DIVERSIFICATION OF THE NIGERIAN ECONOMY THROUGH AGRICULTURE: THE EFFECT OF INDUSTRIALIZATION POLICY AND SAPON THE NIGERIAN TEXTILE INDUSTRY

ALIYU A AMANI

Abstract


The Federal Government of Nigeria has introduced policies and programmes aimed at diversifying the Nigerian economy away from oil since the early 1970s, notably the industrialization policy and the structural adjustment programme (SAP). How successful were these policy and programme in the diversification of the Nigerian economy through agriculture? This paper intended to provide answers to this question in the light of the effects of this policy and programmeon import substitution by local textile industry and domestic production of cotton, the key agro-based raw material of the textile industry.  Time series data (1974-2007) were collected and analyzed using a multiple regression model. Highlights of the findings of the study indicate (a) a highly significant inverse relationship between domestic cotton production and the output of the textile industry in Nigeria, (b) a highly significant relationship between output of the textile industry and the importation of cotton lint into Nigeria.The study concluded that that though the economic diversification policies of the FGN led to increase output of the textile industry in Nigeria, it did not lead to any significant improvement in the domestic production of cotton in Nigeria, suggesting that the Nigerian textile industry depended on imported cotton lint for its production. It recommended that a successful diversification of the Nigerian economy through agriculture must take cognizance of our domestic capacity to efficiently utilize, handle and process increased output of agro-based raw material expected from the agricultural sector.


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References


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