36 NIGERIA DIVERSIFICATION AGENDA AND ECONOMIC GROWTH: THE ROLE OF AGRICULTURE NORA F. IYANG Department of Economics University of Uyo, Uyo Nora_iyang@yahoo.com +2348036744284 UBONG E. EFFIONG Department of Economics University of Uyo, Uyo ubongeffiong3@gmail.com; +2347060490254 and JOEL I. OKON Department of Statistics Central Bank of Nigeria, Uyo Joel1914esiere@gmail.com ; +2348162542325 Abstract The paper examined the role of agriculture in promoting the diversification agenda and economic growth in Nigeria. The study employed annual time series data obtained from Central Bank of Nigeria statistical bulletin and World Bank Data base for the period 1986 to 2018. The study employed the Phillip-Peron unit root test, ARDL Bounds test for cointegration, and the error correction mechanism. The result of the unit root test revealed that the variables were stationary at mixed order of integration (levels and first difference), while the ARDL Bounds test revealed the presence of a long-run relationship. Findings of the study further revealed that all the components of agricultural production – crop production, livestock production, forestry, and fisheries – exerted a positive and significant long-run effect on economic growth, with livestock production exerting the greatest effect within the study period. The error correction mechanism indicated that 71.07% of the short-run disequilibrium is corrected in the long-run. The paper recommended that for the country to strongly diversify, government needs to invest aggressively on the agricultural sector so as to reap its full potentials. Keywords: Economic Growth, Lewis Model, Agriculture, ARDL, ECM, Diversification Introduction One of the key goals of macroeconomic policies of government is the actualization of economic growth and development. Scholars argue that the Agricultural sector is critical to the attainment of this core macroeconomic goal as espoused in the literature on the subject matter. Agriculture is often regarded as a key driver of brainspecresearch@gmail.com www.brainspecresearch.com Nora F. Iyang, Ubong E. Effiong and Joel I. Okon Social Sciences and Management International Journal Vol. 1, Issue 2, October 2020