Business Administration Project Topics

A Critical Analysis of the Implication of Fuel Hike on Food Production and Supply in Nigeria




A historical glance at and the growth of the Nigerian economy shows farming as the key corridor for the economy and as head of the foreign exchange. In the 1960s agriculture accounted for more than 80% of export earnings and wages, but over the years about 65% of economic growth deteriorated.

In 1970% GDP agriculture and 34% GDP agriculture (Daramola,2004)) were approximately 50 percent in 2003. Currently agriculture is 41% in the actual economy, while crude oil is 13 The share of agriculture in the GDP is roughly 50% in 1970 and 34% in 2003. (Daramola, 2004).currently, 41% of the actual industries are agricultural, while 13% is crude oil.. Though agriculture is no longer the main contributor to Nigeria’s GNP and leading foreign-exchange income due to phenomenonic development of the oil sector as a whole.

Agriculture also predominates as regards jobs and connections with the rest of the economy, as noted by Abayomi (1992). Agriculture is a leading industry for the vast majority of Nigerians, with two thirds of the workforce, while accounting for 1/3 of GDP. (Agro-Ind, 2002). in the early 1970s, the rise of the Nigerian oil industry led to considerable systemic shifts in the economy. Public spending has grown in response to the oil boom and has promoted several other economic activities: infrastructural development; new institutions are being created, established institutions have expanded and consumer products are being imported. These advances have been favoured in the appreciation of the value of naira (Dutch disease), but there has been no comparable growth of commercial agricultural goods (Kwanashie et al., 1998; J. Olusi and M. A. Olagunju, 2005; A.T. Edun, 2012).The energy demand for agricultural production lies largely with human and animal forces. Proof of the use of petroleum products has been recorded for agricultural production. This limited yet important compared to human and animal power has been shown by the use, for agricultural mechanized operations, of motorized water and diesel-powered tractors (Sambo,2005). In the meantime, a strong and productive agriculture sector will enable a country to feed its rising populations, create jobs, trade and supply industries with raw materials.Because of their multifunctional existence, agriculture has a multiplying impact on the socioeconomic and industrial fabric of every country.


Nigeria is one of the pricing countries of its domestic oil is increasing since the seventies (Adenikinju, 2012). This is because Nigeria still imports petroleum products in order to meet its domestic demand in addition to three main refineries. The downstream crisis in Nigeria’s petroleum industry was thus a huge problem for most citizens. This is because the country’s relentless rise in fuel prices was due not just to the vandalism of bunkers, oil spills and the actions of some sellers, but also to the inefficiencies in refineries. This has an effect on the economy of the country on constant fuel supply shortages that contribute to environmental and economic problems.

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The discovery of crude oil has had a positive and detrimental effect on Nigeria’s farm output. This can be seen on the negative side with regard to the populations of surrounding areas where petroleum wells are used. Any of those populations also endure environmental destruction, leading to a deprivation, mainly a subsistence, of agricultural produce. It influences other social and economic aspects as well.hence this study seeks to critically analyse the implication of fuel hike on food production and supply


The following are the primary objectives

  1. To investigate the causes in the hike of fuel prices in Nigeria
  2. To investigate if the causes in the hike of fuel prices affect agriculture and food production in Nigeria
  3. To investigate how much it has affected the economy of the nation


  1. What are the causes in the hike of fuel price in Nigeria ?
  2. Does these causes in the hike of fuel price affect agriculture and food production in Nigeria ?
  3. How much of an effect has it been to the economy of the nation ?


This study will be of great significance to the government as the navigate ways on how to curb the menace of the hike in fuel prices.this study will also serve as a reference material to student and researchers who may want to carry out further research on this study


This study will focus on the implication of fuel hike in food production and supply in Nigeria and the intending harm it will do in the future.the resident of Lagos state will be the sample respondent to this study


The major limitation the researcher encountered while carrying out this research work were the issues of finance,unavailability of materials and time factor to combine both research work and academic work.


FUEL HIKE: This is a sudden or large increase in the price,rates and quantity of fuel

FOOD PRODUCTION: This is a process of preparing food by converting raw materials into finished products in the home or food processing industries


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