International Journal of Financial Management and Economics
Vol. 2, Issue 1 (2019)
Cocoa output, productivity and government expenditure in Nigeria (1970-2004)
Ihedioha Nice Nneoma, Ume Chukwuma Otum and Ume Sunny Chukwuemeka
The study was carried out to determine the topic relational analysis of cocoa output, productivity and government expenditure (1970-2004). The specific objectives were to determine the trend of cocoa output over the years; make comparative analysis of the output in the pre Structural Adjustment Programme (SAP), during SAP, and post SAP; make useful recommendations for improvement in cocoa output; determine government expenditure in cocoa production. The data obtained are wholly secondary in nature and were gotten from the CBN statistical bulletin (2004). It is clear from the above analysis that in real terms, cocoa production has been suffering from deterioration over the years, due to several factors such as (Unfavorable macroeconomic policies, low rate of adoption of appropriate technology, environmental hazard e.t.c). The growth is not as anticipated especially when compared to the aggregate output growth rate. The result showed that international cocoa price (INTP), infrastructural development at time t-1 (INFRAS) were statistically significant at 5% level; and rainfall in cubic millimeters at time (t-1) was not statistically significant. Nigeria being a traditional economy should place more emphasis on agricultural production especially cocoa because of its viability in the international agricultural commodity market, especially in London and New York. Revenue from this venture would also complement the revenue and foreign exchange from the oil sector over the years.