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INCLUSIVE GROWTH IN NIGERIA: Equity in Modern Agricultural Input Opportunities and Determinants of Small Farmer Inclusion

INCLUSIVE GROWTH IN NIGERIA: Equity in Modern Agricultural Input Opportunities and Determinants of Small Farmer Inclusion

 

Abstract: The notion of inclusive growth is a concept that encompasses equity, equality of opportunity and protection in market as well as employment transitions. In Nigeria’s agricultural sector, two noteworthy distributional aspects of programmes often targeted at farmers are that it is tax financed and sometimes subsidized for essential farm inputs and services. Given the cost and leakages regarding subsidy implementation, how equitably farmers are able to access farm input support continues to be debated. This study investigated changes in the level and equity of agro-input distribution using the social opportunity maximization framework. The panel data set for farm households collected by the National Bureau of Statistics was used for the study. Findings reveal that over the period investigated, the average level of subsidized fertilizer available to the entire population declined from 46.8 percent in 2010 to 30.5 percent in 2012. Equity of access was more pronounced in 2010 compared to 2012. Other factors beyond income determined the likelihood of farmers’ access to agro-input subsidy. If policy interventions succeed in ensuring equity of opportunities, then inequality in farm profitability would only reflect differences in farmers’ real effort and entrepreneurial skill.

JEL classification: D31 D63 D71 E23 E24 H2 I3 O1

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