was the help to interpret the questions to them in their local dialect for them to understand in order to
meet up with period scheduled for the empirical study. Also, the illiterate nature of some of the
respondents deprived the researcher from conducting an internet survey, hence, the need for a research
assistant on ground. However, with commitment and tenacity, these challenges where managed as
much as possible hence cooperation from participants was recorded. Also there was the unavailability
of statistical data was a challenge to this research as conflicting reports of cocoa yield annually was
made available.
2.2. Analysis of Research performance of cocoa supply chain using in Ekiti state
As stated earlier, earlier the purpose of this research is to investigate the possibilities for
turning Ekiti state into a hub of Agribusiness in Nigeria. Hence, the study seeks to find answers to
the following question:
What is the current situation of farmers in Ekiti state?
What strategy can be employed towards improvement of agriculture in Ekiti state?
What strategy can be employed towards making Ekiti a hub for Agribusiness?
To achieve the said purpose as explained above, it is important to hear the opinions of farmers
and expert in the agriculture field in Ekiti state, hence their commitment and contributions in the
survey was ensured by verbal agreement. Therefore, the quantitative research was carried out using
40
survey instrument (questionnaire) which was distributed by physically by the research assistants
across the three local governments under study. The questionnaire contains the following:
Background information on respondents participating in the study
Appraisal of Agribusiness in the case study
Assessment of farming equipment used in the study area
Assessment of government strategies to improve agriculture in the study area
The questionnaire which was designed to seek information from the farmers in the study area
based on the above assessments becomes relevant for determining the current state of the farming in
the Ekiti. It includes information about the:
1. Gender of respondent
2. Age of respondents
3. Years of experience and operation as a farmer
4. The category of farm land
5. Type of crop farmed
6. Output of farm products harvested per season (6 months)
7. Description of farming technique and labor process
8. Farmers’ association and others.
With the discussion so far, the analysis of the research result is presented with descriptive
statistical means, discussion and explanatory forms of the result is also done for adequate
understanding of the research outcome.
2.3. Quantitative analysis of respondents from Farmers in Ekiti state
Considering the fact farming is not peculiar to a particular gender in the society, it becomes
important for the survey to inquire about the percentage of each gender that is involved in agricultural
activities in Nigeria. To this effect, figure 2 below shows the gender of the respondents selected for
this survey.
Figure 2: Analysis of gender of respondents (Source: author, 2021)
Ikere
Ikole
Oye
0
20
40
60
MaleFemale
46
4
34
4
30
2 Ikere
Ikole
Oye
41
Result from figure shows that majority of the total respondents are male while the female
population constitutes below average of the total respondents. This indicates that majority of the
farmers in Ekiti state are run by men. However, as stated in the early part of this study, Agricultural
activities are regarded as jobs meant for aged-individuals in the society. This spurred the survey to
inquire about the age of respondents that participated in this survey. Hence, figure 3 below focuses
on the age of respondents selected for the survey.
Figure 3: Analysis of age of respondents (Source: author, 2021)
From figure above, the outcome of the age distribution shows that majority of the respondents
are above 50 years of age. This is an indication that majority of the land owners who have farms are
olds, therefore, this shows the lack of involvement of the new generation in owing farmlands. This
however, does not mean the young generations are not interested in farming but the few ones that are
interested have no access to land and other farming equipment. Hence, it becomes a threat to
Agribusiness in Ekiti state.
2
9
11
20
5
7
13
20
34
9
17
0
5
10
15
20
25
Below 30 yrs 30-40 years 41-50 yrs 51 yrs and above
Ikere
Ikole
Oye
42
Figure 4: Analysis of years of experience of respondents (Source: author, 2021)
Figure above which shows the result of the years of experience of the respondents selected for
this research shows that farmers with about 30years experience makes up more than half of the entire
population of the respondents. This is an indication that majority of these respondents learnt the little
knowledge of farming that they have today from their parents and people around them at a tender
age. This also implies that the methods they employed in their farming are old. Hence, given the fact
that majority of the farms in the area of study are at least 30years old, their experience can be exploited
through the help and services of the extension workers, compliment it with modern and contemporary
methods in order to achieve a better result.
Figure 5: Analysis of the category of farm scale (Source: Author, 2021)
10.8%
30.8%
50.4%
15 years
20 years
30 years and above
16
30
6
13
23
4
15
6
4
0
5
10
15
20
25
30
35
Small scale Medium scale Large scale
Ikere
Ikole
Oye
43
As stated earlier in the body of literature, the size of land available for are regarded as medium
farmers to farm determines the category of farming they engage in. therefore, 51.7 percent of the total
respondents indicate that they could categorize themselves as medium scale farmers. Based on this
research, any farmer whose farmland is above 5 acres and below 10 acres are regarded as medium
scale farmers.36.7 percent of the farmers engage in small scale farming. These are farmers with
farmlands that are below 5 acres while the remaining 11.6 percent of the have above 10 acres of
farmland which places them at the category of large scale farming. However, as stated in the body of
literature, there are adequate land ready to be farmed in Ekiti state but insecurity among many other
factors have become a major challenge for the farmers from going to these farms. Hence, the little
secured lands are been used for farming annually.
Figure 6: Analysis of the type of crops farmed (Source: Author, 2021)
Figure above shows the response from the respondents on the types of crops farmed in the
three local governments of Ekiti state under study. Majority of the respondents indicated that Tuber
which is mostly yam and cassava as well as Cereal which is mostly corn, beans, rice and so on are
the type of crops they farmed most. This however, does not mean they do not farm other type of
crops, but as shown in the figure above, vegetable and fruits takes the lowest percentage.
35%
12%18%
35% Cereal
Fruits
Vegetable
Tuber
44
Figure 7: Analysis on the availability of labour (Source: Author, 2021)
Figure above shows that majority of the respondents agree that there are available labor that
are ready to work as labourers in Ekiti state. This is an indication that if agriculture is to improve in
Ekiti state, labor might not be a problem for the promotion of agribusiness in the state.
Figure 8: Analysis of age range of individuals ready to work as labor (Source: Author, 2021)
Figure above shows that majority of the labours that are ready to work in the three local
government of Ekiti state selected for this study are within the age range of 30years and below. This
is an indication that the younger generation are ready to work to improve the agribusiness in Ekiti
state. However, the availability of these individuals to work does not mean they have passion for
agriculture, but majority of them are interested to work as labourers in order to put food on their tables
and attend to their needs. Nevertheless, their willingness to work is an indication that energetic labor
will never be an issue if agriculture in Ekiti is improved.
Nevertheless, it has be proven from the early parts of the work that farmers association has
great ways of enlightening the farmers and it also serve as an avenue where farmers meet and share
84%
36%
Yes
No
63%40%
17%
Below 30 years
30-40 years
41 years and above
45
experiences together. To this effect, figure 9 below shows the percentage of farmers that belong to
farmers’ association.
Figure 9: Analysis of farmers that belong to farmers’ association (Source: Author, 2021)
Figure above shows the response from all the respondents when asked if they belong to
farmer’s association. They all answered in affirmative. This is due to the promises made by past
governments to assist farmers in the state. It is therefore learnt through the process of this research
that the help can only come through the farmers’ association.
Table 4; Question 1: Analysis of the rate of performance of farming in terms of business success.
NR. PERCENTAGE DISTRIBUTION INTERPRETATION
VW W N S VS
1.1
Is business
environment
convenient or
friendly
34.2 45.3 13.1 8.4 2.0 The response of majority of the
respondents (79%) shows that
business environment in their
locality is not friendly or
convenient for them. This is due to
many reasons which include thee
price the sell their farm products in
the market which is relatively low
to the amount of capital, time and
efforts put to achieve and get good
results from their farms.
1.2
Is the
business
35.0 43.4 14.2 6.1 1.3 Based on the fact that majority of
the respondents did not see the
business environment as friendly,
120
00
20
40
60
80
100
120
140
Yes No
frequency
46
environment
harsh or rigid
majority of the total respondents
assert that the business
environment is harsh to them.
1.3
is
government
or private
support
encouraging
32.3 39.2 20.2 8.3 1.1 The respondents considered the
support from the government and
private organization towards
making the business environment
more friendly as poor. This came as
a result of the failed promises by
the government to improve the
agribusiness in the state. Therefore,
majority of the respondents, (72%)
of the respondents said they don’t
get enough encouragement from
either.
Table 5; Question 2: Analysis of the respondents educational qualification
NR
PERCENTAGE
DISTRIBUTION
INTERPRETATION
VW W N S VS
2.1
Academic
knowledge
17.8 22.0 - 35.2 25.0 The response of the total
respondents concerning their
educational background, is an
indication that all the respondents
have been within the walls of
formal education in their lives,
hence they possess at least the
Primary School Leaving
Certificate (PSLC).
