STATE CAPACITY AND AGRICULTURAL PRODUCTIVITY IN SUBSAHARAN AFRICA: THE ROLE OF SUBSIDY PROGRAMMES IN NIGERIA

Abstract

Agriculture remains central to economic development in Sub-Saharan Africa, contributing significantly to Gross Domestic Product (GDP) and employment. Despite its importance, the sector is constrained by low productivity and inefficient resource allocation. In response, governments have implemented various agricultural subsidy programmes to boost output. However, yields in the region remain persistently low. This paper argues that a critical “missing link” in explaining this outcome is state capacity. It examines the relationship between state capacity and agricultural productivity in Sub-Saharan Africa, with specific focus on Nigeria’s subsidy programmes. The objective is to assess how state capacity shapes the effectiveness of subsidy interventions and, by extension, agricultural productivity. The study adopts System Theory and Dependency Theory as analytical frameworks. The System Theory emphasizes the role of institutional coordination, policy implementation, and feedback mechanisms in determining outcomes, while Dependency Theory highlights how historical and structural factors can weaken state institutions and development capacity. The paper relies on secondary data from government reports, policy documents, and academic literature. Findings indicate that where administrative and institutional oversight is strong, subsidy programmes have the potential to improve input access and increase agricultural yields. In contrast, in contexts with weak state capacity, the benefits of subsidies are eroded by mismanagement leakages, and high input costs. The paper concludes that agricultural productivity in Sub-Saharan Africa is less constrained by resource scarcity than institutional capacity. It recommends strengthening of governance and institutional frameworks, ensuring transparency in subsidy allocation and distribution, and establishing independent oversight mechanisms to enhance accountability and program effectiveness.