Contribution of Foreign Direct Investment and Other Selected Variables to Agricultural Productivity in Nigeria: 1990-2016

Over the past few years, Nigeria has been faced with a series of policy changes and political instability that has led to the incidence of capital flight from Nigeria. This study sought to examine the contribution of Foreign Direct Investment (FDI) and other selected variables to the Agricultural productivity. The study made use of annual time series of some macroeconomic variables and agricultural productivity spanning the period1990 to 2016. The data were analysed using descriptive statistics and Multiple Regression Model. The data were further tested for stationarity using the Augmented Dicky-Fuller unit root test where it was ascertained that the entire hypothesized variable were stationary and significant (p<0.01) at first difference. The study revealed that the amount allocated to the agricultural sector declined steadily over the years with the highest value in 2014. Similarly, the determinants of agricultural productivity included exchange rate, inflation rates, GDP, Government regime and per capita arable land (ha). The study therefore recommends that balanced exchange rate should be controlled for to encourage FDI inflow into the country and funds disbursed should be properly monitored and a system put in place to ensure proper implementation of the purpose for which the funds was disbursed by the Ministry of Agriculture.