Non-Tax Incentives and Agricultural Output in Nigeria

Authors

Elias A. Udeaja, Central Bank of NigeriaFollow
Elijah O. Akanni, Central Bank of NigeriaFollow
Emomotimi M. Question, Central Bank of NigeriaFollow
Peter F. Offum, Central Bank of NigeriaFollow
Titoluwa P. Eyinla, Central Bank of NigeriaFollow

Publisher

Central Bank of Nigeria

Keywords

Non-tax incentives, ARDL, Agriculture

Abstract

This study investigates the impact of non-tax incentives on agricultural sector output in Nigeria from 1981 to 2019, using Autoregressive Distributed Lag (ARDL) Model/Bounds test technique. The findings of this study show that non-tax incentives have a significant positive impact on agricultural sector output growth in the long-run; however, the effect was negative and statistically insignificant in the short run. On the other hand, government expenditure on agriculture was negative and significant on agricultural sector output growth in the short-run, while its long-run impact was also negative but not significant. Therefore, the study recommends targeted expansion of non-tax incentives to the entire agricultural value chain with appropriate monitoring and evaluation to boost output in the sector.

Author Bio

The authors are staff of the Research Department, Central Bank of Nigeria

Publication Title

CBN Economic and Financial Review

Issue

3

Volume

59

First Page

87

Last Page

105

Recommended Citation

Udeaja et al., (2021). Non-tax incentives and agricultural output in Nigeria. Economic and Financial Review, 59(3), 87-105.