Diversification of Revenue Sources and Agricultural Activities in Nigeria

Abstract

The broad objective of this research was to investigate the relationship between the revenue sources and the agricultural activities in Nigeria. However, the specific objectives are to determine the effects of agricultural indices on the Revenue from Agricultural Output (RAQ) Secondary data were used. The data were collected from Food and Agriculture Organization (FAO), Central Bank of Nigeria (CBN). National Bureau of Statistics (NBS), Nigerian Meteorological Agency (NIMET), Zenith Economic Quarterly, International Journals of Accounting, Economics and Agriculture. The econometric method of unit root and co-integration were employed to estimate the relationship between the examined variables while Ordinary Least Square Method was used to run the regression. The result revealed that Price of Agricultural Commodities (PAC= 0.8003), Average Total Rainfall (ATR= -0.1601), Agricultural Cultivable Land (ACL= 0.6413) and Agricultural Finance (AGF= 0.0955). All the explanatory variables except ATR indicate positive coefficient which means there is direct correlation to Revenue from Agricultural Output (RAQ) and probability values of all the independent variables (PAC= 0.0000 < 0.05, ATR= 0.0279 < 0.05, ACL= 0.0227 < 0.05 and AGF= 0.000 < 0.05) revealed that they are statistically significant and related to RAQ. Hence, agricultural indices (Adj. R-squared= 83%) and probability of F statistics (0.0000 < 0.05) jointly explain the variation in Revenue from Agricultural Output in Nigeria. The study therefore, concluded that Price of Agricultural Commodities, Average Total Rainfall, Agricultural Cultivable Land and Agricultural Financing significantly influence Revenue from Agricultural Output (RAQ) in Nigeria.