2.2
Primary
school
education
only
- - - - 100.0 The response of the respondents
here if an attestation that they all
possess the PSLC. However, while
formal education is not a perquisite
47
for being a farmer in Ekiti state, it
has added an advantage for the
farmers in their operations and
have also helped them in the
farmers’ association even though
information are not communicated
in English language but in their
native language.
2.3
Secondary
school level
17.8 - - - 82.2 Despite the academic knowledge of
the respondents, their response
here shows that majority of the
respondents have passed through
the secondary education while only
17.8 percent of the total
respondents have not.
2.4 Tertiary
Institution
35.5 46.7 - - 17.8 Also, the response from the total
respondents here also indicates that
only few of the respondents have
tertiary education experience.
Table 6; Question 3: Analysis on the description of market for farm produce
NR
PERCENTAGE
DISTRIBUTION
INTERPRETATION
VW W N S VS
3.1
Available to
local
market
(villages and
clans)
17.0 12.3 12.1 40.2 18.4 More than half of the respondents
said that their goods are available
to their local markets. This can
easily be linked to the fact that
many of them do not have the
means to get them to a bigger
market.
48
3.2
To region
market
( cities,
townships )
31.5 37.4 18.5 12.2 1.2 The deficit in the supply chain is
also obvious as 69% of the
respondents said their produce do
not get to regional markets. Only
few farmers with means and
connection get their produce to
these types of market.
3.3
Supermarkets 40.2 43.6 13.0 3.2 - More than 80% of the respondents
said their produce almost never
reach the desired big markets as
they have no means of getting them
there without intervention from the
government and private
organizations.
Table 7; Question 4: Analysis of the effectiveness of the collaboration between government and
the farmers
NR
PERCENTAGE
DISTRIBUTION
INTERPRETATION
VW W N S VS
4.1
Is there
government
intervention
regarding
farming cocoa
in
Nigeria?
37.0 40.0 20.0 3.0 - As regards government
intervention regarding cocoa
farming in Nigeria, almost 80% of
the respondents said there had been
no real intervention from the
government, but expect things to
change in the near future
4.2
Are there
provision of
fertilizers,
improved
35.2 41.4 16.1 5.0 2.3 Many of the respondents (almost
77%) also said they have no access
to incentives, fertilizers and
seedlings with just a few (7.3%)
saying they have access to them.
Again, without these things, the
49
seedling and
cash incentive
to boost
production?
level of production is bound to be
way too low.
4.3
Is there a
provision for
export of farm
Produce?
32.4 39.6 21.6 6.4 - In response to the question of if
there is a provision for export of
farm produce by the government,
many of the respondents clearly
said they do it on their own or by
partnering with others to export in
bulk.
Table 8: Question 5: Analysis of availability of infrastructure
NR
PERCENTAGE
DISTRIBUTION
INTERPRETATION
VW W N S VS
5.1
Is there good
road from
farm
community to
other towns
48.5 43.7 7.8 - - A large chunk of the respondents
said there are no good roads from
their farms to towns and this
greatly affects the distribution of
the products. This is due to the fact
that most of the farm settlements
are in the rural settlements and the
urban settlements are the
government’s target for
development
5.2
Is there
electricity in
the farm
community
54.6 45.4 - - - Keeping in tune with the obvious
infrastructural deficit in most parts
of the country-electricity supply
being a major part, all the
respondents said they have no
access to electricity supply in their
farms.
50
5.3
Is there good
pipe borne/
irrigation
42.0 45.3 10.7 2.0 - More than 90% of the farmers said
they have no access to pipe borne
water/irrigation supply system and
so have to make use of manual
means to supply water to their
crops. These manual systems are
not always enough and they lead to
reduction in crop yield.
5.4 Is
communicatio
n system good
( internet
network and
telecommunic
ation signal )
35.3 44.5 15.7 4.5 - Most respondents said they do not
have access to good
communication system which in a
way inhibits their reach in terms of
marketing and supplying their
products.
Table 9, Question 6: Analysis of availability of modern equipment for easy farming
NR
PERCENTAGE
DISTRIBUTION
INTERPRETATION
VW W N S VS
6.1
There is
provision for
tractor
/bulldozer?
43.5 50.2 5.2 1.1 - More than 90% of the respondents
insisted that there is no provision
for tractors or bulldozers by the
government. They also said they do
not even have the means to rent the
ones that are scantily available for
rent in their locations.
6.2
I use multi-
Crop
harvester to
harvest my
farm produce
51.3 46.5 2.2 - - In response to the question of using
multi-crop harvesters, almost all of
them said they do not use them with
a lot of them not even knowing
what and how they look like.
51
6.3
I use
broadcast
spreader for
sowing and
fertilizing my
cocoa
seedling
50.0 47.0 3.0 - - 97% percent of the respondents
also said they do not use broadcast
spreader for any activity it entails
on their farms with many not
knowing they even exist. Again,
this apparent loss of touch with
advancement in technology in the
agricultural sector does not bode
well for the future of farming in
these locations.
Table 10; Question 7: Analysis of Access to loan
NR
PERCENTAGE
DISTRIBUTION
INTERPRETATION
VW W N S VS
7.1
Is loan from
family and
friends or
personal
savings
2.2
4.6 5.6 38.7 48.9 Most respondent tend to use their
personal savings for their farm
work, or loans from family
members and friends which in most
cases are not always much. This is
an indication that lack of capital
plays a huge role in the dearth of
farming generally in the locations
accessed.
7.2
Is loan
collected from
government
and is it easy
to access loan
from
government
35.3 45.2 15.2 4.3 - According to 80 percent of the total
respondents attests that loans are
not easily accessible to be collected
from the government. Considering
the huge capital needed to run the
cocoa farm, government’s
intervention through loans and
grants is greatly required.
52
7.3
Is Loan from
financial
institution
(Bank or
lending house)
15.5 17.5 5.5 30.5 31.0 Above half of the total respondents
confirmed that farmers get loans
from financial institutions i.e.
commercial banks and lending
houses.
7.4 Is loan from
cooperative
organization
5.6 8.3 4.5 35.0 46.6 Majority of the total respondents
also said they take loans from
different cooperative societies
which they belong to, as they are
the most accessible means of
getting loans.
Table 11; Question 8: Assistance from private organizations
NR
PERCENTAGE
DISTRIBUTION
INTERPRETATION
VW W N S VS
8.1
Is there any
form of
assistance
from any
private
organisation
regarding
your farming?
43.3 31.7 15.0 10.0 - A very low percentage (10%) of the
total respondents assert that they
have gotten some form of
assistance from private
organization. This implies that
even private support for farmers in
the Ekiti state is very poor
compared to the number of private
organization in the state.
8.2
Is the
assistance
provided by
private
organisation
readily
accessible?
50.2 45.3 4.5 - - Also, majority of the total
respondents confirmed that
assistance from the private
organizations are not easily
accessible and in most case, they
are been politicized. Hence, any
farmer who is not actively involved
53
in politics might not have access to
assistance from private
organizations. Organizations are
not easily accessible, a and in some
cases, they mostly have to lobby
before being considered for such
schemes.
8.3
is the
assistance
provided in
form of loan
or
grant?
15.0 20.2 15.3 30.2 20.3 Half of the respondents revealed
that the most common form of
assistance rendered is loans and
grants. Also, more than one-third
of the respondents said the form of
assistance is not capital related.
8.4 Is the loan or
grant
returnable?
- - 10.3 33.7 56.0 Almost all respondents (90%) said
the loans and grants are returnable
with interest.
Table 12; Question 9: Analysis of the investment in infrastructural supports facilities in your
community such as roads, irrigation etc.
NR
PERCENTAGE
DISTRIBUTION
INTERPRETATION
VW W N S VS
9.1
Is there good
roads that is
easily
accessible to
the farmland?
69.3 30.7 - - - All the respondents responded that
there are no good accessible roads
leading to the farms. This explains
the reason why many people who
would have love to farm lost
interest in the job. The little farmers
that are still farm faces this
problem as most of their farm
produce spoils before getting to the
market as a result of delay in
getting them to the market.
54
9.2
Is there
provision for
irrigation by
government
In your
farming
environment?
66.0 34.0 - - - All respondents r no help in the
form of irrigation from the
government to farmers in Ekiti
state. This coincides with the
previous response that the
government have not done much in
supporting agriculture in the state.
9.3
Is there a
provision for
an available
market to sell
your cocoa
farm produce?
52.3 44.5 2.0 1.2 - Most farmers said they have no
specific market to sell their goods
and sell to mostly people that they
have dealings with in the past or
random buyer. This is an indication
that cocoa, being a major cash crop
in the country has no big merchant
in the state and it has negatively
affected the farmers’ morale about
agriculture.
9.4 Is there a
provision of
facilities for
cocoa storage/
processing/
preservation?
