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THE OIL
SECTOR VIS-A-VIS THE AGRICULTURAL SECTOR: THE NIGERIA EXPERIENCE
ABSTRACT
This study
aims at evaluating the oil sector vis- a vis the agricultural sector in Nigeria
from 1981-2007. The role of agriculture in the Nigerian society has been quite
significant even in the pre-colonial times. The attractiveness of the Nigerian
agricultural sector to the colonialist largely formed the basis for the
development of the railway system from the north to the coast through the
eastern and western of the country given that there was the need to evacuate
agricultural produce from the hinterland to the coasts for onward shipment to
Europe as raw material to feed British industries. The agricultural sector used
to be the mainstay of the Nigerian economy. It provided for the nation,
generated revenue and foreign exchange earnings for the government, supplied
raw materials to the industrial sector, generated employment and contributed
over 50% of the Gross Domestic Product (GDP). This occurred until the 1970’s
when the oil sector came in and took over from agriculture in such a way that
there was a rapid decline in the agricultural sector output. Nigeria became
solely dependent on the oil sector for its revenue such that policies that were
formulated were usually in favor of the oil sector. This obviously has led to
the neglect of the agricultural sector as all focuses are on the oil sector.
This research work aims at determining the relationship between the oil sector
and the agricultural sector, the impact of the oil sector and the effects of
exchange rate on the agricultural sector and to find out ways to solve the
problem, and make some recommendations that can bring about positive change.
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