COMPETITIVENESS OF NIGERIAN RICE AND MAIZE PRODUCTION ECOLOGIES: A POLICY ANALYSIS APPROACH

Abstract

The Nigerian rice and maize sectors are faced with decreasing supply and increasing demand as rice and maize have taken a strategic place of other staples leading to excessive importation and increasing government intervention. This study therefore assesses the competitiveness of Nigerian rice and maize production ecologies using the policy analysis matrix (PAM) on a sample of 122 farmers. Results of the PAM revealed that outputs from the production ecologies are taxed. This is further confirmed by the Effective protection coefficient (EPC) and Subsidy ratio to producers (SRP) values, however, the production ecologies are subsidized on the use of tradable inputs. The production ecologies show a strong competitiveness at the farm level (under irrigated rice, upland rice and upland maize) and a strong comparative advantage. Sensitivity analysis indicated that a 50 percent increase in output and a 13.3 percent depreciation of the domestic currency will increase competitiveness and comparative advantage of rice and maize production in all ecologies. The study recommends that government should ensure a level of policy stability in the rice and maize sectors, assist farmers with irrigated water scheme to ensure constant water supply, and increase the level of output through provision of improved seed varieties.

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