38.3 40.6 15.1 6.0 - Majority of the respondents said
they do not have storage facilities
either privately owned or by the
government. This greatly leads to
spoilage of the harvested farm
produce.
Table 13; Question 10: Analysis on the Ease of farming business environment in terms access
to land, improved seedlings, fertilizers etc.
NR
PERCENTAGE
DISTRIBUTION
INTERPRETATION
VW W N S VS
10.1
Is there
provision for
land and is it
accessible?
- 2.7 59.4 38.3 The opinion of the respondents
concerning the availability of lands
for agriculture shows that there are
lands available for farming. These
55
lands mostly belong to previous
farmers, who have died and their
children and families have
inherited the lands. Also, there are
abandoned lands by the
governments which the farmers
believe are good for short time
farming.
10.2
Is the land
leased or
purchased?
20.2 15.4 5.0 23.8 35.6 The responses from the
respondents show that the available
lands are either leased out to them
by the original owners or sold out
to them depending on the kind of
agriculture they want to engage in.
10.3
Are the
seedlings
available
within your
environment?
45.7 38.5 14.4 1.4 - A clear majority of the respondents
said the seedlings are not readily
available in their environment and
they have to go through a lot of
hassle to buy them.
10.4 The
fertilizers,
manure,
pesticide etc.
are available
at your farm
environment?
46.8 43.8 7.5 1.9 - The fertilizers and other farm
improvement products are not
readily available in the
environments of the respondents as
indicated in their response, with
just 2% saying otherwise.
56
Table 14; Question 11: Analysis on Research initiatives to improve the farming through
development of resistant seeding to disease/ pest and replanting in the state (eg. The Cocoa
Research Institute of Nigeria –CRIN)
NR
PERCENTAGE
DISTRIBUTION
INTERPRETATION
VW W N S VS
11.1
Is there a
provision
for
developmen
t of cocoa
seeding in
your area?
25.4 28.4 44.2 2.0 - More than 50% of the respondents said
there no provision for the development of
cocoa seedlings in their location that they
are aware of, almost 45% said were
neutral and said they were not sure if such
program exists or not and just 2% said
they exist.
11.2
Is there a
centre for
agricultural
research and
extension?
To boost
productivity
?
28.3 25.1 46.4 - - More than half (53%) of the respondents
also said there is no center for agricultural
research in their area, while 46 percent
said they do not know if they exist or not.
This is an indication that government and
private owned organizations that could
have help agriculture in Ekiti state by
establishing research institutes have
diverted their attention into other thing.
Thereby leaving agriculture in the state
unattended to.
11.3
Is there an
agency for
Cocoa
research,
Communica
tion and
information
centre
32.3 30.1 35.0 2.6 - In response to the question about the
existence of an agency for cocoa research,
62% of the respondents said there are
none, 2.6% said they know of one and
35% said they cannot if there is an agency
like that or not. This shows that if such an
agency exists, then they have not taken
enough farmers on board.
57
Table 15; Question 12: Supports for farmer’s incentives and farm extension workers
NR
PERCENTAGE
DISTRIBUTION
INTERPRETATION
VW W N S VS
12.1
Is there
a specific
incentive for
farmers and
farm
extension
workers?
44.4 30.6 6.0 19.0 - In response to the question about
provision of incentives to the
farmers or farm workers, almost
20% of the respondents said there
are some forms of incentives
coming in through the farmers’
association they belong too.
However, they believe that these
incentives are coming as a result of
their monthly contribution made to
help one another in the time of
problem. But majority of the
respondents said there are no
incentives because they do not see
their contribution as incentives but
rather a help they rendered for one
another
12.2
Is there any
additional
support from
NGOs for
farm
extension
workers?
38.6 48.8 9.2 3.4 - More than 85% of the respondents
bemoan the lack of support from
NGOs and said most NGOs expect
the farmers to pay a large sum of
money before they can help the
farmers.
12.3
There is a
special
remuneration
and incentive
49.4 44.6 6.0 - - More than 90% of the respondents
said apart from the normal usual
incentives that there are no special
remuneration package or
incentives for the workers.
58
for farm
extension
workers
Table 16; Question 13: Analysis of the form of Incentive does farmers/ farm extension workers
enjoy?
NR
PERCENTAGE
DISTRIBUTION
INTERPRETATION
VW W N S VS
13.1
Length of
tenure: The
longer you
work on the
farm, the
higher your
income
25.0 27.0 2.0 39.0 7.0 Forty six percent of the total
respondents replied that despite the
little capital they have, they pay
their workers more if they work for
more hours, while more than half
(52%) said they only agree on the
amount to pay based on the amount
of acres to be worked on.
13.2
Equity
accumulation:
farmer is
given specific
Seedling and
land to plant
and harvest
with the
Equipment
freely
45.0 55.0 - - - All the respondents said they have
to buy the seedlings on their own
and at great cost. Also, they have to
hire equipment from private
individuals and they charge more
should know exceed the agreed
duration for the usage of the
equipment.
13.3
Physical
production:
the more you
produce, the
more your
incentives
20.4 36.0 3.6 40.0 - Around 40% of the respondents
said they incentivize their workers
if they produce more as way of
encouraging them while more than
half (56%) said they have fixed
wages that they give to farmers and
they are binded by that agreement.
59
Table 17; Question 14: Policies on price control and information dissemination to farmers
beneficial to farmers
NR
PERCENTAGE
DISTRIBUTION
INTERPRETATION
VW W N S VS
14.1
There is a law
that controls
/regulate
prices of
seedlings and
farm tools
60.0 40.0 - - - All the respondents were
affirmative with their answer that
there are no laws that control the
prices of seedlings and farm tools.
This is an indication that sellers of
these seedlings and farm tools sell
at different prices and this is very
bad for the progress of agriculture
in the state.
14.2
There is a
forum for the
dissemination
of information
to farmers to
keep them
updated on
current price
change
62.3 34.7 3.0 - - Again, in response to the question
about a forum for dissemination of
information to farmers as regards
price change and other things,
almost all of the respondents (97%)
said there is no forum for that.
Rather, they only get information
about the current price from co-
farmers who came back from the
market to acquire some.
14.3
The
government
are the ones
regulating the
prices of farm
goods/
services
52.7 41.3 6.0 - - From the response gotten from the
farmers as regard the government
being in charge of regulating the
prices of farm produce and
services, more than 90% said the
prices are not government
controlled. This is an indication
that the government have shown
less concern about the well-being
of farmers in the state so far.
60
14.4 There is no
price control
anywhere,
everyone sells
at whatever
rate they want
- - 5.5 30.8 63.7 More than 90% of the respondents
said prices are determined by them
and other forces and not by any
agency or government board.
14.5 Price control
is regulated by
season and
consumer
demand
3.0 8.0 12.0 28.0 49.0 Price being influenced by season
and customer demand is strongly
reflected in the answers of the
respondents, as more than 80% said
it does influence it. This is an
indication that price of farm
commodities are likely to be on the
high side at planting season and
becomes lesser at harvest season.
Table 18; Question 15: Development of efforts at collaborative planning for improvement of
variety methods of farming in the state for better output (state and farmer’s association)
NR
PERCENTAGE
DISTRIBUTION
INTERPRETATION
VW W N S VS
15.1
There are
efforts to
collaborate
and improve
methods of
farming in
Ekiti state
20.3 22.4 35.8 18.2 3.3 Almost 43% of the respondents
believe there are no efforts being
made to improve the obsolete
methods of farming in the state,
35% were neutral in their own
analysis and just a little above 20%
said they know there have been
efforts made in that regard because
there are promises by politicians to
improve the state if they are voted
into office.
61
15.2
There is a
forum where
farmers meet
and are
enlightened
on the best
methods of
farming
18.4 23.0 10.6 40.5 7.5 Almost half of the respondents
(48%) said they have a forum
where they meet and discuss about
the best farm practices with just a
lesser percentage (41%) saying
they do not belong to any forum.
This just implies that a huge chunk
of the farmers are not being carried
along in the process because they
believe that the farmers’
association they belong to is not the
right place for that.
15.3
There is a
monthly/week
ly meeting of
farmers in my
area that aims
to diversify
different
methods of
farming that is
geared
towards
productivity.
12.8 16.9 8.7 44.4 17.2 In response to the question of if the
farmers hold regular meetings that
are aimed at increasing their
outputs, more than 60% of them
said they do and it has been a long
time practice for them. Although,
they meet at the association level to
engage in their monthly
contributions and help one another,
but they have not received any
external body to tutor them on the
improved methods of agriculture.
2.4. Qualitative Research Analysis of respondents who are farmers
The qualitative research analysis that employs the use of interview to achieve the purpose of
this research opens the way for the researcher to hear the opinion of the existing farmers in Ekiti state.
