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The Determinants of Rural Households’ Income in Nigeria

Year 2021, Volume: 5 Issue: 3, 978 - 989, 18.09.2021
https://doi.org/10.25295/fsecon.974485

Abstract

Most rural areas in developing nations were faced with the problem of high poverty rate. A better understanding of drivers of rural household income is a powerful guide for proper intervention towards poverty alleviation and better wellbeing. This study, therefore, investigates the drivers of rural households’ income in Nigeria. Data sourced from National Bureau of Statistics were analysed using descriptive statistics and multiple regression. The results revealed that majority of rural households’ heads were males who were married with an average household size of 6 persons and high dependency ratio (0.94). The majority had a low level of education, depends on agricultural activities and earned a monthly income of N42,142.70. Gender of household’s head, household size and years of education were the significant factors enhancing rural households’ income while dependency ratio was the factor inhibiting rural households’ income. Thus, rural education and women empowerment is needed to boost rural income.

References

  • Akanbi, O. S., Oloruntola, D. S., Olatunji, S. O., Mukaila, R. (2020), “Economic Analysis of Poultry Egg Production in Kwara State, Nigeria”, Journal of Economics and Allied Research, 4(3), 57–71.
  • Anang, B. T., & Yeboah, R. N. (2019), “Determinants of Off-Farm Income among Smallholder Rice Farmers in Northern Ghana : Application of a Double-Hurdle Model”, Advances in Agriculture, 2019. https://doi.org/10.1155/2019/7246176
  • Beegle, K., Christiansen, L. (2019), “Accelerating poverty reduction in Africa”, Washington, DC: World Bank. © World Bank. https://openknowlegde.worldbank.org/handle/10986/32354 License: CC BY 3.0 IGO.
  • De La O Campos, A. P., Villani, C., Davis, B., Takagi, M. (2018), “Ending extreme poverty in rural areas – Sustaining livelihoods to leave no one behind”, Rome, FAO. 84 pp. Licence: CC BY-NC-SA 3.0 IGO.
  • Egwue, O. L., Agbugba, I. K., & Mukaila, R. (2020), “Assessment of rural households food insecurity during COVID-19 pandemic in South-east Nigeria”, International Journal of Research-Granthaalayah, 8(12), 182–194. https://doi.org/https://doi.org/10.29121/granthaalayah.v8.i12.2020.2713
  • Fadipe, A. E. A., Adenuga, A. H., & Lawal, A. (2014), “Analysis of income determinants among rural households in Kwara State, Nigeria”, Trakia Journal of Science, 12(4): 400–404. https://doi.org/10.15547/tjs.2014.04.010
  • Kryszak, L., Matuszczak, A. (2019), “Determinants of farm income in the European Union in new and old Member States. A Regional Study”, Annals of the Polish Association of Agricultural and Agribussiness Economists, 11(3): 200–211. https://doi.org/10.5604/01.3001.0013.3042
  • Kwaghe, P. V, Ibrahim, A., Mojirode, E. A. (2009), “Socio-economic determinants of income among cowpea farmers in Bama Local Government Area of Borno State, Nigeria”, Global J, Agric. Sci., 8(2): 163–167.
  • Mafimisebi, T. E. (2008), “Determinants and uses of farm income from the cassava enterprise in Ondo State, Nigeria”, Journal of Human Ecology, 24(2): 125–130.
