IIARD International Institute of Academic Research and Development

Journal of Business and African Economy (JBAE )

E-ISSN 2545-5281
P-ISSN 2695-2238
VOL. 11 NO. 2 2025
DOI: 10.56201/jbae.v11.no2.2025.pg127.154

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Agricultural Sector Development and Unemployment in Nigeria

Ozuzu Chukwemeka Sydney Reginald PhD, Amadi Rose Celestine PhD, Young Geoffrey Nwala

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Abstract

This study examined the relationship between agricultural sector development and unemployment in Nigeria. Time series data were sourced from Central Bank of Nigeria Statistical Bulletin from 1990-2023. Four hypotheses were formulated to explore the relationship between agricultural sector development and unemployment in Nigeria. The study modeled unemployment rate as the function of agricultural productivity proxy agaric sector gross domestic product to total gross domestic product, agricultural sector finance proxy by agricultural credit grantee scheme to gross domestic product , agricultural fiscal budget as percentage of gross domestic product and agricultural sector export as percentage of gross domestic product. The study employed panel data Ordinary Least Square Methods, unit root test, cointegration test, granger causality test and vector error correction were used as data analysis methods. The unit root test results, using the ADF unit root test suggest found that the variables are stationary at difference and integrated in order I (1). The cointegration test found a long-run relationship between agricultural sector development and unemployment. The granger causality test found unidirectional causality from agricultural productivity to unemployment rate while other variables have no causality. Vector error correction found that positive and significant relationship while agricultural financing, fiscal budget and export has negative relationship with unemployment. 73 percent changes on unemployment rate in Nigeria were explained by agricultural variables. From the findings, the study concludes significant relationship between agricultural sector development and unemployment in Nigeria and recommends that the government should remove every constraint to agricultural policy effectiveness, such as policy instability, policy inconsistencies, narrow- based policy formulation, poor policy implementation and weak insti

keywords:

Agricultural Sector, Development, Unemployment, Nigeria

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