The opinions of these farmers are presented in the table below; the nine (9) respondents, interviewed
at the three local governments of Ekiti state under study are all male and have been involved in
farming for a minimum of 7 years; coupled with this fact, these respondents all belongs to the All
Farmer’s Association. The respondents are tagged “interviewee A, B, C, D, E, F, G, H, and I”
respectively. The opinions of the respondents retrieved from the interviewed are centered on the
current situation analysis, identification of hindrances, remedies to improvement of improvement of
62
performance of agriculture towards a sustainable growth of agribusiness in Ekiti state. The analysis
is summarized extracting key points from the interview as tabled below.
Table 19: Analysis of interview
Themes Description
Analysis of current performance of
Agriculture
Decline of Agriculture (Farming) in the state
Low yield of farm production
Decline in expansion and investment in
Agriculture
Decline in the level of available labor
Decline in interest rate
Weak information on technical inputs,
incentives to farmers etc.
Lack of social amenities
Lack of security
Inappropriate use of agrochemical for pest in
disease control
Technical relationship between input and
output functions is weak
Identification of the hindrances to
improvement the improvement of Agriculture
Poor investment in Agriculture and research
institute in the state
Inadequate man-power and funding from the
state government
Inadequate involvement of private sector in
research and extension services
Lack of collaboration between the
government and private sector for investment
in Agriculture development, and other
agricultural services
Inability to expand farmland due to private
ownership of land
Lack of basic infrastructure such as roads,
irrigation, agrochemicals etc.
63
Lack of Social amenities such as electricity,
pipe-borne water, network etc.
Lack of security against the farmers and
herders clash
Age of farmers and inclination to the use of
traditional methods
Climates change and over dependence on the
natural weather.
Ineffective coordination of the research
institute and markets associations
Suggested remedial procedures
Acquisition of adequate and reliable data on
Agriculture in Ekiti state and in Nigeria at
large to ascertain challenges and right
strategies to alleviation of the highlighted
problems faced by farmers
Adequate and resolute investment in
Agriculture
Investment in infrastructures for ease of
Agriculture
Effective policies for access to credits to
improve agriculture by farmers
Seek private sector investment and
collaboration in agriculture to compliment
government’s efforts through investment and
programs
Equipment of research agency for capacity
building and effective distribution of cocoa
improved seedlings
Adequate and favorable policies towards land
acquisition for expansion of Agriculture in
the state
Educating the youths and involving youths
through seminars and workshops with
necessary support by government and
64
collaboration with private entity about their
commitment into Agriculture
More budgetary allocation to state agency
and research institutes to function better
Measures to curb security concerns in farm
environment
Policies to settle the dispute between farmers
and herders in the state
The opinions of the farmers through the survey carried out on the sustainable growth of
agribusiness in Ekiti state revealed that there is a need for serious measures to be taken if Ekiti state
can turn to a hub of agribusiness in Nigeria. These measures are numerous because currently,
agriculture is currently experiencing a downslope in the country. These measures include massive
campaigns on the necessity of citizens, especially the youths who still have the energy to work hard,
to embrace agriculture as it has the potential of alleviating poverty in the society and boosting the
country’s economy while also returning the country lost glory. Also, there is a need for technological
and technical assistance in production through both private and public entities, re-structuring of the
market coordination and association to improve farmers return on investment in cocoa.
Also, there is a need to invest in the local processing of cocoa products as this will attracts
additional benefits to the economy from various inputs and services required for its production.
Sowumi; Famuyiwa; Oluyole; Aroyeun and Obasoro (2019) states that some contributory factors to
reduction in farm production in Nigeria has include the inability of government to provide subsidies
and inputs to farmers, poor access to roads for major producing states, education etc. therefore, if
agriculture is to be boost the country’s economy and become a major part of the country’s economy,
investment from the government will go a long way into revving the lost glory of agriculture in
Nigeria. To this effect, this study corroborates with Temitope Bolanle Aiyelagbe position that the
Nigerian government could borrow ideas from Ghana, another African country who has proved that
heavy investment can boost the country’s outcome in agriculture.
In summary, this part of this research study has successfully discussed the methods adopted
for the purpose of achieving a good and reliable result in this study. With full focus on the Ekiti state
agribusiness as a case study for this study, the mixed method of research which include the
quantitative and qualitative research methods prove effective for the study. Quantitatively,
questionnaire was as a technique to investigate the current state of agribusiness in Ekiti state as well
as to investigate the possible way to improve the agricultural sector as proposed by the selected
65
respondents for this study. Same way, the interview was conducted to support the result gathered
from this survey. Therefore, the analysis of the question asked in the survey has also be discussed in
this part of the study. The subsequent part will therefore focus on the PEST and SWOT analysis of
Agribusiness in Nigeria using Ekiti state as a case study.
66
3. PEST AND SWOT ANALYSIS OF PERFORMANCE OF
AGRICULTURE IN EKITI STATE
3.1. PEST analysis for the promotion of Agribusiness in Ekiti State
According to Aguilar, J, (2017) PEST analysis is an analysis that weighs the influence of the
political, economic, social, and technological impact on the object of study (2017). Therefore, the
PEST analysis of this study is concerned with the analysis of the influence of the political, economic,
social and technological impact on Agribusiness in Ekiti state. Therefore, it becomes important to run
a PEST analysis which will enable this study to identify those factors that could impact the
improvement of Agribusiness in Ekiti state now and in the future. To achieve this, the PEST analysis
will be divided into two parts, the first part will focus on the opportunities of the PEST (Political,
Economic, Social and Technological) on the object of study while the second part will focus on the
threat of the PEST on the object of study.
Opportunities
Political factors (P): this examines the extent the political nature of Ekiti state which is the
case study for this research will affect the agribusiness environment in the state. Considering the
nature of Nigeria that run a democratic system of government, the change in political power has over
the time affected the policies made for the improvement of agriculture in the country. This is due to
the fact that since the country gained her independence in 1960, the country has gone through
incessant regime changes by alternating between military and civilian rule. This has however made
it very difficult for policies made to work because every government came in with its own policy and
debunk the previous policies made by the past regimes. Also, the process of making decision in the
country has caused a lot of downslope in the improvement of agricultural sector in the country. For
instance, Nigeria has three major arms of government which are the Executive, Judiciary, and
Legislature. While the legislative arm of government consists of the National Assembly, the
Executive arm is made up of the President, executive arm of the National 35 Assembly, and the
highest judicial arm of government is the Supreme Court (CIA, 2016).
With this as a background, the efficiency of government institutions in making policies that
are capable of improving the agribusiness in Ekiti state will definitely encourage access to supports
and motivations that farmers in the state needed. Also, better attitude from the government towards
67
agriculture in Ekiti state, in the form of active and effective strategies as well as alliance accomplices
will upgrade improvement in the performance of agriculture in Ekiti state.
Economic factors (E): the sole reliance of Nigeria on the oil sector is one of the many factors
affecting the economy of the country today. Adeshina, Adeoje (2016) confirms that the Nigeria oil
sector remain the dominant sector of the economy, and despite the good result gotten from this sector
in boosting the country’s economy, the structural changes needed for broad-based development have
not been overly attainable. Hence, the government needs to be active in making efficient decisions
that will support and motivates the farmers in the state. Because, better attitude from the state
government in the form of effective strategies and alliance accomplices will definitely upgrade the
agribusiness in Ekiti state and can also serve as another source of income for the state.
Social factors (S): this aspect of the PEST analysis covers the entire aspect of life of the
people (age, sex, number, natural increase, birth rate, mortality, population migration), level of
education and social groups among the population, cultural beliefs and values (traditions, customs,
beliefs, religion) , culture), the individual needs of people (career aspiration, way of spending free
time, etc.) according to World Bank statistics (2015), Nigeria is a class society where titles, age,
wealth and gender takes centre stage in how people are treated or addressed. Therefore, Nigerian get
its labor forces from her monumental population who hustling for employment in the oil and other
functioning sectors in the country. Therefore, an improvement in agribusiness in Ekiti state will
provide more job opportunities for the population and will also bring about rapid social development
in the state. Developments like good roads, electricity, pipe-borne water, and so on which are basic
things needed for agriculture to triumph in Ekiti state.
Technological factors (T): this aspect of the PEST analysis focuses on the introduction of
advanced and new technology in the agriculture sector. This includes the availability and access to
modern farming tools, tractors, storage facilities, communication network, and so on. But
unfortunately, Nigeria relies on foreign countries/companies on technology and its primary
technological interest lies in the aspect of telecommunications, infrastructures, health care, and
defence. Consequently, CNBC Africa (2015) avers that this dependence offers scouter a chance to
investigate Nigeria's technological potential by taking advantage of the gigantic market specialty.
Along these lines, government support through sufficient strategies that will birth great innovation
that will improve the agribusiness in the state are required.
