Literature Review and Socio-economic Analysis of Seed and Fertilizer Availability and Utilization in Hybrid Maize Production Under the Nigerian Deregulated Marketing and Subsidy Withdrawal Policy

Abstract

Maize is one of the most important cereals grown for human and livestock consumption in Nigeria. In the past its cultivation was restricted mainly to backyards and along lowland areas where there were accumulation of natural nutrients. The introduction of artificial fertilizers coupled with improved seed varieties and crop protection measures, have contributed to spread its production into marginal areas. Although maize production has expanded in Nigeria, a deficit still exists between supply and demand which can be bridged by adoption of hybrid maize varieties. The potential of hybrid maize can, however, be realized only with high levels of fertilizer and good management. Prior to 1998 the marketing of seed and fertilizer were regulated and highly subsidized by Government. In 1998, the Nigerian government deregulated the fertilizer m arket and withdrew the price subsidies. This paper provides the literature and socio-economics analysis of seeds and fertilizer availability in hybrid maize production under the deregulated system. Both secondary and primary sources of data have been used. The analysis of the primary data shows that, while 80 percent of the respondents reduced the hectarages previously put under hybrid maize production, 39 per cent shifted to local varieties and other crops that were less responsive to high levels of fertilizers. A probit analysis revealed that availability of hybrid seeds and fertilizer, cost and extension contact were the most important significant variables affecting the adoption of hybrid maize. Some recommendations to ameliorate the problems are suggested.