CHAPTER ONE

1.1 Background of the Study

Agriculture remains one of the most important sectors of Nigeria’s economy, providing food, employment, and raw materials for industries. It contributes nearly one-fourth of the national Gross Domestic Product (GDP) and employs more than two-thirds of the population (National Bureau of Statistics [NBS], 2023). However, despite its enormous potential, agricultural productivity in Nigeria has continued to decline due to low soil fertility, poor access to inputs, and inadequate government support. Among the key inputs required for optimal crop production, fertilizer plays a critical role in improving soil nutrient levels and boosting yield.

In recent years, maize has emerged as one of Nigeria’s most important staple crops. It serves as both a household food item and an industrial raw material for the production of animal feed, starch, and beverages. Nonetheless, many maize farmers still record low yields because of the limited use of fertilizers and other productivity-enhancing inputs. The Food and Agriculture Organization (FAO, 2023) notes that Nigeria’s average maize yield remains below 3.0 tons per hectare, compared to the global average of 5.5 tons per hectare. This gap has raised concerns about the effectiveness of agricultural input policies, especially fertilizer subsidies.

To address the persistent problem of low fertilizer use, the Nigerian government has introduced various fertilizer subsidy programmes over the years. These programmes aim to make fertilizers more affordable and accessible to smallholder farmers, thereby improving agricultural productivity. For example, the Growth Enhancement Support Scheme (GESS) launched in 2012 sought to deliver subsidized fertilizer directly to farmers through the use of mobile technology. Similarly, more recent initiatives under the Presidential Fertilizer Initiative (PFI) have focused on reviving local blending plants and ensuring timely fertilizer distribution (Federal Ministry of Agriculture and Food Security [FMAFS], 2022).

Despite these efforts, the impact of fertilizer subsidy programmes remains a subject of debate. On one hand, some studies have shown that subsidies help farmers increase their maize yield and income (Adesina & Adebayo, 2020). On the other hand, critics argue that corruption, poor targeting, and distribution inefficiencies have limited the expected benefits (World Bank, 2021). Moreover, in some cases, large-scale farmers benefit more than smallholders, who were the intended beneficiaries. Consequently, there is a need to assess how fertilizer subsidy programmes have influenced maize production in Nigeria, especially in terms of yield, income, and sustainability.

Given the strategic importance of maize in ensuring food security, this study aims to evaluate the effect of fertilizer subsidy programmes on maize production in Nigeria. It explores whether government interventions have truly improved fertilizer access, increased yield, and enhanced farmers’ livelihoods.

1.2 Statement of the Problem

Although Nigeria has implemented several fertilizer subsidy programmes, the country’s agricultural productivity remains below expectations. Many smallholder farmers continue to face high input costs and limited access to quality fertilizers. The distribution process is often characterized by corruption, inadequate monitoring, and favoritism. As a result, the intended beneficiaries rarely receive the subsidized inputs on time or in the right quantity (Adebayo, 2021).

Furthermore, the withdrawal or inconsistency of subsidy policies has sometimes discouraged farmers from continued fertilizer use. In many cases, when government support is withdrawn, fertilizer prices rise sharply, pushing resource-poor farmers out of the market. Consequently, maize yields decline, and food insecurity increases.

The main problem, therefore, is to determine whether fertilizer subsidy programmes have significantly improved maize production in Nigeria and to identify the challenges limiting their effectiveness.

1.3 Objectives of the Study

The general objective of this study is to evaluate the effect of fertilizer subsidy programmes on maize production in Nigeria. The specific objectives are to:

1. Assess the level of farmers’ access to fertilizer subsidy programmes in Nigeria.

2. Examine the effect of fertilizer subsidies on maize yield and productivity.

3. Determine how fertilizer subsidies influence farmers’ income and profitability.

4. Identify challenges associated with the implementation of fertilizer subsidy programmes.

5. Recommend strategies for improving fertilizer subsidy effectiveness and sustainability.

1.4 Research Questions

1. What is the level of farmers’ access to fertilizer subsidy programmes in Nigeria?

2. How do fertilizer subsidies affect maize yield and productivity?

3. To what extent do fertilizer subsidies influence farmers’ income and profitability?

4. What challenges hinder the effective implementation of fertilizer subsidy programmes?

5. Which strategies can enhance the performance and sustainability of fertilizer subsidies?

1.5 Hypotheses

• H₀: Fertilizer subsidy programmes have no significant effect on maize production in Nigeria.

• H₁: Fertilizer subsidy programmes have a significant effect on maize production in Nigeria.

1.6 Significance of the Study

This study is important for policymakers, agricultural stakeholders, and development agencies. It provides empirical evidence on the effectiveness of fertilizer subsidies in improving maize production. The findings will help government agencies refine future subsidy policies to ensure better targeting and transparency. Moreover, the study will assist non-governmental organizations (NGOs) and donor agencies in designing complementary interventions that promote efficient fertilizer use and sustainable productivity.

For smallholder farmers, the research highlights how access to affordable fertilizers can improve yields and income. It will also add to academic literature by bridging the gap between policy implementation and real-world outcomes in Nigeria’s agricultural sector. In the long run, improving fertilizer subsidy performance will strengthen food security, reduce poverty, and promote rural development.

1.7 Scope of the Study

The study focuses on maize farmers across selected states in Nigeria, particularly in key maize-producing regions such as Kaduna, Benue, Oyo, and Niger States. The research covers the period between 2010 and 2024, which includes the implementation of major fertilizer subsidy programmes such as GESS and PFI. The scope includes examining fertilizer accessibility, usage rate, yield performance, and farmers’ income.

1.8 Definition of Terms

Fertilizer Subsidy: A government policy that reduces the market price of fertilizer to make it affordable for farmers.
Maize Production: The process of cultivating and harvesting maize for food, feed, and industrial use.
Productivity: The quantity of output (maize) produced per unit of input such as land, labor, or fertilizer.
Smallholder Farmers: Farmers cultivating small plots of land with limited access to credit and technology.

References

Adebayo, K. (2021). Agricultural Input Policies and Productivity Growth in Nigeria. Ibadan: University Press.
Adesina, A., & Adebayo, O. (2020). Fertilizer Subsidy and Smallholder Productivity in Sub-Saharan Africa. African Journal of Agricultural Economics, 15(3), 44–57.
Federal Ministry of Agriculture and Food Security (FMAFS). (2022). National Fertilizer Policy Implementation Report. Abuja: FMAFS.
Food and Agriculture Organization (FAO). (2023). World Food and Agriculture Statistical Yearbook. Rome: FAO.
National Bureau of Statistics (NBS). (2023). Agricultural Sector Performance Report. Abuja: NBS.
World Bank. (2021). Subsidy Reforms and Agricultural Productivity in Developing Economies. Washington, DC: World Bank.