food commodities
market integration

How to Cite

Onubogu, Onyinyechukwu H., & Dipeolu, Adewale O. (2021). REGIONAL MARKET INTEGRATION: A PANACEA TO INCREASING PRODUCTIVITY AND INCOME IN NIGERIA. Journal of Agricultural Economics, Environment and Social Sciences, 7(1), 138-151. Retrieved from


One of the greatest arguments about food commodities markets in Nigeria is that some of the
markets are inefficient because trade flows are mostly regional based. This study examined the
extent and degree of integration amongst Yam tuber and Cowpeas markets in six states from the
six geopolitical zones of Nigeria from 2000 - 2018 using Johansen Co-integration, Granger
Causality, Vector error correction model and Variance Decomposition methodologies. We confirm
that the markets are integrated, and have various degrees of price leadership. The speed of
adjustment to equilibrium ranged from two months [Niger (β = -0.62, p<0.05)] to two years [Oyo
(β = -0.05, p<0.05)] in yam market; four months [Niger (β = -0.32, p<0.05)] and nine months [Oyo
(β = -0.12, p<0.01)] in the brown-cowpea market; and from nine months [Adamawa and Niger (β
= - 0.12, p<0.05)] to one year [Oyo (β = -0.09, p<0.01)] in the white-cowpea market. The price
shocks on the markets were found to be mainly due to specific market functioning. The implication
of the finding is that the markets, if supplemented with more open policy initiatives, can play a
more effective role in increasing productivity and income of both producers and marketers.



Adejobi, A. O. (2005). Cowpea marketing in Maiduguri, Borno State; Investigations on building

a food marketing policy evidence base in Nigeria; A research programme funded by the UK

Department for International Development, February, 2005.

Adeoye, I., Dontsop Nguezet, P., Badmus, M., & Amao, I., (2011), Price transmission and market

integration of Banana and Plantain in Oyo State, Nigeria. ARPN Journal of Agricultural &

Biological Science, 6(5), 18

Akinseye, U. O., (2011). “Agricultural Financing and Performance in Nigeria: A Case study of

the Agricultural Credit Guarantee Scheme (ACGS)”. Research report presented in partial

fulfilment of the requirements for the degree of Master of Development Finance at the University

of Stellenbosch.

Akpan, S. B., Udoh, E., & Udo, U. (2014). Monthly price analysis of Cowpea (Beans) and Maize

in Akwa Ibom State, Southern Nigeria; International Journal of Food and Agricultural

Economics, 2 (2), 65-86.

Bergh, K., Orozco, P., Gugerty, M., & Anderson, C., (2012). Yam value chain: Nigeria; Evans

School Policy Analysis Research (EPAR) brief No 207, December 17, 2012.

Debaniyu, F. (2013). Price integration of Cowpea retail markets in Niger State, Nigeria” Academic

Research International, 4 (3), 264–277

Esposti, R. & Listorti, G. (2011). Agricultural price transmission across space and commodities

during price bubbles". Proceeding of the International Congress of European Association of

Agricultural Economists (EAAE); Change and Uncertainty Challenges for Agriculture, Food and

Natural Resources, Zurich. Ag.econ.114338. August 30 – September 2.

Ewan, R., Nwuneli, N., Spencer, H., & Humphrey, J., (2014). Mapping Value Chains for Nutrient-

Dense Foods in Nigeria; Institute of Development Studies (IDS) England Evidence Report No 65,


Food and Agricultural Organisation (FAO) (2008): Markets, prices, food situation and prospects

for Benin, Niger and Nigeria, Based on CILSS/FAO/FEWSNET/SIMA/WFP. Joint market

assessment mission to Benin, Niger and Nigeria 6. Assessed October

Ikudayisi, A. & Salman, K. (2014) Spatial Integration of Maize Market in Nigeria – A Vector

Error Correction Model. International Journal of Food and Agricultural Economics ISSN 2147-

2 (3) 71-80

International Institute of Tropical Agriculture (IITA) (2013). Healthy yam seed production, February 2013. Assessed May, 2019

Johansen S., (1988). Statistical Analysis of Co-integration Vectors. Journal of Economic

Dynamics and Control 12: 231-254.

Kormawa, P. M., Chianu, J. N., and Manyong, V.M. 2002. Cowpea Demand and Supply Patterns

in West Africa: The Case of Nigeria; International Institute of Tropical Agriculture (IITA), Ibadan,

– 386 January.

Mishili, F., Musa Shehu, J., Marfo, S., Chergna, M., & Loewenberg-DeBoer, J. (2007). “Consumer

preferences for quality characteristics along the Cowpea value chain in Nigeria, Ghana and Mali”.

Working Paper #06-17 January 2007.

Moghaddasi, R., (2008). Price transmission in horticultural products markets, Case of Date and

Pistachio in Iran. International Conference on Applied Economics– ICOAE, 663-669.

NBS / LSMS (2012). LSMS – Integrated Surveys on Agriculture General Household Survey Panel


NISER (Nigerian Institute of Social and Economic Research, Ibadan) (2008), The Global

Food Crisis: Impact and Policy Implications in Nigeria; Research Report Submitted by

NISER to the National FADAMA Development Office, Abuja, February, 2008

Nyongo, L. (2013). Maize price differences and evidence of spatial integration in Malawi: The

case of selected markets. 6th International Conference of Agricultural Statistics (ICAS VI): Rio De

Janeiro, Brazil, 23-25 October.

Ojiako, I., Ezedinma, C., Okechukwu, R., & Tarawali, G. (2014). Spatial Integration and Price

Transmission in Selected Rural and Urban Markets for Cassava fresh roots in Nigeria. Journal

of Economics and Sustainable Development 5(17): 2222-2855

Okoh, R., & Egbon, P., (2005). The integration of Nigeria's rural and urban foodstuffs markets.

African Economic Research Consortiums (AERC) Research Paper 151, Nairobi.

Onubogu, O.H & Dipeolu, A. O. (2019). Agricultural Price Transmission across space and time:

the case of Cowpea and Yam markets in Nigeria. 2019 Sixth International Conference of African

Association of Agricultural Economists, Abuja, Nigeria; no 181. September 23-26

Onubogu, O. H. (2020). Price variability, Co-integration and Leadership in Nigerian Yam market.

South Eastern Journal of Research and Sustainable Development). March 3(1): 122 – 149

Vavra, P. and Goodwin, B. 2005. Analysis of Price Transmission along the Food Chain, OECD

Food, Agriculture and Fisheries Working Papers, No. 3.


Download data is not yet available.