Exploring The Gross Domestic Product Contribution of Agriculture and Natural Resource-Based The Activities Sector in Nigeria
Year: 2025
Type: article
Abstract: This study explored the contribution of the agricultural sector, which included agriculture and natural resource-based activities, to Nigeria’s GDP. The data used in the study were secondary data obtained from the 2023 Central Bank of Nigeria (CBN) statistical bulletin, for the period of 1981 to 2023. Multiple linear regression analysis and Z-test for two population equality means were employed in this study. From the graphical representation, it was evident that different sectors contributed varying proportions to Nigeria’s GDP. It was revealed that the services sector, as one of the key sectors of Nigeria's economy, contributed the highest share of 49.50% to GDP, the industrial sector contributed 27.47%, while the agricultural sector contributed 23.07% over the study period. In establishing the relationship between Nigeria’s economy and agriculture and natural resource-based activities, the results demonstrated that farming-related activities had a positive relationship with Nigerian GDP, whereas natural resource-based activities had a negative relationship with Nigerian GDP over the study period. Also, the results indicated that all the independent variables used in the study were statistically significant with Nigeria’s GDP (p<0.05). The model used was a good fit for the dataset, with an R-squared value of 0.9930, indicating that 99.30% of the variability in agriculture and natural resource-based activities was explained by the model. The remaining 0.70% was attributed to factors not included in the study. In addition, the graphical display for the agricultural sector’s contribution to Nigeria’s GDP showed that farming-related activities accounted for a substantial 95.67% of the sector’s contribution, while natural resource-based activities contributed only 4.33%. Based on the findings, the regression results (R² = 0.9930 and parameter significance at p < 0.05), along with the Z-test result (p < 0.05), indicate that the agricultural sector is a relevant driver of Nigeria’s GDP. If the government pays more attention and allocates more resources to the sector, it could significantly boost the country's economic growth. The study recommended that since the agricultural sector contributed only 23.07% to Nigeria’s GDP compared to other sectors and is underperforming, the Federal Government should revamp agricultural policies to support mechanization and improve access to modern technologies, which will enhance the productivity of agricultural activities in the country.
DOI: 10.14419/14wsky42
Author: Victor Chijindu Iheaka
Institution: Imo State University
Language: English
Domain: Life Sciences
Open Access status: diamond
OpenAlex ID: W4413220210