January 20, 2020Agric Digest
As against previous result, the Agricultural appropriation budget to total appropriation budget fell from 2.00% in 2018 to 1.56% in 2019. Though a number of economic activities took place in the year, the appropriation budget for Agriculture in 2019 fell to N137.9 billion. This amount however allocated to the sector was 20.2% fall short of previous value in 2018; a decrease by N34.9 billion.
As at the 3rd quarter, Nigeria’s Gross Domestic Product (GDP) grew by 2.28 %( year-on-year) in real terms compared to the third quarter of 2018 which recorded a growth of 1.81%. The real GDP growth rate observed in the third quarter of 2019 indicates an increase of 0.47% points. Relative to the second quarter of 2019, which recorded a growth rate of 2.12%, Q3 2019 represents an increase of 0.17% points. On a quarter on quarter basis, however, real GDP grew by 9.23%. The growth rate in Q3 2019 represents the second-highest quarterly rate recorded since 2016.
In the quarter under review, aggregate GDP stood at N37, 806,924.41 million in nominal terms. This performance is higher compared to the aggregate of N33, 368,049.14 million recorded in the third quarter of 2018, representing a year on year nominal growth rate of 13.30%. The growth rate is, however, lower relative to rates recorded in the third quarter of 2018 by –0.28% points and the rates recorded in the preceding quarter by –0.71% points. For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors.
In analyzing price movements under this section, note that the CPI is weighted by consumption expenditure patterns which differ across states. Accordingly, the weight assigned to a particular food or non-food item may differ from state to state making interstate comparisons of consumption basket inadvisable and potentially misleading.
In November 2019, food inflation on a year on year basis was highest in Sokoto (18.77%), Kebbi (18.08%) and Ekiti (17.18%), while Katsina (12.61%), Bayelsa (12.50%) and Bauchi (12.44%) recorded the slowest rise. On month on month basis, however, November 2019 food inflation was highest in Kwara (2.92%), Sokoto (2.72%) and Bayelsa and Edo (2.66%), while Nasarawa (0.31%) recorded the slowest rise with Lagos and Ondo recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).
Nigeria signed the African Continental Free Trade Agreement (ACFTA) in 2019 which allowed goods to move between member states in Africa without tariffs. This agreement favours African nations that have lower costs of production, as they can export cheaper and gain market share. In the same vein, Nigeria has closed her land border because the Country’s border policy and regulations are not being respected. In a view to enforcing tax compliance among neighbouring countries to the rule of governing cross border trade, the Nigerian land border was closed. all goods have been banned from being exported or imported through our land border.