The Discovery Of Crude Oil And Oil Prices

2425 Words Nov 8th, 2015 10 Pages
Introduction
Agricultural production which used to be the mainstay of Nigerian economy has been declined as results of crude oil discovery and subsequent increase in production and exportation of crude oil (Edo (2013). The discovery of crude oil and appreciation of oil price in the World market some years ago leads Nigerian government to abandon all other means of revenue generations including agriculture, just to depend solely on crude oil revenue to finance most of her budgets. However, crude oil exports are no longer sustaining the economy due to current downturn in crude oil price. For instance, the Nigerian government generated lots of revenues from crude oil exports but majority of her populations are still under the poverty line (Shaxson, 2005). Therefore, there is need to source revenue generations through other means. Among those means of revenue generation is through increase in agriculture production and exportation. But the sector needs massive overhaul and developments in order to yield fruitful results. Developments of agricultural sector will require serious investments in the sector, which is done properly, will improve export revenues in country through an increase in agriculture output and exportation. This therefore calls for an urgent need to assist farmers with capitals, improved and hybrid crops and livestock, and “subsidize agricultural inputs which in effect will increase agricultural yields” (Jerven, 2014). For instance, in many developing…

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