ECONOMIC PROBLEMS OF WHEAT PRODUCTION IN NIGERIA

ECONOMIC PROBLEMS OF WHEAT PRODUCTION IN NIGERIA

Abstract:

Wheat (Alkama) production which dates back to centuries in the Nigerian Sudanic belt was, before the construction of large-scale irrigation dams in the 1970s, on a modest scale. Large-scale wheat production is however built around a lot of controversy. Even though the government objective of attaining wheat self-sufficiency to close the huge import gap is fully recognised, the point is how to exploit the package of macroeconomic incentives under the SAP geared towards agricultural expansion. But previous studies and experiences made us to begin to question the viability of large-scale wheat production in Nigeria. The general objective of this study therefore is to investigate as a case study of Kano state, whether the package of macroeconomic incentives provided under the SAP can be fully utilized or have indeed been fully utilised for the purpose of large-scale wheat production under the Accelerated Wheat Production Programme (AWPP), with the specific target of attaining self-sufficiency. It is important however to note that, past government policies aimed at large-scale wheat production have been characterised with failure. The thesis provides an analysis as to how local wheat production was unable to meet the huqe import level like that of the late 1970s and early 1980s and that a positive domestic resource cost implies comparative disadvantage. The huge cost of wheat production is more than that of importation. The general recommendation towards improving the growth potential of wheat in Nigeria is provided at the end of the study.

ECONOMIC PROBLEMS OF WHEAT PRODUCTION IN NIGERIA