ASSESSNG VOLATILITY IN STAPLE CROPS PRICES IN THE PRE- AND POST- LIBERALIZATION ERA IN NIGERIA
No Thumbnail Available
Date
2019
Authors
AJIBADE, Toyin Benedict
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Marketing, Faculty of Management Sciences, University of Ilorin, Ilorin, Nigeria
Abstract
Agricultural liberalization in Nigeria saw to the abolition of commodity boards with the government also withdrawing from the markets whilst allowing for market forces to set prices. One phenomenon that has however persisted over the years is volatility in the prices of food commodities which has grossly impaired attainment of food security. With the recent shift in focus to agriculture in Nigeria, there have been clamours for reintroduction of the commodity
boards. While some are in doubt of the efficacy of such boards due to the entrenched corruption and tendencies for mismanagements that may usurp their essence, others support and advocate that re-introducing the board will be providing a structure that supports price stability. The study investigated volatility in the prices of three key crops in Nigeria – maize, sorghum and yam in the pre- and post-market liberalization eras. Using data on annual producer prices of the food commodities from 1970-2017 sourced from the Food and Agricultural Organization statistical database for the United Nations, the study examined volatility in the food prices and disaggregated into pre- and post-liberalization eras. Analytical procedure involved data detrending, standard deviations and independent sample t-test. Our result showed that volatility in the prices of all three crops examined astronomically increased in the post-liberalization era. Variations in prices have tended to be permanent in nature rather than transitory. Maize prices were the most volatile in the period under review. The study therefore recommended de-liberalization of agricultural markets provided a robust framework is in place to support the workability of the system.
Description
Keywords
Citation
Ajibade, T.B. (2019). Assessing Volatility in Staple Crops Prices in the Pre- and Post-Liberalization Era in Nigeria. Ilorin Journal of Marketing 6(2): 95-110, Published by Faculty of Management Science, University of Ilorin, Nigeria. ISSN 2465-7417