ABSTRACT

 This study deals on the trend in the funding of agricultural development in Abia State, Nigeria. The objectives of the study were to: compare the allocation of funds to different agricultural sub sectors; examine the trends in the total allocation to agriculture; identify the problem associated with the funding of agriculture and derive policy recommendation. The research was conducted in Abia State, Nigeria. Time-series data was extracted from the Abia State ministry of Agriculture. The data was analyzed with log linear trend model. The findings revealed that funding to crop, Livestock, Fisheries, and Agroforestry sub-sectors grows at an average rate of 0.6%, -0.2%, 0.13% and 0.7% respectively. The result of the analysis of the data revealed that the allocation increase over time since the coefficient of time is significant at 1% and positive. The coefficient of determination is 0.5466 which implies that 54.66% of the variations in budgetary allocation was explained by time. The f-ratio is significant at 1% indicating the goodness of fit of the model. The research also revealed that the structure of agricultural production in Nigeria shows dominance of crop production which is reflected in the high percentage of allocation of 47.66 percent which is accorded to it while the least percentage was allocated to fisheries sub-sector. The analysis of allocation of resource within the agricultural sector shows gaps with regards to allocative efficiency. Total budgetary allocation to agriculture shows a positive trend but it has been inconsistent which suggest that investment in the sector remains minimal. The government should tremendously increase budget allocation to other agricultural sub-sector since crop production has gained its ground in the Nigerian economy.