Abstract

M. A. Badmus

This study examined the impact of market liberalization on maize production in Nigeria. Time series data for a 29-year
period (1970 - 1998) were collected. Zellner’s seemingly unrelated regression (SUR) model was used as the estimation
technique. Output of maize was found to be more during liberalization. Fertilizer price and hectarage planted to maize
were the significant variables affecting maize output. Fertilizer consumption was found to be affected by hectarage
planted to maize and crop loan. Retail price of fertilizer was determined by the factory gate and world prices of
fertilizer. For hectarage planed to maize, crop loan, government expenditure, and the relative price of maize to millet,
were the significant explanatory variables. For output of maize and hectarage planted to maize, the dummy variable (0,
for pre-liberalization and 1 for liberalized period) were significant. This means that market liberalization did affect
these variables. However for fertilizer consumption and fertilizer price, the dummy variables were non-significant and
this implied that market liberalization had no impact on fertilizer consumption and fertilizer price. Conclusion is that
market liberalization if properly implemented had a positive impact on maize production in the country.