Question on: JAMB Economics - 2004
Government's involvement in agricultural business in Nigeria is most manifested in the
A
establishment of farm settlements in each state of the federation
B
establishment of credit guarantee scheme for small-scale farmers
C
formation of farmers' cooperative societies
D
procurement and distribution of fertilizers
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Correct Option: D
The most significant manifestation of the Nigerian government's involvement in agriculture among the options provided is the establishment of credit guarantee schemes for small-scale farmers. Here's why:
- B. establishment of credit guarantee scheme for small-scale farmers: This directly addresses a major constraint faced by farmers: access to finance. By guaranteeing loans, the government encourages financial institutions to lend to farmers who might otherwise be considered too risky. This facilitates investment in inputs, technology, and expansion, significantly impacting agricultural productivity.
Other options:
- A. establishment of farm settlements in each state of the federation: While farm settlements were a government initiative, their impact has been limited and not as widespread or consistently effective as credit schemes.
- C. formation of farmers' cooperative societies: Supporting cooperative societies is beneficial, but
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