Effect of Agricultural Mechanization on the Growth of the Nigerian Economy

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.