Forms and Determinants of Rural Livelihoods Diversification in Ogun State, Nigeria

Abstract

Diversification is a norm in every economy, particularly in ruralAfrica, where farming alone rarely provides sufficient income. This study examines the forms and determinants of nonfarm livelihoods among 320 rural households in Ogun State, Nigeria. Results show that nonfarm livelihoods contribute 63 % of household income. The Simpson Index of Diversity shows moderate diversification (0.42) indicating a complementary role of farm and nonfarm activities. Education, household size, and income were significant predictors of diversification. Improving the capabilities of rural people through capacity building, credit, and broad-based development will increase participation in non-farm income and equally improve investment in agriculture.

Transforming river basins: Post-livelihood transition agricultural landscapes and implications for natural resource governance

“…Transnational gold-mines have modified land relations throughout the Cajamarca region of Peru by altering tenure institutions, land values and landuse patterns (Bury, 2005). Similar changes to NR relations are reported since the 1980s from many of the traditionally agricultural African economies such as Tanzania, Botswana and Nigeria due to expansion of artisanal and large-scale mining of gold, diamond and oil (Bryceson et al, 2012;Fabusoro et al, 2010;Gwebu, 2012). In addition to facilitating investments over land, the state also stakes claim on rural lands and resources for developmental projects that range from industrial development to infrastructure expansions (Braun and McLees, 2012).…”

“…Persistent engagement in subsistence-oriented agricultural practices despite prevalent off-farm incomes is seen as a powerful form of resilience of smallholder cultivators of the countries of the Global South (Fabusoro et al, 2010;Gray, 2009;Isakson, 2009;Jokisch, 2002;Steward, 2007;Van der Ploeg and Jingzhong, 2010). For instance, the African landscape of today is stated to be a crafting together of non-agricultural occupations with continued subsistence agriculture (Batterbury, 2001;Bouahom et al, 2004).…”

“…(Batterbury, 2001;Liu et al, 2010;McKay, 2003;Woods, 2007;Yarnall and Price, 2010;Zimmerer, 2014). On a physical plane, agricultural landscapes are recognized to be fragmented, isolated and under constant fluctuation along with various emergent uses as diversification and off-farm incomes intensify (Ellis, 2000;Fabusoro et al, 2010;Liu et al, 2014;Su et al, 2011;Zoomers, 2002). The multiple uses of resources within both agricultural and non-agricultural realms have given rise to competitive tensions in resource consumption (Van der Ploeg and Jingzhong, 2010).…”

Linkage Effects of Rural Non-Farm Income Diversification on Poverty Reduction among Farm Households in Southeast, Nigeria

“…In Nigeria, nonfarm contributes up to 63% of household income (Fabusoro et al, 2010). IFAD (2009) posited that non-farm income is important to the rural poor as, farm income obtained by poorer households is barely enough to provide family needs due to landlessness or because they own/lease little farm land.…”

“…This view is also shared by many other authors such as Reardon et al (1992) and (2000). Fabusoro et al (2010) defined livelihood diversification as attempts by people to pursue new means in order to increase household income and reduce risks, which differ sharply by the degree of freedom of choice, whether to diversify or not and the reversibility of the outcome. Ellis (1998) states that livelihood diversification describes a process by which households participate in a wide variety of income activities and social support capabilities as survival strategies for risk Despite the high poverty rates in rural communities, the rural sector provides the bulk of overall employment in Nigeria.…”