Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
On 18 November 2008
Overview
• Important changes of policies over the years
• Interventions vary significantly among regions
and commodities
Taxation of export commodities
Tariff and non-tariff barriers on imports,
Budgetary payments
Fundamental structural transformation of the economy
Share of agriculture in Nigeria
Agricultural production
Agricultural production
• Mainly root crops,
• Since 1960 production of cassava quadrupled,
• Yams production increased sixfold
• Below average production for traditional crops
(Cocoa, groundnuts, oil palm fruit, cereals,...)
Policies before independence
• Focus was on exports of agricultural raw
materials (cocoa, cotton, groundnuts and
palm oil)
• Trade occured mainly with Britain,
• No support for subsistence crops; majority of
farmers did not benefit
Agricultural policy after independence
Four phases can be identified:
Phase I (1960s): export-oriented; fiscal revenues
through export taxation.
Phase II (1970 -1986): strong governmental
intervention; elimination of export taxes, reduction
of import tariffs on agricultural inputs, guaranteed
minimum prices, fertilizer subsidies, credit support
schemes
→ Nigeria becomes large-scale importer of
agricultural and food products
Agricultural policy after independence
Phase III (1987 -1999): Government removes policies;
devaluation of the currency → government wants to
enhance price competitiveness of export commodities and
import-competing goods
Attempts to diversify production and export base (through
non-fuel export subsidies) and improve self-sufficiency (via
import bans)
Phase IV (from 1999): Adoption of ECOWAS common external
tariff: reduction in import duties, agreement that Nigeria will
abandon its special tariffs on sensitive products and
quantitative restrictions.
Exchange rate policies
High petroleum prices → Capital inflows due to oil industry
→ real exchange appreciation → real appreciation of the
currency → reduction of agricultural exports