The Impact of Food Importation On Food Production in Nigeria: The Case of Rice Importation and Production

ABSTRACT The research was on the impact of food importation on food production in Nigeria: The case of rice importation and Production. This research is important because Nigeria as country is struggling to attain strong agricultural base which would enable the country sustain development. The work departed from other studies by evaluating the impact of food importation on food production in Nigeria with the objective of ascertaining the impact of rice importation on rice production in Nigeria, ascertaining the impact of government expenditure on rice production in Nigeria and ascertaining the impact of Balance of Payments on rice production in Nigeria. This research is important because the impact of food importation on food production and balance of payment needs to be evaluated for appropriate policy formulation on food import restriction in Nigeria. Hence the researcher adopted multiple linear regression models and least-squares method as the method of empirical estimation. Time series yearly rice data set from 1980 through 2011 3 obtained from Central Bank of Nigeria (CBN) publications was used and Ordinary Least Square (OLS) method of estimation was used while conducting the econometrics test and estimation. From the results it was confirmed in line with other similar studies that the demand elasticity for locally produced rice is low hence high tariffs would hamper demand for imported rice product, and increasing demand for locally produced rice would trigger rice production and reduce imports. Policy recommendations favoured protectionism approach of bans on the importation of the product to encourage domestic production and only after self sufficiency in rice production has been attained can the country now proceed to export the commodity which would better the Balance of payments position and encourage healthy competition with regards to locally and foreign rice.