IDENTIFIED THREATS
Political factor (P): as stated earlier, Nigerian government has given chances to unnecessary
space in the decision making process which is seriously affecting the policies needed for the
improvement needed in the agriculture sector of the country. Therefore, it the political nature of the
68
country becomes a threat to the survival of the agribusiness in Ekiti state even if a good strategy is
proposed. This is because, the political environment of the country is filled up with corrupt
individuals, hence, the fear of these politicians, diverting any fund released for the improvement of
the agribusiness and the betterment of farmers’ lives into their pocket becomes a major concern. In a
similar vein, the weak policies made which have led to the decline of other sectors in the country
becomes a threat because these same weak policies still exist and as long as they are not eradicated,
they proffer a great threat to the survival of any other sector like the agriculture sector that wants to
rise.
Economic factor (E): economically, the unavailability of experts in the agribusiness is
another threat identified that could hinder the improvement of agribusiness in the state. From the
information gotten from the respondents, majority of the farmers in Ekiti only practice the old way
of farming which they believe is the best option because it is definitely working for them. Therefore,
should the government invest a large capital into these people, this can weaken the economy of the
state.
Social factor (S): with the improvement of the agribusiness underway, the social lives of the
youth which we are proposing to work as labor becomes an area of concern. As seen in the body of
literature, it is widely believed that farming is for the poor and people living in the rural areas, majority
of the unemployed youths who despite their status still managed to live expensive lifestyles might
become a great threat to agriculture because it might take time for these youths to adapt to the
agriculture life. A time that is not available should agribusiness in Ekiti state be improved. Also, the
lack of adequate social amenities in the rural settlements where farming is being practiced very well
becomes a threat to agribusiness in Ekiti state.
Technological factors (T): also technological factor can also be a threat to agribusiness in
Ekiti state. This is due to the fact that the urban areas are target for most of the developments in Ekiti
state which has led the rural areas underdeveloped despite being the hub for agricultural activities in
the state.
To promote agribusiness in Ekiti state, it becomes relevant to check the prospective strength,
weaknesses, opportunities and threats that are implied in such business like this. Henceforth, SWOT
analysis is a device utilized to help assess the possibility of agribusiness in Ekiti state through the
Strength, Weaknesses, Opportunities, and Threats (SWOT). Nouri et al., (2018) asserts that
Examining and evaluating these factors will help gain insights into the past and think of possible
solutions to existing potential problems either for an existing business like this current one and a new.
69
3.2. SWOT analysis of initiatives towards improvement of Agriculture towards
sustainable agribusiness in Ekiti state.
Table 20: Swot Analysis
No. STRENGTHS Score
(0-5)
No. THREATS Score
(0-5)
1. Fertile/arable grounds can
make crops flourish well.
5 1. Crude or peasant agricultural
practice
5
2. Strong Banking and Financial
sector.
5 2. Backwardness in the use of
technological advancement
5
3. A favourable climate
appropriation of both dry and
rain seasons offering
opportunities to two
distinctive growing seasons
with various harvests.
3 3. Lack of loan/credit facilities
to farmers/high interest rates
5
4. Easy arrangement of medium
and long term loans
3 4. Discouragement in
agriculture due to movement
of rural-urban farmers in
search for better
opportunities
4
5. Controlled cash supply 3 5. Low turnout of investors in
the agriculture sector
4
6. Insufficient finance and
capital resources
4
7. Lack of power supply, good
roads, security arrangements
and other infrastructures
3
70
8. Lack of information system,
new technology, and
scientific base
2
No. OPPORTUNITIES Score
(0-5)
THREAT Score
(0-5)
1. Agriculture becoming the
new source of income in Ekiti
state by contributing largely
to the state economy
5 1. Over dependence on the
allocation coming from the
federal level of government
leads to discouragement in
investments of the
agricultural sector
5
2. Reduce over dependence of
the economy on the allocation
coming from the federal level
of government
Reduce corruption
5 2. Very poor commercialization 5
3. Poverty eradication
4 3. Discouragement of youths in
the agricultural sector as
everyone desires to become
rich quickly
5
4. Increase in the value of
foreign trade rates by
significantly decreasing
imports
4 4. Threat of import substitution
impact to the nearby local
markets
3
5. Numerous opportunities
accessible in the banking, tax
assessment, mining, banking
and money, and various
sectors.
4 5. Increasing crimes, frauds,
scams, and corruption
3
6. High population make high
requests for products and
services
4 6. Increasing competitions in
the global markets and
tougher competition globally
3
71
7. Reach the requirements of
food and raw materials of the
rural areas
4 7. Lack of funds, high costs of
doing business, higher
opportunity costs
3
8. More opportunities for
diversification and
ultimately, progressing
economy
4 8. Lower economics of scale
while opting for globalization
2
9. Opportunities for many
investment opportunities for
the local entrepreneurs and
foreign investors
4
10. Capability of increasing
employment opportunities by
over 50%
3
11. Wealth distribution 3
12. Economic and political
updates drives high interest
for products and services
2
13. Reduce corruption 2
Key word: 5= Excellent; 4= Good; 3= Fair; 2= Poor; 1= Very Poor.
Strength: The strength of Agricultural sector in Ekiti ad stated in the Swot analysis above and
as related to this study, are seen in the natural climates as well as fertile and arable lands suitable for
carrying out agricultural activities in the state. With this, agriculture has the potential to improve its
capacity to contribute to the state economy as well as contributing the country’s GDP, Also it can
earn foreign exchange and contributes to the economy and others due to the international market
demands.
Weakness: As reflected in the SWOT analysis, despite the enormous strength in the Ekiti state
agricultural systems, its potentials to contribute to the development of the state is fraught with a
number of factors. Among these factors is the discovery of crude oil in Nigeria, which has diverted
the country’s attention from other sectors such as agricultural sector because of the increased and
quick returns with surplus funds from oil trade; also, there was high rural-urban migration, neglect of
farmers. Another factor is the unstable nature of the government policies regarding the socio-
economic and industrial development which now poses a major hindrance on the agricultural sector.
Also, farmers have also not being encouraged on adding value to their farm produce by way of quality,
72
processing, packaging and marketing; this has made their product not to be able to compete in the
international market. These factors and many others coupled with the use of unskilled labour,
traditional methods of farming as well as the poor usage of agrochemicals and others contributes to
the weakness here. Therefore, these weaknesses have a great impact on the improvement of
agriculture in Ekiti state.
Nevertheless, for the weakness to be managed and increase in the level of sustainable growth
in agribusiness in Ekiti state achieved, it is important for the government to create interest in the
agribusiness and stop the sole reliance on the oil sector by providing support for the agricultural
sector. Also, the problem of unskilled labor can be tackled through the help of farmers’ association
whereby the farmers are exposed to seminars by experts in the agribusiness who will trained young
farmers about the new methods that could be employed into the agribusiness towards achieving a
growth in agribusiness in Nigeria.
Opportunities: Despite the weaknesses highlighted in the SWOT analysis, opportunities
abound for Nigeria to bounce back to a place of reckoning in the agricultural sector. These
opportunities includes but not limited to diverting a percentage of the allocation coming into the state
from the federal government into agriculture, towards creating another source of income for the state.
This will not only be of benefit to the state government, but also be of benefit to the farmers who and
people of the state, while also reducing crime rate in the state.
Threats: as highlighted in the SWOT analysis above, there are several there are several
factors, threatening the improvement of agriculture in Ekiti state. Starting from the climate change
being experienced globally, this has the propensity of enhancing the high incidence of pests and
diseases. This made Nuga (2018) to affirm that the effects of the aforementioned may be more
pronounced as a result of land degradation activities. Also, the insecurity that has led to series of
clashes between the farmers and herders in Nigeria poses a great threat to farmers from carrying out
their farming activities over the fear of being attacked in the farms which are majorly at the
underdeveloped part of the state.
Also, the lack of adequate support by the state government to promote agriculture in the state
poses a great threat to the survival of agriculture in Ekiti state. The available lands that should have
been diverted into farming are too far from the town and the government has failed to lease out these
lands for farmers to use for agricultural purposes. To this effect, overcoming these threats will be a
good way of improving the agricultural system in Ekiti state.
In summary, this part of this research study has successfully analysed the Political, economic,
social and technological factors associated to Agribusiness in Ekiti state. Despite the opportunities
attached to agribusiness in Nigeria as indicated by these factors, it is very difficult to jettison the
potential threats these factors poses to the growth of agribusiness in Nigeria. Hence, it becomes very
73
important that the farmers and government collaborate with private enterprises to lift the agricultural
sector to a higher level. Also, the SWOT analysis examined the strength, weaknesses, opportunities
as well as threat attached to the agribusiness in Ekiti state. Therefore, for agribusiness to be
sustainable in the country it becomes paramount for the state government and every stakeholder
involved in lifting the agribusiness sector to a higher level work together to achieve a common goal.
