Effect of Agricultural Mechanization on the Growth of the Nigerian Economy

Authors: Kingdom Mienebimo

Affiliation: Department of Economics, Niger Delta University, Faculty of Social Sciences

Corresponding Author: [email protected]

December 1, 2025

SIAR-Global Journal of Social Sciences & Legal Review

DOI: 10.5281/zenodo.17779704

Effect of Agricultural Mechanization on the Growth of the Nigerian Economy
Research Article Social Sciences

Abstract

This study examined the impact of agricultural mechanization on the growth of the Nigerian economy by employing an ex-post facto research design. Secondary data spanning 1981 to 2023 were obtained from the Central Bank of Nigeria Statistical Bulletin and World Bank Development Indicators. The autoregressive distributed lag (ARDL) model was used to analyse the relationship between real gross domestic product (RGDP) and the explanatory variables. The empirical results indicate that capital investment in agriculture and labour force in agriculture have statistically insignificant effects on RGDP, implying that capital investment and labour force contributions to agricultural output may be undermined by structural inefficiencies or inadequate mechanization. In contrast agricultural credit guarantee scheme and gross fixed capital formation significantly and positively impact RGDP, indicating that credit access and investments in fixed capital play pivotal roles in enhancing economic growth through agricultural mechanization. The study finds that while credit and fixed capital investments are instrumental in driving economic growth, capital investments and labour force contributions in agriculture need to be optimized. Inefficiencies in the agricultural sector, such as insufficient mechanization, may limit the potential of these variables to contribute effectively to economic growth. It is recommended that policymakers intensify efforts to promote agricultural mechanization through targeted funding, infrastructure development, and favourable credit policies.

Keywords

Agricultural Mechanization, Economic Growth, Innovations, Agricultural Productivity, ARDL

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How to Cite

Kingdom Mienebimo (2025). Effect of Agricultural Mechanization on the Growth of the Nigerian Economy. SIAR-Global Journal of Social Sciences & Legal Review, Vol. 1, No. 1. DOI: 10.5281/zenodo.17779704

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Article Information

  • Type: Research Article
  • Journal: SIAR-Global Journal of Social Sciences & Legal Review
  • Subject Area: Social Sciences
  • Published: December 1, 2025
  • Volume: 1
  • Issue: 1
  • Word Count: Not specified
  • DOI: 10.5281/zenodo.17779704
  • Processing Fee: $35.00 USD

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