In the heart of Africa, Nigeria’s agricultural sector is undergoing a technological revolution, but not all subsectors are reaping equal benefits. A groundbreaking study published in ‘Scientific African’ (translated as ‘African Scientist’) sheds light on the disaggregated impacts of technology on Nigeria’s agriculture, offering insights that could reshape policy and investment strategies.
The research, led by Joel Tobiloba Adeyemo from the Department of Economics at Bowen University in Iwo, Nigeria, delves into the complex relationship between technology and agricultural output across Nigeria’s crop, livestock, fishing, and forestry subsectors. Using advanced econometric models, Adeyemo and his team uncovered a tale of technological haves and have-nots, with significant implications for the sector’s future.
The study reveals that while technology significantly boosts productivity in the crop and fishing subsectors in the long run, it has an inverse relationship with forestry output. This finding highlights inefficiencies in technology application in the forestry sector, a point Adeyemo emphasizes. “The inverse relationship in forestry suggests that technology might be misapplied or underutilized,” he notes. “This is a call to action for targeted interventions to optimize technology use in this subsector.”
Capital investment, another critical factor, shows a strong short-run impact on crop and livestock output. However, its long-run effects diminish, indicating the need for continuous reinvestment. “Capital stock is crucial, but it’s not a one-time fix,” Adeyemo explains. “Sustained investment is key to maintaining productivity gains.”
Labor, often overlooked in the face of technological advancement, proves vital in the long run for crop and livestock production. This underscores the importance of a balanced approach that combines technology with human capital development.
Macroeconomic factors also play a significant role, with real GDP, interest rates, and trade policies exhibiting varying effects across subsectors. This variability stresses the need for a differentiated policy approach tailored to each subsector’s unique dynamics.
The study’s findings, validated using the Dynamic Ordinary Least Squares (DOLS) estimator, provide a robust foundation for policymakers and investors. They highlight the necessity for targeted technology transfer initiatives, sustained capital investment, and sector-specific interventions to optimize agricultural productivity.
As Nigeria strives for sustainable agricultural growth, food security, and economic resilience, this research offers a roadmap for the future. It challenges stakeholders to move beyond one-size-fits-all approaches and embrace the diversity within the agricultural sector. By doing so, they can unlock the full potential of technology, driving growth and prosperity for all.
The insights from this study, published in ‘African Scientist’, are set to influence future developments in the field, guiding policy and investment decisions. As Adeyemo puts it, “The future of Nigerian agriculture lies in understanding and leveraging these subsector-specific dynamics. It’s not just about technology; it’s about how we apply it.”