THE EFFECT OF BUDGETARY ALLOCATION ON AGRICULTURAL PRODUCTIVITY AND ECONOMIC DEVELOPMENT IN NIGERIA

The study analyzes the effect of budgetary allocation on agricultural productivity and contribution of agriculture to economic development in Nigeria using multiple regression analysis and time series secondary data. The study was based on the assumption that over the years, agriculture being the mainstay of Nigerian economy has been given little attention in terms of funding. Furthermore, the contribution of agriculture to national economic development was equally analyzed in order to justify the need for better funding of the sector; the analysis of the sector was in comparison with other key sectors of the economy (Education sector and Health Sector). Agricultural contribution to national economic development was quite significant than the two other sectors. From the analysis there was an insignificant relationship between budgetary allocation and Agricultural output which denote that there have been little allocation to the agricultural sector which as a result leads to the poor performance and also this could be as a result of poor disbursement offund in the sector. It was therefore recommended that to enhance agricultural output, government should as a matter of deliberate policy increase the budgetary allocation to agricultural sector in order to bring about a noticeable improvement in its contributions to national economic development and also, should eliminate government policies that affect agricultural development adversely such as arbitrary exchange rate system, devaluation of naira, withdrawal of fertilizer subsidy, politization of fertilizer distribution, among others..