Abstract
This study examined the relationship between agricultural sector development and unemployment
in Nigeria. Time series data were sourced from Central Bank of Nigeria Statistical Bulletin from
1990-2023. Four hypotheses were formulated to explore the relationship between agricultural
sector development and unemployment in Nigeria. The study modeled unemployment rate as the
function of agricultural productivity proxy agaric sector gross domestic product to total gross
domestic product, agricultural sector finance proxy by agricultural credit grantee scheme to gross
domestic product , agricultural fiscal budget as percentage of gross domestic product and
agricultural sector export as percentage of gross domestic product. The study employed panel
data Ordinary Least Square Methods, unit root test, cointegration test, granger causality test and
vector error correction were used as data analysis methods. The unit root test results, using the
ADF unit root test suggest found that the variables are stationary at difference and integrated in
order I (1). The cointegration test found a long-run relationship between agricultural sector
development and unemployment. The granger causality test found unidirectional causality from
agricultural productivity to unemployment rate while other variables have no causality. Vector
error correction found that positive and significant relationship while agricultural financing,
fiscal budget and export has negative relationship with unemployment. 73 percent changes on
unemployment rate in Nigeria were explained by agricultural variables. From the findings, the
study concludes significant relationship between agricultural sector development and
unemployment in Nigeria and recommends that the government should remove every constraint
to agricultural policy effectiveness, such as policy instability, policy inconsistencies, narrowbased policy formulation, poor policy implementation and weak institutional framework for policy
coordination. The government of Nigeria should develop policies that could improve agricultural
activities in Nigeria. These policies could increase credit policies for agricultural purposes,
strengthening of the agricultural product marketing board to encourage farmers. This study
identified the agricultural fiscal budget as a determinant of employment. Therefore, government
should intensify more effort in creating an enabling environment for increase in budget to agricultural sector in Nigeria and the stringent conditions and prerequisite required to be met by
farmers to participate on the agricultural credits should be reviewed and made accessible to
farmers.