Rural Livelihood Diversification in Nigeria: Implications for Labour Supply and Income Generation

Authors: 
A. O. Iraoya, A. C. Isinika
DOI Number: 
http://doi.org/10.31039/jomeino.2020.4.3.4
Abstract: 
This study assessed how rural households in Nigeria diversify their livelihoods, using data from the 2015/16 Nigeria General Household Survey. The degree of livelihood diversification was measured using the Simpsons Index of Diversity (SID), and the income shares obtained by the households from their livelihoods was estimated using the mean of income shares approach. Empirical findings of this study indicates that livelihood diversification is becoming the norm among rural households. Although there is a higher labour supply in the agricultural sector, but the households earn a lower mean income from agriculture, and a low share of farm income relative to off-farm income. This suggests that subsistence mode of farming prevails and rural households in Nigeria earn more income from off-farm than from farm livelihoods.
Keywords: 
Livelihood Diversification, Labour Engagement, Nigeria, Share of Income.
Full Text: 
File download
References: 

Ahmed, M., and Goodwin, B. (2016). Agricultural mechanization and non-farm labor supply of farm households: evidence from Bangladesh. In: Agricultural and Applied Economics Association Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts.

Ahmed, M. T., Bhandari, H., Gordoncillo, P. U., Quicoy, C. B., and Carnaje, G. P. (2018). Factors affecting extent of rural livelihood diversification in selected areas of Bangladesh. SAARC Journal of Agriculture, 16(1), 7-21.

Almeida, A. N., and Bravo-Ureta, B. E. (2019). Agricultural productivity, shadow wages and off-farm labor decisions in Nicaragua. Economic Systems, 43(1), 99-110.

Alobo, L S. H. and Bignebat, C. (2017). Patterns and determinants of household income diversification in rural Senegal and Kenya. Journal of Poverty Alleviation and International Development 8(1), 93-126.

Amare, M. and Shiferaw, B. (2017). Nonfarm employment, agricultural intensification, and productivity change: empirical findings from Uganda. Agricultural Economics 48(S1), 59-72.

Bryceson D. F. (2002). Multiplex livelihoods in rural Africa: recasting the terms and conditions of gainful employment. The Journal of Modern African Studies 40 (1), 1-28.

Cooke J. G. and Jonathan, E. (2016). Tracing the Roots of Nigeria’s Agricultural Decline. Center for Strategic and International Studies, Washington, D.C. [https://www.csis.org/analysis/tracing-roots-nigerias-agricultural-decline] site visited on 6/11/2018.

Davis, B., Di Giuseppe, S., and Zezza, A. (2017). Are African households (not) leaving agriculture? Patterns of households’ income sources in rural Sub-Saharan Africa. Food Policy 67, 153-174.

Djido A. I. and Shiferaw, B. A. (2018). Patterns of labor productivity and income diversification – Empirical evidence from Uganda and Nigeria. World Development 105, 416-427.

Ellis, F. (1998). Household strategies and rural livelihood diversification. Journal of Development Studies 35(1), 1-38. [http://dx.doi.org/10.1080/00220389808 422553] site visited on 10/06/2018.

Ellis, F. (2000). Rural Household and Diversify in Developing Countries; Oxford University Press: Oxford, UK, 1-15.

Gautam, Y. and Andersen, P. (2016). Rural livelihood diversification and household well-being: Insights from Humla, Nepal. Journal of Rural Studies 44, 239-249.

Harris-Coble, L. (2017). Income Diversification and Seasonality for Smallholder Farmers in Kilosa, Tanzania. A Doctoral Dissertation submitted for Award of PhD at University of Florida. 141pp.

International Crisis Group (2017). Herders against Farmers: Nigeria’s expanding Deadly Conflict. Africa Report No252 [https://www.ecoi.net/en/file/local/1410340/ 1226_1505986246_252-nigerias-spreading-herder-farmer-conflict.pdf] site visited on 7/4/2018.

Losch, B., Freguin-Gresh, S. and White, E. T. (2012). Structural Transformation and Rural Change Revisited: Challenges for Late Developing Countries in a Globalizing World. World Bank Publications.

Mathenge, M. K., and Tschirley, D. L. (2015). Off‐farm labor market decisions and agricultural shocks among rural households in Kenya. Agricultural economics, 46(5), 603-616.

Msoo A. A. and Goodness C. A. (2014). Diversification and farm household welfare in Makurdi, Benue State, Nigeria. Development Studies Research. An Open Access Journal 1(1), 168-175, DOI: 10.1080/21665095.2014.919232.

Oseni, G. and Winters, P. (2009). Rural nonfarm activities and agricultural crop Production in Nigeria. Agricultural Economics 40(2), 189-201.

Pritchard, B., Vicol, M., and Jones, R. (2017). How does the ownership of land affect household livelihood pathways under conditions of deagrarianization?‘Hanging in’,‘stepping up’and ‘stepping out’in two north Indian villages. Singapore Journal of tropical Geography, 38(1), 41-57.

Rigg J. (2006). Land, farming, livelihoods, and poverty: rethinking the links in the rural south. World Development 34 (1), 180–202

Ssozi, J., Asongu, S. and Amavilah, V. H. (2019). The effectiveness of development aid for agriculture in Sub-Saharan Africa. Journal of Economic Studies 46(2), 284-305.

Townsend, R., Ronchi, L., Brett, C., and Moses, G. (2018). Future of Food: Shaping the Food System to Deliver Jobs [https://openknowledge.worldbank.org/handle/10986/26506] site visited on 23/10/2019

Verkaart, S., Mausch, K. and Harris, D. (2018). Who are those people we call farmers? Rural Kenyan aspirations and realities, Development in Practice 28(4), 468-479.

Yeboah, F. K., and Jayne, T. S. (2018). Africa’s evolving employment trends. The Journal of Development Studies, 54(5), 803-832.

Page: 
64-74
Content Status: 
Published