Effect of Income Diversification on Poverty Reduction and Income Inequality in Rural Nigeria: Evidence from Rice Farming Households

14 Pages Posted: 10 Feb 2013

See all articles by Bola Amoke Awotide

Bola Amoke Awotide

University of Ibadan - Department of Agricultural Economics

Taiwo Timothy Awoyemi

University of Ibadan - Department of Agricultural Economics

Aliou Diagne

Africa Rice Center - Impact Assessment Unit

Florent-Medagbe Kinkingnihoun

Africa Rice Centre - Impact Assessment and Policy Unit

Vivian Ojehomone

National Cereal Research Institute (NCRI)

Date Written: 2012

Abstract

The desire to increase household income and insure against agricultural production risk has led rural households to increasingly diversify their income sources. Yet the potential roles of income diversification on poverty reduction particularly among the rural farmers have not been adequately examined in Nigeria. Therefore, in order to fill this gap and complement other studies on income diversification, this study examined the effect of income diversification on poverty reduction among the rice farming households in Nigeria. Using the primary data collected from 600 randomly selected smallholder rice farmers in Nigeria and adopting the Foster-Greer-Thorbecke (FGT) poverty measures the study observed that farmers that participated in Non-Farm Wage Employment (NFWE) were better off than those in the Farm Related Employment (FRE) and the Non-Farm Self Employment (NFSE). The findings of this study revealed that diversification of income should be given more focus and attention by policy makers in the efforts to reduce poverty among smallholder farmers in rural Nigeria. Farmers should be encouraged to participate more in farmers’ organization, the issue of access to land in the rural areas should be thoroughly examined and gender equity in access to productive resources should also be looked into.

Keywords: Income, Diversification, Poverty, Farmers, Nigeria

Suggested Citation

Awotide, Bola Amoke and Awoyemi, Taiwo Timothy and Diagne, Aliou and Kinkingnihoun, Florent-Medagbe and Ojehomone, Vivian, Effect of Income Diversification on Poverty Reduction and Income Inequality in Rural Nigeria: Evidence from Rice Farming Households (2012). OIDA International Journal of Sustainable Development, Vol. 5, No. 10, pp. 65-78, 2012. Available at SSRN: https://ssrn.com/abstract=2214159

Bola Amoke Awotide (Contact Author)

University of Ibadan - Department of Agricultural Economics ( email )

Nigeria

Taiwo Timothy Awoyemi

University of Ibadan - Department of Agricultural Economics ( email )

Nigeria

Aliou Diagne

Africa Rice Center - Impact Assessment Unit ( email )

01 B.P. 2031
Cotonou Benin
South Africa

Florent-Medagbe Kinkingnihoun

Africa Rice Centre - Impact Assessment and Policy Unit ( email )

Cotonou
Benin

Vivian Ojehomone

National Cereal Research Institute (NCRI) ( email )

Plot 223D, Cadastral Zone B6 Mabushi
Wuse, Abuja 5026
Nigeria

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