Agro -Allied Small And Medium Scale Business And Economic Growth Of Nigeria (1976-2021)


  • Bayode Olusanya Babatunde Osun State University
  • Dr Adebayo Olagunju osun state university
  • O.A Onikoyi osun state university
  • B.O. Oginni osun state university
  • B.L.O Kazeem osun state university


Agro-allied industries rely on agriculture for raw materials in order to produce finished goods that are helpful to livestock and people. The study examined the impact of agro allied small and medium scale business on economic growth of Nigeria between 1976 and 2020. The data was sourced from CBN Statistical Bulletin and analysed using econometric techniques such as ordinary least square, error correction model etc with the aid of EViews software. The Regression result showed that a positive and significant relationship exist between agro allied SMEs has a significant impact on real gross domestic product (R2 =0.586, Adjusted R2 = 0.577, p value= 0.02). The study concluded that agro allied small and medium scale business has moderate positive impact on economic growth of Nigeria. This study therefore recommends that the emphasis should be on modern technology to improve agro allied business to make economy more functional, relevant and growth driven.

Author Biographies

Bayode Olusanya Babatunde, Osun State University

Department of Business Administration

Dr Adebayo Olagunju, osun state university

Department of Accounting

O.A Onikoyi, osun state university

Department of Entreprenueship

B.O. Oginni, osun state university

Department of Human Resource Management

B.L.O Kazeem, osun state university

Department of Banking and Finance


Adeyipo, A., (2019). SMEs engine room of economic development, says CWG chief. Small

Business and Entrepreneurship. The Nation. Available through: 2.

Ajila, A. (2014). Agro-allied industries – Bedrock of the Nation’s economic revival. Business da.

Akingunola, R.O. (2011). Small and Medium Scale Enterprises and Economic Growth in Nigeria: An Assessment of Financing Options. Pakistan Journal of Business and Economic Review. ISSN 2220-5829, 2, 11-17.

Aluko, S. (2004). Making Natural Resources into a blessing rather than a curse: in covering oil. A Reporter’s Guide to Energy and Development. Open Society Institute.

Anyanwu, J.C. (1998). Stock Market Development and Economic Growth in Nigeria. The Journal of Business Perspective, January 1, 1998.

Atarere, L. O. I., (2016). Influence of monetary policies on the growth of the small and medium scale enterprises. International Journal of Innovative Finance and Economics Research 4 (2) 8-15.

Central Bank of Nigeria (2016). Contribution of the agricultural sector to Nigeria’s Gross Domestic Product, GDP. Retrieved April 12th 2016 from:

Chauvin, N., Mulangu, F. & Porto,G. (2012, February). Food Production and Consumption Trends in Sub-Saharan Africa: Prospects for the Transformation of the Agricultural Sector. UNDP Working Paper for African Human Development Report 1-74.

CIA. (2013). The World Fact Book. Retrieved March 3, 2013, from publications/the world fact book/geos/ni.html

Dinopoulos, E. & Segerstrom, P.S. (2006). North-South Trade and EconomicGrowth. CEPR

Discussion paper No. 5887.

Danjuma, N. H., Habakuk, A. & Anyesha A. A.(2014) international trade: a mechanism for

emerging market economies. International Journal of Development and Emerging

Market Economies .3( 1) 24-32. Published by European Center for Research

Training and Development UK (

Ibrahim, A. A. (1997). The socio-economic implication of Zaki Flour Mills on inhabitant of Azare. Geography Department F.U.T Yola.

Imoisi, A.I & Ephraim, J. (2015). Small and Medium Scale Enterprises and Economic Growth in Nigeria:. International Journal of Business and Management; 10,(3); ISSN 1833-3850 Published by Canadian Center of Science and Education.

Jelilo, J. & Bahago, K.A., (2017). Agro-Allied Industry and its Relevance on Economic

Performance: Evidence from Nigeria. Nile. Journal of Business and Economics. 6(1): 25-32.

Joseph, E. A & Michael, D. O (2013) Promoting Small and Medium Enterprises in the Nigeria Oil and Gas Industries. European Scientific Journal, 9(1) ISSN: 18857-7881 (Print) e- ISSN1857-7431 January 2013 edition.

Mahmood, H. U. (2011). Agro-allied industries and rural development: The Mambilla experience. J. Agric. Vet. Sci., 3, 26–35.

Nellis, J. & Parker, D. (2004). Principle of Macroeconomics. Transition Countries of Central and

Eastern Europe. ISBN 978-3-7908-1735-5.

NPCS (2000). Handbook on agro based industries. Niir Project Consultancy Services (40–55).

NTO Philips, O. O., Mbanasor, J. A. & Osuala, A. E., (2012). Influence of monetary policy variables on loan supply to Small and Medium Scale Enterprises in Nigeria.

Ogbo, A. & Nwachukwu, A.C. (2012). The Role of Entrepreneurship in Economic Development: The Nigerian Perspective. European journal of Business and Management, 4 (8), 95-105.

Oji-Okoro, I. (2011). Analysis of the contribution of agricultural sector on the Nigerian Economic Development. World Rev. Bus. Res., 1(1), 191–200.

Opafunso, Z.O. & Adepoju, O.O. (2014): The Impact of Small and Medium Scale Enterprises on Economic Development of Ekiti State, Nigeria. Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) .5,.16, 20.

Sanusi, L. S. (2010). Growth Prospects for the Nigerian Economy. Convocation Lecture delivered at the Igbinedion University Eighth Convocation: Research Departmen , Central Bank of Nigeria.

Sertoğlu, K., Ugural, S. & Bekun, F. V. (2017). The Contribution of Agricultural Sector on Economic Growth of Nigeria. International Journal of Economics and Financial Issues,2017, 7(1), 547-552.

Small and Medium Industries Equity Investment Scheme (SMIEIS) (2020). A paper Presented at the National Summit on SMIEIS Organised by the Bankers‟ Committee and Lagos Chambers of Commerce and Industry (LCCI), Lagos on 10th June 2003. Retrieved on 15/06/2008 from 10BJUNE. PDF

SMEDAN. (2005). Small and medium enterprises performance in Nigeria: A report presented at African entrepreneurship seminar organized in collaboration with the Scientific Committee on Entrepreneurship of the University of Essex. United Kingdom on the 5th of June.

Timmer, C.P. (1995): Getting agriculture moving: do markets provide the right signals? In: Food Policy 20 (5): 455-472.

Wang, C, Walker, E & Redmond J. (2011). Explaining in SMEs: the importance of owner motivation. International Journal of Organizational Behavior, ECU Publication pre. World Bank Annual Report (1995)






Economic Development, Technological Change, and Growth