Asian Basic and Applied Research Journal

The research paper examines the causal relationship between government expenditure and agricultural sector productivity in Nigeria for the period, 1986-2019. Using the Granger causality tests, the study found that agricultural employment cause government agricultural expenditure with a feedback. As for agricultural output and exports, government agricultural spending has no causal links with the two variables. It means that government expenditure does not have causal relationship with agricultural output and exports. Meanwhile, it was agricultural employment that causes government agriculture expenditure. There is need to encourage and motivate the young unemployed groups especially in the rural and semi-urban areas to become gainfully employed in agriculture. This will assist to provide employment opportunities, reduce the incidence of vices and illegal adventure and consequently increase agricultural performance as a result of the rise in agricultural employment.