CHAPTER ONE
INTRODUCTION
BACKGROUND TO THE STUDY
Development efforts in the post-independence period in Nigeria have produced mixed results. These results are due largely to the growth-oriented approach to development planning which emphasized growth in macroeconomic variables such as Gross National Product (GNP), investment, etc. Thus Nigeria experienced growth up until the 1970s. Average annual rate of growth of GDP was 4% in the 1950s, 3,5% per annum in the 1960s, and 6,5% per annum in the 1970s (Diejomaoh, 1984). Growth rates in the 1970s were very impressive: 8,7% in 1976-77; 7,5% in 1977-78; and 8,8% in 1979-80. In many sectors, however, performance was poor. The agricultural sector in particular performed very poorly. When the first National Development Plan was launched (1962-68), agriculture contributed 61,2% of GDP and was the chief foreign exchange earner for the nation.
Planning efforts placed emphasis on industrialization, and concentration on industry led to the neglect of agriculture. This neglect was worsened by the discovery and exploitation of crude oil in Nigeria. The ‘oil boom’ made Nigeria heavily dependent on oil revenues, to the neglect of other section, especially agriculture. The neglect of the agricultural sector meant that it could not perform the is expected of it, such as providing employment opportunities, self-reliance in food production, higher per capital income, foreign exchange earnings and industrial raw materials (Federal Ministry of National Planning, 1975). Instead rising food prices, growing food import bills, decline of traditional exports, and increasing rural-urban migration were the results. Imports of food and beverages rose from N61,6 million in 1970 to N2,1 billion by 1981 (Adeyemo, 1984). In per capital terms, food production showed a declining trend. In the Third Development Plan Period (1975-1980) efforts were made to revive the agricultural sector. The growth rate of food demand was estimated to be 3,5% per annum while that of food production was only one per cent per annum. Thus increasing food deficits were expected if no efforts were made to increase food production. One of the objectives for the agricultural sector for the fourth plan period was to (Federal Ministry of National Planning, 1981): promote increased production of food and other raw materials to meet the needs of a growing population and rising industrial production, a basic objective in this respect is the attainment of self sufficiency in food within the plan period.
The Fourth Plan period witnessed the launching of the Green Revolution Programme and implementation of various other agricultural policies. However, as Table 1 shows, total food production did not grow significantly and per capital food production declined. While Nigeria could finance food import bills, deficits in food production could be absorbed. However, the oil glut of the 19808 led to dwindling foreign exchange and an inability to pay for food or raw material imports. This, in addition to mounting foreign debt, allude it necessary to revamp the economy. The major economic policy instrument of the 19808, to bring about greater balance in the economies of developing countries, was the concept of ‘structural adjustment‘.
