OSEMWENGIE, K. P.
&
OMOTIOMA, B.
Department of Economics,
Faculty of Social Sciences,
University of Benin, Benin City, Nigeria.
For Correspondence, Email:presley.osemwengie@uniben.edu
Abstract
This study is designed to investigate the impact of rice production on Nigeria economy using time series data between 1987 and 2022. Secondary data was sourced from United States Department of Agriculture (USDA) and World Development Indicator (WDI) 2023. The estimation of the model was carried out using the Fully Modified Ordinary Least Squares (FMOLS) technique. The findings from the study among others showed that a unit increase in local rice production (LRP) will lead to 1.3 billion increase in real gross domestic product (RGDP), and this suggests a significant positive relationship between LRP and RGDP. Similarly, a positive relationship between rice importation (IMR) and RGDP was observed. This of course negates the a priori expectation, and the result indicates relatively higher price of locally produced rice due to its high demands and the ban on imported rice. The study however suggests the need for the government to provide necessary machinery and modern equipment for rice farmers coupled with social amenities like fertilizers, good roads to access rice production, provision of “zero interest loans” majorly for rice farming so as to encourage Nigerians youth into commercial rice farming and hence boost massive rice production so as to lower the price of locally produced rice. The study also recommended that rice importation should be controlled and regulated so as to discourage foreign rice consumption.
Keywords: Rice production, FMOLS, Real GDP, Nigeria economy, Economic growth