To this effect, the subsequent chapter will focus on the strategies proposed by this study
towards the possibilities of sustainable agribusiness in Ekiti state as well as the conclusion.
74
4. POSSIBILITIES FOR THE SUSTAINABLE GROWTH OF
AGRIBUSINESS IN EKITI STATE
Throughout the course of this research, it has become evident that there seem not to be a
strategy for the improvement sustainable growth of agribusiness in Nigeria. However, as a case study,
this study will propose suitable possibilities of sustainable growth of agribusiness in Ekiti state. As
explained in the earlier part of this study, agricultural practices are mostly carried out in the rural
areas of Ekiti state and in order to achieve a sustainable growth of agribusiness in the state, rural
development needs to be put into consideration. The development of rural areas relates not
exclusively to a supported expansion in the degree of production and inhabitants of rural areas,
including farmers, and a supported improvement in their prosperity, showed by expanding per capita
pay and way of life, yet additionally prompts a supported physical, social and financial improvement
of rural communities. Therefore, the possibilities of achieving sustainable growth of agribusiness in
the state, the state government must focus on specific objectives. While the achievement of explicit
farming objectives incorporates the plan of good food, fibers and industrial raw materials, work and
foreign exchange, the destinations of country progression embrace in addition a purposeful
improvement of the other institutional, physical and social establishments in such rural communities.
To this effect, the possibilities of achieving a sustainable agribusiness in Ekiti state require the
adoption of several strategies which includes the increase in the agricultural output which can be
achieved through the following strategies:
1. By expanding the total territory under cultivation
2. By expanding the usefulness of cultivated land
3. By utilizing high yielding varieties of seeds
4. By utilizing irrigation system to bring more land under cultivation
5. By utilizing more manure
6. By expanding the utilization of plant and livestock protection arrangements
7. By embracing multiple cropping, along these lines expanding the total area cultivated.
In addition, cottage industries development may be used as a methodology for rural industrialization
The above techniques get its sustenance from the environment and such a procedure thusly
influences the physical, chemical and socio-economic structure of the environment. For example, the
provision of infrastructures in rural areas requires the usage of scenes and various resources. Right
75
when these frameworks are finally developed, they change the actual idea of the climate as well as
the connection between resources just as the stylish and economic worth of the resources.
Also, the PEST and SWOT analysis also points to the lack of adequate funding as one of the
problem facing agriculture in Nigeria today. This is because Agriculture is being treated as a business
by policymakers, and rather it is seen more as a social service. Subsequently, Nwagwu presents that
the issues of agriculture revolves significantly around the issue of an absence of interest in the area,
that it very well may be settled with better joint effort between the private and public organizations
(PPPs) which will permit the gatherings arrange their assets to benefit the area (2019) In his position,
he portrays the PPPs as the connection between the public organizations and private sectors entities
under which the obligation regarding any or the entirety of the mix of planning, financing,
development, the executives and activity of public framework, utilities and different speculations that
were customarily embraced by the public sectors are legally shared and mutually undertaken by both
the public and private sectors, as a rule in relation to the sort of risks each parties can best convey
(Nwangwu, 2013).Hence, there is a need for the public and private organizations to collaborate
together if agribusiness must achieve a sustainable growth in Ekiti state. This made FAO to describe
the PPPs as a formalized association between public establishments and private partners intended to
address reasonable agrarian improvement goals, where the public advantages expected from the
organization are unmistakably characterized, speculation commitments and risks are shared, and
dynamic jobs exist for all parties all through the PPP lifecycle (FAO, 2016).
To this effect, this study believe that if there can be a partnership between the private and
public organizations; there are possibilities that agribusiness in Ekiti state will grow tremendously.
Possible areas for improvement then include:
Provision of services: Government should priorities the provision of certain services
that can aid the sustainable growth of agribusiness in Nigeria. This is because the study believes that
activities like provision of knowledge and skill transfer through trainings and other capacity-building
initiatives and also business networking would be provided. This becomes paramount for the
improvement of agribusiness in the state because majority of the farmers present at the state, lack the
modern knowledge of farming and would love to acquire new knowledge on how to improve their
farming from experts which they stand no chance to afford. Therefore, with funding coming from the
PPPs, such training is now possible and agribusiness in Ekiti state will stand a chance for growth.
Also, the provision of these services is crucial for the transmission of smallholder farmers from
subsistence to commercial agriculture (FAO, 2018). The provision of services additionally helps
upgrade the seriousness of the agricultural sector by adding to the improvement of the economic and
social states of farmers.
76
Provision of infrastructure: There is a need for adequate infrastructure in the
agricultural sector. Therefore government should place emphasis on the provision of infrastructure.
From the study so far, it has been identified that the lack of adequate infrastructure poses great threat
to the growth of sustainable growth of agribusiness in Nigeria. Therefore, the PPPs can help focus on
the provision of adequate infrastructure such as irrigation, agro-processing and storage facilities are
essential components of the agriculture value chain. In fact, the privatization of agriculture has
prompted the failure of farmers to build the necessary infrastructures required for themselves; because
of their high capital use that is required and the improbability that the investors would have the option
to recuperate the venture all through the life expectancy of the infrastructure. In this way, with the
assistance of the public authority and private organizations the cost might be sponsored.
Provision of storage facilities: Government should ensure the provision of adequate
storage facilities that will help in adequate preservation and storage for farm produce against wastage
and misused. This comes because of the way that one of the main considerations that have added to
the issue of agriculture in Nigeria today is the unavailability of storage equipment and facilities.
Nigeria experiences occasional spikes in the costs of foodstuff commonly because of the cyclical
nature of its weather. In fact, food is bountiful during the raining season and afterward as the nation
changes into the dry season, the shortage of food turns into an issue as food costs ascend as creation
eases back down. Also, post-harvest losses are also a perennial occurrence in Nigeria. The present
circumstance applies to most items just as grains. Therefore, storage equipment like silos will go a
long way to preserving agricultural products in Ekiti state, thereby proffering the possibility of
sustainable agribusiness growth in Nigeria because the problems of grains can easily solved by storing
the product including the grains during the harvest season when they are susceptible to waste,
ensuring that they are now available all year round.
Agricultural Markets: Government should ensure the development of market for
farm produce is fundamental for the development of the agricultural sector. It offers inspirations to
private sectors investor to give their resources to agribusiness projects understanding that there is a
clear path to returns for such investment. according to Barreti and Mutambatsere (2018), Another
notable fact is that a market play in a sector with infrequent production like agribusiness, is to help
direct the risks related with solicitation and supply shocks by changing stock when required in like
manner diminishing the value changeability looked by customers and producers. The presentation of
good and working market sector is not probably going to settle every one of the current issues related
with the market for agriculture in Nigeria. Yet, a market like this will go far into demonstrating a road
where farmers can trade their products for cash. This will likewise spur them of putting more in
agriculture since they make certain of where to sell their items whenever. Nonetheless, thinking about
the current economic situation of the state, the governments probably will not have the limit or
77
budgetary order needed to work a promoting of that norm, which will house marketers both inside
and outside the state. In any case, the government can team up with private associations to determine
this issue. Consequently, the government should focus on getting private sectors to ventures across
the whole farming value chain and ought to likewise be liable for setting strategies and guidelines
through its different organs in the area. The government should leave the fixing of expenses to
showcase impacts. Finally endeavors ought to be increased to privatize the ineffectual items trade to
make it more proficient. With this set up, the study accepts that the conceivable outcomes of a
sustainable growth in agribusiness in Ekiti state are very high.
Collaboration with private Partners: Farmers should try and collaborate with
private partners that are ready and willing to assist agribusiness in Nigeria through the help of
equipment of well-treated seedlings. Also, private partners who are vast in knowledge and are willing
to share this knowledge with local farmers will not only be beneficial to farmers but also benefits the
government because the country’s agribusiness will also be improved. Hence, there is a need for the
government to encourage collaboration with private partners in the agricultural sector.
Farmers Association: farmers should ensure that they belong to at least one farmers’
association. This becomes important to the success of the agricultural sector in Nigeria farmers have
the opportunity to deliberate on their experiences and as well can render first-hand assistance to one
another. Also, any help coming from the government or any private organization will be accessed
through the farmers’ association.
78
Conclusion
1. This research as stated earlier was bestowed with the aim of investigating the problems
hindering the possibilities of sustainable growth of agribusiness in Nigeria, using Ekiti state as a case
study. Therefore, with the quantitative research method adopted for the success of this research,
factors associated with the current agricultural system in Ekiti state was examined and analyzed. It is
believed that this is a model of the agricultural system in Nigeria. Hence, some factors that could
enhance the possibilities of sustainable agribusiness in Nigeria, using Ekiti state as paradigm were
highlighted. With the highlighted factors, the study therefore concludes that if the government can
invest more in the agribusiness, it will not only serve as alternative for the country’s economy, it will
also provide employment opportunity for the unemployed youths in the country.