  • Mukaila, R., Falola, A., Omotesho, O. A. (2020), “Food security status: its drivers and coping strategies among vegetable farming households”, Cercetări Agronomice În Moldova, 53(4), 414–425. https://doi.org/10.46909/cerce-2020-035
  • National Bureau of Statistics, (2020), “2019 Poverty and Inequality in Nigeria: Executive Summary”. https://nigerianstat.gov.ng/download/1092 (10.02.2021).
  • Nzabakenga, A., Feng, L. X., Yaqin, H. (2013), “Agricultural income determinants among Smallholder Farmers : Case of Northern Part of Burundi”, Asian Journal of Agriculture and Development., 3(11): 780–787.
  • Obetta, A. E., Mukaila, R., Onah, O. G., & Onyia, C. C. (2020), “Challenges of Melon Processing Among Women Processors in Enugu-Ezike Agricultural Zone of Enugu State, Nigeria”, Turkish Journal of Agriculture-Food Science and Technology, 8(11), 2421–2425. https://doi.org/https://doi.org/10.24925/turjaf.v8i11.2421-2425.3707.
  • Purnamadewi, Y. L., Firdaus, M. (2018), “Analysis of income determinants among households in the upland shallot production centre in Malang district, Indonesia”, 2nd International Conference on Food and Agricultural Economics, (April), 68–78. Turkey: Alanya Alaaddin Keykubat University, Turkey.
  • Ryś-jurek, R. (2019), “Determinants of Family Farm Income Depending on Farm Size”, Annals of the Polish Association of Agricultural and Agribusiness Economists, 11(3), 401–411. https://doi.org/10.5604/01.3001.0013.4097.
  • Safa, M. S. (2005), “Socio-Economic Factors Affecting the Income of Small-scale Agroforestry Farms in Hill Country Areas in Yemen : A Comparison of OLS and WLS Determinants”, Small-Scale Forest Economics, Management and Policy, 4(1), 117–134.
  • Swindall, D. C. ., Willis, D. B. ., Boys, K. A., & Hughes, D. W. (2011), “The Determinants of Self-Employed Income in a Regional Economy”, Selected Paper Prepared for Presentation at the Agricultural & Applied Economics Association’s 2011 AAEA & NAEWA Joint Annual Meeting, Pittsburg, Pennsylvania, July 24-26, 1–22.
  • Urgessa, T. (2015), “The determinants of agricultural productivity and rural household income in Ethiopia”, Ethiopian Journal of Economics., 14(2): 63–92.
  • Usman, Z.A., Ritter K., Vinogradov S.A. (2016), “The Dynamics of Income Inequality in Rural Areas of Nigeria”, Asian Journal of Agricultural Extension, Economics. & Sociology, 11(4): 1-13.
  • Viera, W., Viera, A., Martínez, A., Jácome, R., Ayala, G., Sotomayora, A., Galarzaa, D., Ron, L. (2017), “Factors influencing peach farmer income in the province of Tungurahua, Ecuador”, Economía Agraria y Recursos Naturales, 17(2), 133–141.
  • World Bank (2018), “Year in Review: 2018 in 14 Charts”. https://www.worldbank.org/en/news/feature/2018/12/21/year-in-review-2018-in-14-charts (10.09.2020).
  • World Bank (2019), “Nigeria At-A-Glance”. https://www.worldbank.org/en/country/nigeria (10.09.2020).
  • Xiong, Z., Niu, Y. (2010), “Factors affecting the income of farmers”, Asian Agricultural Research, 2(5): 18–20, 26.
Year 2021, Volume: 5 Issue: 3, 978 - 989, 18.09.2021
https://doi.org/10.25295/fsecon.974485

