Macroeconomic factors: Cereal Grains Output and Prices in Nigeria

Ahmad Nazifi Muhammad, Ahmad Usman Shu’aib and Zulkiflu Abdu
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Ahmad Nazifi Muhammad: Department of Agric. Econs., Kano University of Science and Technology, Wudil, Kano State, Nigeria
Ahmad Usman Shu’aib: Department of Agriculture and Economics, Bayero University, Kano, Kano State, Nigeria
Zulkiflu Abdu: Department of Agric. Econs., Kano University of Science and Technology, Wudil, Kano State, Nigeria

International Journal of Research and Scientific Innovation, 2021, vol. 8, issue 3, 46-49

Abstract: Despite the facts that less attention is given to the effects of macroeconomic variables on cereal grains output in Nigeria, this study examine the effect of macroeconomic factors, output and prices of selected cereal grains in Nigeria using OLS technique and quarterly data from 2006 to 2016. The study analysed secondary data obtained from a time-series for cereal grains prices sourced from FMARD. While, data for macroeconomics variables and cereal grains outputs were obtained from the publication of Central Bank of Nigeria (CBN) Statistical Bulletins. The estimated outcome form the output model for rice reveals that quarterly interest rate and money supply increases rice output, while oil price reduce rice output. However, exchange rate and inflation have no effect on the rice output. The estimated outcome for maize output model shows that inflation rate maize output in Nigeria. The result also indicates that exchange rate increase Sorghum output level. Nevertheless, interest rate, inflation, and money supply does not determine the level of Sorghum output. In addition, the estimate form the price of rice model illustrates that exchange rate, inflation and money supply increase price of rice, while interest rate decreases the price of rice in the nation. In the maize price model, exchange rate, inflation and oil price accelerates the price level of maize and money supply decelerates the price. The outcome shows that interest rate has no effect on the price of maize. Furthermore, exchange rate, inflation and oil price rises price of Sorghum in the nation. Nonetheless, interest rate and money supply does not determine the price level of Sorghum. Hence, the study suggest that since, exchange rate, inflation, interest rate and money supply affect the level of price and output of cereals grains policymakers in Nigeria should design appropriate policies to mediate and control exchange rate and inflation for sustainability of the output and price of cereal grains as well as the stability of the economy. This could be done through price control measures and fixed interest rate as well as exchange rate policy to financial institutions in the nation.

Date: 2021
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