(Enterpreneurship Department, Nasarawa State University, Keffi, 2013-03-09) Aiyedogbon, John Olu-Coris
The paper investigates agricultural productivity and employment generation in Nigeria for the period 1986-2011. It has been argued that agricultural sector has the capacity to sustain the Nigerian economy.
The econometric model was based on Cochrane Orcult iterative method. The variables employed include unemployment rate, government expenditure in agriculture, government expenditure in education as a proxy for human capital development, index of agricultural production and foreign direct investment in agriculture. Results show that government expenditure in agriculture, index of agricultural production and foreign direct investment in agriculture have positive impact on current unemployment with only foreign direct investment in agriculture statistically insignificant. On the other hand, impact of government expenditure in educational sector on unemployment is negative, though statistically insignificant. The results also show that the independent variables explained about 85 percent of unemployment (i.e. 15 percent of employment) in Nigeria between 1986 and 2011. The paper recommended that relevant agricultural policy should be formulated by the policy makers while adequate funds made available.