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| Impact of Fertilizer Subsidy on Maize Output in Nigeria: 1987-2019. |
Moukhtar Muhammad Idris, Ahmad Muhammad, and Alhassan Mohammed Aminu
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Abstract:
The research investigates the impacts of fertilizer subsidy on maize output from the period of 1987-2019 built on refined Cobb-Douglass production function often referred to as AK growth model. As an imperative for the growing population in the country, an improved system of farming through government efforts of subsidizing agricultural input (most especially fertilizer) in order to aids the production of farm output like maize at a large scale remained significant and must be accorded with highest order of priority. The study utilized ARDL Bound Test and Dynamic OLS as a method of estimation. The result obtained from the bound test revealed that there exist long run relationship between fertilizer subsidy and maize output in Nigeria; while the result of DOLS discovered that all the examined explanatory variables: fertilizer subsidy, labour input and institutional quality exact positive impact on maize output. Though, the positive impact of fertilizer subsidy on maize output only become significant after taking one lagged period; while the positive impact of labour input and institutional quality are significant at both current and one lagged period. The study therefore, recommends that while government is encouraged to improve on its fertilizer subsidy program, it must also ensure strengthening of institutions responsible for administration of subsidized fertilizer input to guarantee delivery of right quality and quantity to the intended farmers at a very right time.
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