Analysis of Comparative Advantages and Policy Protection on Tea Production in Nigeria

Abstract

The study was carried out to analyses the comparative advantage and policy protection on tea production in Nigeria. Primary data was collected through the use of structured questionnaires administered through Open Data Kit (ODK). Policy Analysis Matrix (PAM) was used in determining the comparative advantage and effect of policy on tea production. A budgetary analysis was prepared to estimate the cost of inputs and output and eventual comparative advantage and policy protection on tea production in Nigeria. Policy indicators such as Domestic resource cost (DRC) and Social cost Benefit (SCB) were utilized in evaluating comparative advantage while indicators such as Nominal protection coefficient (NPC), Effective protection Coefficient (EPC) and Profitability coefficient (PC) were used for assessing policy protection on tea production. The results from the analysis showed that Nigeria has a comparative advantage in tea production, and can produce tea for export; and earn foreign currency thereof. The study concluded that Nigeria has a comparative advantage in the production of Tea and it can produce for export. The present agricultural policy of Nigerian government does not provide incentives to production.