2. From the review of relevant literatures, it becomes evident that agribusiness is very
important to the development of developing countries like Nigeria, this is a direct result of its
crosscutting nature along these lines influencing all areas of the country's economy starting from the
socio-economics matters, to farming, to trade, to promotion, industrials, climate, among others. Based
on this, among numerous others, the research recommend that the government at all levels ought to
as an issue of earnestness strengthen awareness about manageable agriculture to individuals and
establish a helpful climate that will empower more farmers to come into the field.
3. From the analysis of the data gathered through the questionnaire and interview
conducted, the study finds out that Nigeria has the potential of becoming a hub for agribusiness in
Africa. However, the lack of support by the government among many other factors is strongly
affecting the agriculture in Nigeria hence, considering the current economic situation of the state; it
is advisable for government to team up with private organization if lost glory of agriculture in Nigeria
could be restored to its best.
4. The study set up that agribusiness was positively related to economic growth in
Nigeria and the relationship was huge both over the long haul and in the short run. In any case, the
pattern in economic growth development of Nigeria have not yielded a considerable improvement in
the prosperity of a bigger extent of the populace particularly the rural populace whose essential
occupation is farming and thusly, a financial development that converts into destitution decrease,
upgraded food security, wellbeing status, instructive limit and youth empowerment in rural Nigeria
should be embraced.
5. From the SWOT analysis, it was discovered that the Nigerian government’s sole
reliance on the oil sector as the only way to boost the country’s economy poses a great weakness to
agribusiness in Nigeria. Therefore, for this to be tackled, it becomes important for the government to
79
invest more into the agricultural sector and equip farmers that are ready to be involved in agriculture
towards reviving the forgotten agricultural sector in Nigeria. Also, the issue of security which has
spurred farmers into using the arable lands available in the forest need to be addressed to enhance
free agricultural activities in the country.
80
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ANNEXES
85
ANNEX I
INTRODUCTORY LETTER
VYTAUTAS MAGNUS UNIVERSITY
FACULTY OF BIOECONOMY DEVELOPMENT ACADEMY OF AGRICULTURE
SAMUEL MUDIAGA EGBEGBADIA
Research topic: Possibilities for the Sustainable growth of Agribusiness in Nigeria: Ekiti state
case analysis
Dear Sir/Ma,
This empirical survey is carried out in partial fulfillment of my study requirement in the above
caption school and your kind support through opinions you share is needed to fulfil the aim of this
research.
The questionnaire is designed to obtain information about the above mentioned subject in the
least burdensome way and your sincere response based on your knowledge and experience on the
questions is highly appreciated. Please note that the information you provide will be handled
confidentially and strictly for academic purpose.
Thank you for your kind assistance with the survey.
Yours faithfully,
Cc: All Farmers Association (AFA) - Ekiti state chapter
86
ANNEX II
QUESTIONNAIRES
PART A
Background information of Participants (quantitative analysis)
1. Gender of respondent (A) Male (B) Female
2. Age of respondents (A) Below 30 years, (B) 30 to 40 years (C) 41 to 50 years (C)51 Years and
above
3. Years of experience and operation of the Cocoa farming (A)1-5years (B)6- 10years (C) 11-
20years (D) 21 and above
4. The category of cocoa farm land(A) Small scale (below 5 hectares) (B) Medium scale (above 5
hectares) (C) Large scale (above 10 hectares).
5. Type of crops farmed? …………………………………………………………
6. Are there individuals available to work as labor? (A) Yes (B) No
7. Age range of individuals ready to work as labor (A) below 30 years (B) 30-40 (C) 41 yrs and above
8. Do you belong to any Farmer’s Association? (A) Yes (B) No If yes, what
Association?..................................................................................................................
PART B
(Please tick the table below as deem appropriate)
Very Weak –VW, Weak-W, Neutral-N, Strong-S and Very Strong –VS
1. The rate of performance of farming in terms of business success
NO Description
VW W N S VS
1.1 It business environment convenient or friendly
1.2 Is the business environment harsh or rigid
1.3 is government or private support encouraging
87
2. Their educational qualification
NO Description
VW W N S VS
2.1 No academic academy knowledge
2.2 Primary school education only
2.3 Secondary school level
2.4 Tertiary Institution
3. The description of the market for farm produce
NO Description
VW W N S VS
3.1 Available to local market ( villages and clans)
3.2 To region market ( cities, townships )
3.3 Supermarkets
4. The effectiveness of the collaboration between government and the farmers
NO Description
VW W N S VS
4.1 Is there government intervention regarding
farming cocoa in Nigeria?
4.2 Are there provision of fertilizers, improved
seedling and cash incentive to boost production?
4.3 Is there a provision for export of farm produce?
88
5. Availability of infrastructure
NO Description
VW W N S VS
5.1 Is there good road from farm community to other
towns
5.2 Is there electricity in the farm community
5.3 Is there good pipe borne/ irrigation
5.4 Is communication system good ( internet network
and telecommunication signal )
6. Availability of modern equipment for easy farming
NO Description
VW W N S VS
6.1 There is provision for tractor/bulldozer?
6.2 I use multi-crop harvester to harvest my farm
produce
6.3 I use broadcast spreader for sowing and fertilizing
my cocoa seedling
7. Access to loan
NO Description
VW W N S VS
7.1 Is loan from family and friends or personal
savings
7.2 Is loan collected from government and is it easy to
access loan from government.
89
7.3 Is Loan from financial institution ( Bank or
lending house )
7.4 Is loan from cooperative organization
8. Assistance from private organizations
NO Description
VW W N S VS
7.1 Is there any form of assistance from any private
organisation regarding your farming?
7.2 Is the assistance provided by private organisation
readily accessible
7.3 is the assistance provided in form of loan or grant?
7.4 Is the loan or grant returnable?
9. The investment in infrastructural supports facilities in your community such as roads,
irrigation etc.
NO Description
VW W N S VS
9.1 Is there good roads that is easily accessible to the
farmland?
9.2 Is there provision for irrigation by government in
your farming environment?
9.3 Is there a provision for an available market to sell
your cocoa farm produce?
9.4 Is there a provision of facilities for cocoa
storage/processing/preservation?
90
10. Ease of farming business environment in terms access to land, improved seedlings,
fertilizers etc
NO Description
VW W N S VS
10.1 Is there provision for land and is it accessible?
10.2 Is the land leased or purchased?
10.3 Are the seedlings available within your
environment?
10.4 The fertilizers, manure, pesticide etc are available
at your farm environment?
11. Research initiatives to improve the farming through development of resistant seeding to
disease/ pest and replanting in the state (eg. the Cocoa Research Institute of Nigeria –CRIN)
NO Description
VW W N S VS
11.1 Is there a provision for development of cocoa
seeding in your area?
11.2 Is there a centre for agricultural research and
extension? To boost productivity?
11.3 Is there an agency for Cocoa research,
Communication and information centre?
12. Supports for farmer’s incentives and farm extension workers
NO Description
VW W N S VS
91
12.1 Is there a specific incentive for farmers and farm
extension workers?
12.2 Is there any additional support from NGOs for
farm extension workers?
12.3 There is a special remuneration and incentive for
farm extension workers
13. There is a special remuneration and incentive for farm extension workers
NO Description
VW W N S VS
13.1 Length of tenure: The longer you work on the
farm, the higher your income
13.2 Equity accumulation: farmer is given specific
seedling and land to plant and harvest with the
equipments freely
13.3 Physical production: the more you produce, the
more your incentives
14. Policies on price control and information dissemination to farmers beneficial to farmers
NO Description
VW W N S VS
14.1 There is a law that controls/regulate prices of
seedlings and farm tools
14.2 There is a forum for the dissemination of
information to farmers to keep them updated on
current price change
14.3 The government are the ones regulating the prices
of farm goods/services
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14.4 There is no price control anywhere, everyone
sells at whatever rate they want
14.5 Price control is regulated by season and consumer
demand
15. Development of efforts at collaborative planning for improvement of variety methods of
farming in the state for better output (state and farmer’s association)
NO Description
VW W N S VS
15.1 There are efforts to collaborate and improve
methods of farming in Ekiti state
15.2 There is a forum where farmers meet and are
enlightened on the best methods of farming
15.3 There is a monthly/weekly meeting of farmers in
my area that aims to diversify different methods
of farming that is geared towards productivity.
