Economic Efficiency of Maize Production in Northern Nigeria: The Analyses of Technical and Allocative Efficiencies Using Stochastic Frontier Models

Maize is a staple food crop for most sub-Saharan Africans of which Nigeria is inclusive with per capital kg/year of 40. Maize is termed the "golden" crop plant because every part of it can be used for food, feed or as commercial ingredient for industries. The demand for maize as a result of various uses shows that a domestic demand of 3.5 million metric tonnes outstrips a supply production of 2 million metric tonnes. Low capitalization, price fluctuation and inefficiencies of resource allocation and input combination are the identified problems of low maize production in Nigeria. Data generated from questionnaires were analyzed using Stochastic Frontier cost and production functions. Parameters of estimate for cost function indicated a positive relationship at 1 % significant level for fertilizer, seed and hired labour. Also, parameters of estimate for production function indicated positive relationship at 1 % significant level for fertilizer and family labour. Mean economic efficiency was 0.90. This work however recommended a 10 % improvement on the farmers' economic efficiency level by adopting the recommended management practices for maize production.