Determinants of agriculture output towards positive impact on economic growth of Nigeria 1981-2020

The study examined determinants of agriculture output towards positive impact on economic growth of Nigeria and the results from the study shows that, the variables significantly impacted the agriculture output. Three research question were used for the study and related literature was reviewed. As a method of estimation, the Ordinary Least Squares method (OLS) was employed to estimate Vector auto-regression (VAR) and granger causality test. The study of this method is based on the fact that the technique is relevant to the objective of this study and has desirable property for this analysis. Moreover, it was revealed that Exchange rate (EXR), had significant and negative impact on Agricultural Output (AOUT) in Nigeria. This implied that decrease in Exchange rate (EXR) led to increase in Agricultural Output. Furthermore, the result also revealed that Inflation (INF) had no significant impact and relationship on Agricultural Output (AOUT) in Nigeria. This implied that a rise in Inflation (INF) led to decrease in Agricultural Output (AOUT). Lastly, Interest Rate (INT) is non-statistically significant. It also indicates that there is no positive connection between Interest Rate (INT) and Agricultural Output (AOUT) in Nigeria for period between (1981-2020). The study concludes that increasing effective exchange rates, interest rates, inflation rates, will positively affect Agricultural Output Nigeria's economic growth. Based on the findings the study therefore recommends that the Government policies should encourage the inflow of foreign private investment so that it can continue to encourage the production or development of the agricultural sector in Nigeria and accountability aimed at raising living standards, increased attention to cultural and human values, improved education, and the creation of more jobs will all contribute to greater individual and societal success in addition to improving material well-being.