An investigation into the role of Agricultural Sector in employment generation in Nigeria

Abstract

The study investigates the role of agricultural section in employment generation in Nigeria over the period 1994 to 2024. Focusing on understanding its contributions to national labour absorption, rural livelihood improvement and structural economic transformation. The variables used for the study are unemployment, agricultural sector, real gross domestic product, inflation and exchange rate. Using time series data, the study adopted purely analytical method of modern econometric technique such as ordinary least square regression, stationarity and unit root test, cointegration and error correction model (ECM). The study showed that Nigeria experienced GDP growth between 1994 and 2024, unemployment remained persistently high and volatile. Agriculture maintained a stable but declining share of GDP, underscoring structural shifts towards oil and services. Meanwhile, high inflation and exchange rate instability highlight macroeconomic imbalances that may weaken the capacity of agriculture and growth to reduce unemployment. The study also reveals the relationship between agricultural contribution to GDP and unemployment in Nigeria. In 2002, agriculture accounted for 36.97% of GDP, the highest value within the study period, while the
unemployment rate stood at 8.1%. This period reflects the strong role of agriculture as a major employer of labour and contributor to national output. The findings, showed that agriculture remains a major source of employment buffer, mostly for the youth and women in rural areas. The study concludes that with appropriate investment in value chain development, improved
rural infrastructure, agribusiness support programs, the agricultural sector can significantly enhance job creation in Nigeria.