DETERMINANTS OF AGRICULTURAL FOOD GRAIN COMMODITY PRICES IN NIGERIA

Abstract

The study analyzed the determinants of agricultural food grain commodity prices in Nigeria. Secondary data was used for the study and covered the period of 1981-2018. Data obtained was analyzed using regression techniques. The findings revealed that inflation, importation policy, oil prices, quantity consumed of maize, corruption, population, that quantity supplied of maize and time variable significantly influenced the prices of maize in Nigeria within the period under review. Inflation, importation policy, quantity consumed, corruption, government capital subsidy, population and time variable significantly influenced the price of wheat in Nigeria within the period under study. The results further disclosed that on aggregate level, inflation, importation policy, quantity consumed of grains, corruption, government capital subsidy, population, quantity supplied of grains and time variable significantly (P≤0.5) influenced the price of food grains in Nigeria within the period under review based on the specified model. The study therefore, recommended that government should put in place necessary strategies to curb the rate of corruption and ensure political stability in the country that favours food grain price regulation as well as ensure that the prices of food grains in Nigeria, especially that of wheat and maize are made affordable to consumers and that it encourages the farmers to remain in the production of food grains in Nigeria.