Analysis Of The Livelihood Diversification Among Farming Households In Mkpat Enin Local Government Area Of Akwa Ibom State

ABSTRACT

This  research work was aimed at analyzing rural livelihood diversification by farming households in Mkpat Enin Local Government Area in Akwa Ibom State. The specific objectives were to: describe the socio-economic  conditions of rural households in the study area, examine livelihood diversification strategies adopted  by male and female respondents in the study are, estimate the determinants of rural livelihood diversification in the study area. The hypothesis tested were: there is no significant difference in the level livelihood diversification between the male and female respondents in the study area: there is no significant difference in the level of  livelihood diversification among villages in the study area. A multi-stage sampling procedure was used in the study to arrive at a sample size of 180. Data were collected with structured questionnaires and analyzed using descriptive and inferential statistics (cluster analysis, factor analysis, t-test, ANOVA and Mann Whitney U-test. The predominant livelihood diversification strategies adopted showed that rural households indeed engaged in multiple activities and relied on diversified income portfolios. Mann Whitney revealed U-test performed on male and female participation in livelihood activities further revealed that male dominated in palm Oil Production.Test of hypothesis Ho₁showed that there is a significance difference in the level of livelihood diversification between the male and female respondents in the study area. Test of hypothesis Ho₂ revealed that there is a significant difference in the diversification among villages in the study area. Among other recommendations, the study recommended improved instruments in basic infrastructure (access to water, electricity, good road network and communication services) which will play catalytic roles as they lay the basis for the flow of funds to the rural areas to be invested in farm and no-farm activities to create more opportunities.

Chapter One

Introduction

• Background of the Study

In Nigeria, several policies and programmes have been put in place to improve the productivity and hence income earning potentials of farmers in the rural areas. According to Ellis (2000) as cited an essential characteristics of rural farmers in developing counties is their adaptation ability to survive, and in an indicator that families are able to change their way of living due to circumstances that they face, especially strategic changes in their living and its features as well as their activities impact on the environment.

Owing to the major role of income diversification in stabilizing income and alleviating rural poverty, government and non-government agencies in Nigeria have generated high interest in promotion of livelihood diversification. For example, National Poverty eradication Porgramme micro and medium scale enterprise have provided massive infrastructural development, micro-credit schemes.

In Akwa Ibom State, the State’s potential for sustainable development remains unfulfilled. About 5% of the rural populations in the Niger Delta States are also faced with similar challenges (IFAD, 2002).

Diversification is the norm, very people collect all their income from only one source, hold all their wealth in the form of a single asset, or use their for just one activity. Multiple motives prompt households and individual to diversify assets, income and activities.

The first set of motive comprises what are traditionally termed “push factors”. They include: risk reduction, response to diminishing factor returns in any given use, such as family labour supply in the presence of land constraints driven by population pressure and land   holding fragmentation, reaction to crisis or liquidity constraints, high transactions costs that induce households to self-provision in several goods and services, etc.

The second set of motives comprises “pull factors perspective”. Diversification is driven by limited risk- bearing capacity in the presence of incomplete or weak financial systems that create strong incentives to select a portfolio of activities in order to stabilize income flows and consumption, by constraints in labour and land markets and by climatic uncertainty.

From the “pull factor perspective”, local engines of growth such as commercial agriculture or proximity to an urban area create opportunities for income diversification in production and expenditure and expenditure- linkage activities. The consequence of the ubiquitous presence of the above factors in rural Africa is widespread diversification.

Income diversification with respect to agrarian livelihood is the process of switching from low-value crops (stable food crops) to higher value crops (typically commercial crops) livestock and non- farm activities. High value of crops is regarded in terms of value per unit of weight. Diversification is a source of income growth i.e the increase in the number of sources of income or the balance among the different sources and thus a potential means of poverty reduction. The farm household motives for diversification as well as the opportunities available to them different significantly across settings and income group (Ashok, K., Mishra, K. E., Micheal, H., Charles, H., and Hiroki, U. 2010). Farm families play an important role in food security an sustainability. Haggblade, hazel and Peardon (2007) opined that traditional view that rural economics are purely agricultural is clearly obsolete as farming households across the developing world are earning an increasing share of their income from non- farm sources.

