Foreign Direct Investment in Nigeria; Efficiency Differentials of Foreign and Local Farms in Edu Local Government Area of Kwara State

Abstract

The relationship between agricultural investments in terms of inflows from Foreign Direct Investment (FDI) and Agricultural productivity in Nigeria cannot be over emphasized. Productive Performances of the New Nigerian farmers were measured vis-a vis communal farming in Edu Local Government of Kwara State. The entire 15 foreign commercial farmers present in the area were enumerated, while for the local farmers, the first stage sampling involved the random sampling of 6 villages constituting the displaced and non-displaced farmers surrounding the foreign initiated farms. Most of the displaced communities have been adequately relocated and compensated. From each of these 6 villages a random sample of 15 farmers was selected to make a total sample size of 90 local farmers. This research dealt with those farmers who planted rice, maize, yam and melon. It was discovered that 82% of the farmers planted maize, 76% planted yam, 60% planted rice and 78% planted melon. On the other hand, 80, 40, 70, 30 and 40% of the foreign farmers planted maize, groundnut, soya beans, cowpea and rice, respectively. From the study, the mean output of communal farming is 5,511MJ/15,000 kg per annum with minimum and maximum values of 874 and 12,722MJ/15,000 kg per annum. This figures when compared with the mean, minimum and maximum values of the Nigeria farmers on the basis of output in MJ/ha/annum is larger and thus attributed to number of cropping seasons practiced in communal farming.