This study attempts to empirically examine
the effect of agriculture sector performance on food inflation in Nigeria from
2000-2022 using data from secondary sources. Augmented Dicky- Fuller (ADF) unit
root test, Autoregressive Distributed Lag (ARDL) bounds test, and Fully Modified
Ordinary Least Squares were used to analyze the data. The result shows that
food inflation reduces as the volume of agriculture output increases.
Therefore, government should continue to improve agricultural production by
investing more in infrastructural development in rural areas, introducing better species
of plants and animals, intensifying mechanization of farming to ensure mass
production, etc. More so, the government should address other factors identified to
have kept food prices high in the country including fuel scarcity, electricity
shortage, foreign exchange problem, insecurity, etc.
Citation:
Okon, E.O. (2023). Agriculture sector performance and food inflation: A focus on Nigeria. ASERC Journal of Socio-Economic Studies, 6(2), 122-130.