Foreign Economic Policies And Its Impact On The Nigerian Economy: A Case Study Of The Structural Adjustment Programme (SAP)

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Introduction

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Nigerian economy during the first decade after independence could reasonably be described as an agricultural economy because in the words Ogen (2003), agriculture served as the engine of growth of the overall economy. During this period Nigeria was the world’s second largest producer of cocoa, largest exporter of palm kernel and largest producer and exporter of palm oil. According to Alkali (1997), Nigeria was also a leading exporter of other major commodities such as cotton, groundnut, rubber and hides and skins. Lawal (1997) observed that agricultural sector contributed over 60% of the GDP in the 1960s and despite the reliance of Nigerian peasant farmers on traditional tools and indigenous farming methods, these farmers produced 70% of Nigeria’s exports and 95% of its food needs. However, the agricultural sector was relegated to the background when Nigeria became an oil exporting country. This relegation was attributed to inappropriate exchange rate policy which made the prices of agricultural output too low to give farmer.

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