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ANNEX III
FOR PARTICIPANTS SELECTED FOR QUALITATIVE EMPIRICAL STUDY
Background information of Participants (qualitative analysis)
INTERVIEW GUIDE
1. Gender of respondent (A) Male (B) Female
2. Years of experience as a farmer (A)1- 10years (B) 11-15years (C) 16 -20years (D)21 years and
above
3. Information on the performance of Agriculture in the state
4. Notable type of agriculture in the state
5. Provision for subsidies and agrochemicals to farmers in the state
6. Pest and disease control inputs
7. Farming inputs (e.g. dependent on natural weather condition or alternative supports
8. Farm Extension activities on methods of farming and production
9. Government policies on agriculture in the state
10. Potentials of agriculture as agribusiness
11. Suggestion on improvement of agriculture towards agribusiness in the state
94
ANNEX IV
Literature reviewed and Interpretations
S/N Author Quotes Interpretation
1. Lewis, W. Arthur The unskilled worker is of more use to the
capitalist sector
The unskilled workers
are as important to the
economic sector, same
way with the skilled
worker; hence, they
cannot be jettisoned.
2. Gary In the subsistence sector, labor is employed
up to the point where its marginal product
is zero while the capitalist sector work will
be utilized up to where its marginal
products rises to the wage rate
The capitalist have the
capacity to even
employ more of this
unskilled labor to
increase the supply
rate.
3. Ootsuka K. The economy sector could develop just
by cajoling laborers out of the conventional
sector or from the position of the jobless,
and the traditional sector could compensate
for any mishap of laborers by drawing
laborers from a pool of subsistence labour
(including women and children)
The availability of
enough workers will
definitely open way
for the improvement
of the economy.
4. Lewis, W. Arthur Wages are the sum of two parts, a profit
from interest in human capital and an
economic lease procured by the laborers
since human capital cannot enter the
production function without being
encapsulated in a real individual. Laborers
designate themselves between the two
sectors to equalize the net profit
Workers’ wages can
come in two ways,
through investment in
human capital and the
economic rent earned
by workers.
5. Timmer, C.P Agricultural development is a multi-
sectional action that help and promote
The main objective of
agricultural
95
positive changes in the country and urban
territories.
development in any
given country
incorporates the
improvement of
material and social
welfare of individuals.
6. Schultz, Theodore. The person who farm as his progenitors
cannot deliver a great deal of food
notwithstanding of how rich the land or
how hard he works. The farmers who draws
near and acknowledges how to use what
science thinks about soils, plants, creatures,
and machines can create an abundance of
food anyway the land be poor. Nor need he
work so hard and long. He can produce to
such an extent that his siblings a great deal
of s and a portion of his neighbors will
move to town to bring in money. Enough
farm products can be created without them.
The conventional
agricultural sector
cannot grow with the
guide of the traditional
production factors
only, expect at a
significant cost.
7. World Bank In 1961, of the world's 3.0 billion people,
an expected 770.8 million (25.1 percent)
were directly occupied with cultivating, and
agribusiness addressed 13.4 percent of
generally pay (estimated regarding Gross
domestic product). In the half century since,
the world's total populace has expanded by
a factor of 2.4, to a sum of 7.4 billion, and
a lot of the worldwide economy has
contracted. In 2014, of the world's 7.4
billion people, an expected 1.3 billion (18
percent) were directly occupied with
cultivating, however farming addressed
simply 3.9 percent of by and large pay
(World Bank:2017).
Agriculture has the
potential of employing
more people and
taking a large section
of the population out
of poverty.
96
8. Alston & Pardey Today, an incredible still number of
individuals rely upon agriculture as their
source of livelihoods, and almost 50% of
the total populace actually lives in rural
areas, for the most part in agriculturally
based households.
A large population still
relies on agriculture to
make a living.
9. FAO The capacity of agriculture at generating
overall GDP growth and its near advantage
in decreasing poverty will vary from one
country to another.
The potentiality of
agriculture to generate
income to a country
differs from another
country.
10. Nwankwo O. C. The agricultural sector indeed has the
potentials to provide job opportunities and
raw materials for many agro-allied
industries.
Agro-allied industries
has the potentials of
providing job for the
population.
11. Garvelink, .J., K.
Wedding and S.
Hanson
The broad-based poverty reduction and to
achieve the food security in Africa, small
scale agriculture must be a central
investment focus
Small scale agriculture
should be developed to
enhance poverty
reduction and food
security in Africa.
12. Daramola et al Nigeria was regarded as a net exporter of
most agricultural products like cocoa,
rubber, oil palm, palm kernel, groundnut
among many other cash crops with
economic value.
Nigeria once did well
with Agriculture and if
they can invest in
agriculture, they have
the chance of reducing
poverty.
13. Ifeanyi et al. Full emphasis was placed on the oil
exploration, extraction and the profits it
brought
Nigeria focused on the
oil sector and
neglected other sectors
of the economy.
14. Cuong V.N. A country that relies solely on agricultural
export can be adversely affected by global
economic shocks.
Despite the capacity of
agriculture to reduce
poverty in a country, it
is not advisable for a
97
country to rely solely
on agriculture.
15. Hassanzoy Agribusiness comprises of a body of
knowledge, which is acquired from
different disciplines.
Agribusiness can
function as both an art
and a science of
managing any
agricultural business
enterprise.
16. Edwards & Schultz,
2005
Agribusiness is a dynamic and fundamental
endeavor that serves purchasers worldwide
and locally through development and the
board of different value chains that pass on
regarded merchandise and items got from
the sustainable organization of food, fiber,
and regular assets.
Definition of
Agribusiness as a
dynamic foundational
attempt that serves
buyers locally and
globally.
17. Pawa Tersoo The intrinsic value of agribusiness is that, it
involves a helpful energy of agro-
mechanical linkage and in the nutshell,
drawn in with the production and
appropriation of food and fiber needs of the
economy
Agribusiness, is a
contribution of
agriculture and
business, which can
enhance food creation
and provide what the
economy need to
thrive.
18. Okyida& Heady Albeit, the farm supply and production
components are very significant however
they rely upon such infrastructural facilities
like land, labour capacity, water and the
management
Despite the fact that
farm supply and
production
components are
important to a
country’s
development, they still
relies greatly on the
infrastructures like
Land, Labour etc. to
thrive.
98
19. Onwumere and
Onwunisibe
For the past 15 years, Nigeria’s business
community has focused on developing
sectors other than agriculture, including oil
and gas, telecommunications, and financial
services. The agribusiness sector has not
received consistent or adequate government
or private sector attention. n. As a result, the
agribusiness sector has not developed as
rapidly as other sectors of Nigeria’s
economy
The agricultural
sectors haven’t
received adequate
attention needed to
thrive like other
sectors.
20. Kutte and Tya The crucial issues confronting farming
mechanization in Nigeria today incorporate
the selection of mechanization procedures
that are generally brought about by the
government and the international agencies
who have failed to give adequate
consideration to the interests of farmers at
the neighborhood level just as the cycles of
technological change.
One of the serious
issues confronting
agribusiness in
Nigeria today, is the
absence of support by
the government.
21. Yakubu S. A. In larger part of Nigeria rural areas that are
useful for cultivating and other rural
activities, responsibility for is not
unmistakably characterized, however the
land has a place with the family.
Subsequently, an enormous number of
prolific land/soil might be left uncultivated
and fracture of land may cause low
efficiency.
Another problem
facing agriculture in
Nigeria is private
ownership of lands.
22. Oni the little road and rail constructed are fond
of crumbling as a result of poor
maintenance
Corruption is a
cankerworm affecting
the agricultural sector
of Nigeria.
23. NISER The agriculture system is mainly done
without the use of machines, hence human
labour becomes important in the production
Majority of farming
activities in Nigeria
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system, accounting for about 90% of the
farm operations.
are carried out without
modern machines.
24. Chemonics The main cause of this migration is the
perception by young men that farm labour
cannot support them and their families.
Majority of the young
people that could serve
as labor in the rural
areas are migrating
because they feel
agriculture is not
sufficient enough to
put food on their table.
25. Udemezue Anedo Some Nigerian adolescents consider
farming to be a exceptionally random temp
Job, implied uniquely for the illiterate
living in the rural settlement.
Farming is seen as a
job for the illiterates
and old people of
Nigeria.
26. Akpan S. B. The local farmers are even pretty much as
clueless as they need modern agricultural
education. The stature of ignorance there, is
Nigeria's total negligence and, her non-
usage of native languages in the nation’s
Pursuits for modern education. Henceforth,
in this present reality, individuals that
actually Studies in foreign languages have
not actually begun Learning, and this
degree of lack of education and ignorance
do frequently comprise some genuine
Mishaps, even in Nigeria's food production
efforts.
Illiteracy is one of the
factors affecting
agriculture in Nigeria
as most farmers could
not acquire the modern
methods of agriculture
because they are
mostly taught in
English language.
100
Certificate
is awarded to
Egbegbadia Samuel Mudiaga
for the presentation at scientific conference
"Young Scientist 2021"
Possibilities of agribusiness in Nigeria. A case study of
Ekiti State
Prof. dr. Aušra Blinstrubienė
Chairperson of the Conference Organizing Committee
22 April, 2021
Kaunas
101