The land based livelihood of farming households is rapidly becoming unreliable for sustainability since the farm land no longer meet the requirement of household food security. In Akwa Ibom State, most rural household do not depend solely on farming for substance; hence livelihood diversification has been one of the most important sources of household sustainability (The International Fund for Agricultural Development. 2002).

Income diversification has been analyzed as a rational response by rural households due to lack of opportunities for specialization and was not initially considered the most desirable option. However, recent sides indicate that rather than promoting specializations with existing portfolios, upgrading them to argument income could be more realistic and relevant for poverty reduction. Diversification which has then become the norm is now put forward as one of the strategies rural households employ to minimize household income variability and to ensure a minimum level of income Adigum et al., 2011).

• Problem Statement

Akwa Ibom is the third state with the highest rate of 27.1% within the South-South Zone after Cross River State (31.2%) and Bayes State (32.5)

Eugene (2012) and National Bureau of Statistics (2011) reported that Akwa Ibom State has the second highest unemployment rate over 25.8% after Delta State in the South-South zone, but leads other states in the zone in terms of income generating opportunities.

Over the years, farm household diversification into supplementary activities has featured firmly on the agenda for research and development of rural livelihood as cited by Boons, (2005). Various studies by Ellis and Mdoe (2003). Lanjouw (2001) have concluded that involvement in supplementary activities is positively related to farm productivity and contributed to poverty alleviation. Household activity of livelihood diversification is widespread in rural Nigeria, and also in Akwa Ibom State yet it has not generated the expected economic growth of the local economy and poverty still persists. Rural households like those in Mkpat Enin LGA, continue to struggle with food insecurity.

In Akwa Ibom State, studies on livelihood conducted by Asa (2008) have illustrated various applications of poverty and oil spillage within the framework of livelihood analysis but little is done specifically on livelihood diversification pattern and farm household income diversification considering the large rural population of about 87.9% (national Population Commission, NPC, 2006).

Mkpat Enin is a Local Government Area blessed with abundant mineral deposits eg crude oil and gas. There are also forest reserves from which timber and palm produce are sourced. The people are basically, traders and farmers. Their other forms of livelihood may include hunting, fishing, craft/industry and trade. The major crops cultivated are yams, vegetables and oil palm. Oil was discovered in Ikot Akpa Ekop.

It is against this background that this study was envisaged to address the following research questions:

1. What are the socio-economic conditions of farming households in the study area which affect household income diversification?
2. What are the livelihood activities of rural households in the study area?

• What are the livelihood diversification strategies adopted by male and female respondents in the study area?

1. What are the livelihood assets of male and female respondents in the study area?
2. What are the major determinants of rural livelihood diversification in the study area?

• General Objectives

The general or main objectives of this study was to analysis the livelihood diversification   by farming households in Mkpat Enin Local Government Area in Akwa Ibom State.

• Specific Objectives of the Study

The specific objectives of the study were to:

1. Describe the socio- economic conditions of rural households in the  study area which affect.
2. Examine the livelihood activities of rural household in the study area.

• Examine the livelihood diversification strategies adopted by male and female respondents in the study area.

1. Examine livelihood assets of male and female respondents in the study area.
2. Estimate the determinants of rural livelihood diversification in the study area.

• Hypothesis  of the Study

The following null hypotheses were tested:

Ho1: There is no significance difference in the level of livelihood diversification between male and female respondents in the study area.

Ho2: There is no significance difference in the level of livelihood diversification among villages in the study area.

• Significance of the Study

This study is important and it is significant in the following ways:

1. It will contribute to the existing body of knowledge in development studies and practice on livelihood diversification analysis.
2. Communities participating in this research will be brought together to further explore the challenges confronting them.

• This study will enrich the knowledge of policy makers, researcher and of course those in academies especially in development studies and agricultural economics and extension.

1. It will serve as a model of what the situation in other religions with similar attributes will look like and as such provide vital planning inputs.
2. On a micro- level, the study will present as a critique of the stable development policies and contribute towards the improvement of the standard of people.
   • Scope of the Study

The study was specifically designed to cover Mkpat Enin L.G.A. It focused mainly on the household livelihood strategies and the varied nature of issues involved in livelihood diversification analysis.