Abstract

References

  • Akanbi, O. S., Oloruntola, D. S., Olatunji, S. O., Mukaila, R. (2020), “Economic Analysis of Poultry Egg Production in Kwara State, Nigeria”, Journal of Economics and Allied Research, 4(3), 57–71.
  • Anang, B. T., & Yeboah, R. N. (2019), “Determinants of Off-Farm Income among Smallholder Rice Farmers in Northern Ghana : Application of a Double-Hurdle Model”, Advances in Agriculture, 2019. https://doi.org/10.1155/2019/7246176
  • Beegle, K., Christiansen, L. (2019), “Accelerating poverty reduction in Africa”, Washington, DC: World Bank. © World Bank. https://openknowlegde.worldbank.org/handle/10986/32354 License: CC BY 3.0 IGO.
  • De La O Campos, A. P., Villani, C., Davis, B., Takagi, M. (2018), “Ending extreme poverty in rural areas – Sustaining livelihoods to leave no one behind”, Rome, FAO. 84 pp. Licence: CC BY-NC-SA 3.0 IGO.
  • Egwue, O. L., Agbugba, I. K., & Mukaila, R. (2020), “Assessment of rural households food insecurity during COVID-19 pandemic in South-east Nigeria”, International Journal of Research-Granthaalayah, 8(12), 182–194. https://doi.org/https://doi.org/10.29121/granthaalayah.v8.i12.2020.2713
  • Fadipe, A. E. A., Adenuga, A. H., & Lawal, A. (2014), “Analysis of income determinants among rural households in Kwara State, Nigeria”, Trakia Journal of Science, 12(4): 400–404. https://doi.org/10.15547/tjs.2014.04.010
  • Kryszak, L., Matuszczak, A. (2019), “Determinants of farm income in the European Union in new and old Member States. A Regional Study”, Annals of the Polish Association of Agricultural and Agribussiness Economists, 11(3): 200–211. https://doi.org/10.5604/01.3001.0013.3042
  • Kwaghe, P. V, Ibrahim, A., Mojirode, E. A. (2009), “Socio-economic determinants of income among cowpea farmers in Bama Local Government Area of Borno State, Nigeria”, Global J, Agric. Sci., 8(2): 163–167.
  • Mafimisebi, T. E. (2008), “Determinants and uses of farm income from the cassava enterprise in Ondo State, Nigeria”, Journal of Human Ecology, 24(2): 125–130.
  • Mukaila, R., Falola, A., Omotesho, O. A. (2020), “Food security status: its drivers and coping strategies among vegetable farming households”, Cercetări Agronomice În Moldova, 53(4), 414–425. https://doi.org/10.46909/cerce-2020-035
  • National Bureau of Statistics, (2020), “2019 Poverty and Inequality in Nigeria: Executive Summary”. https://nigerianstat.gov.ng/download/1092 (10.02.2021).
  • Nzabakenga, A., Feng, L. X., Yaqin, H. (2013), “Agricultural income determinants among Smallholder Farmers : Case of Northern Part of Burundi”, Asian Journal of Agriculture and Development., 3(11): 780–787.
  • Obetta, A. E., Mukaila, R., Onah, O. G., & Onyia, C. C. (2020), “Challenges of Melon Processing Among Women Processors in Enugu-Ezike Agricultural Zone of Enugu State, Nigeria”, Turkish Journal of Agriculture-Food Science and Technology, 8(11), 2421–2425. https://doi.org/https://doi.org/10.24925/turjaf.v8i11.2421-2425.3707.
  • Purnamadewi, Y. L., Firdaus, M. (2018), “Analysis of income determinants among households in the upland shallot production centre in Malang district, Indonesia”, 2nd International Conference on Food and Agricultural Economics, (April), 68–78. Turkey: Alanya Alaaddin Keykubat University, Turkey.
  • Ryś-jurek, R. (2019), “Determinants of Family Farm Income Depending on Farm Size”, Annals of the Polish Association of Agricultural and Agribusiness Economists, 11(3), 401–411. https://doi.org/10.5604/01.3001.0013.4097.
  • Safa, M. S. (2005), “Socio-Economic Factors Affecting the Income of Small-scale Agroforestry Farms in Hill Country Areas in Yemen : A Comparison of OLS and WLS Determinants”, Small-Scale Forest Economics, Management and Policy, 4(1), 117–134.
  • Swindall, D. C. ., Willis, D. B. ., Boys, K. A., & Hughes, D. W. (2011), “The Determinants of Self-Employed Income in a Regional Economy”, Selected Paper Prepared for Presentation at the Agricultural & Applied Economics Association’s 2011 AAEA & NAEWA Joint Annual Meeting, Pittsburg, Pennsylvania, July 24-26, 1–22.
  • Urgessa, T. (2015), “The determinants of agricultural productivity and rural household income in Ethiopia”, Ethiopian Journal of Economics., 14(2): 63–92.
  • Usman, Z.A., Ritter K., Vinogradov S.A. (2016), “The Dynamics of Income Inequality in Rural Areas of Nigeria”, Asian Journal of Agricultural Extension, Economics. & Sociology, 11(4): 1-13.
  • Viera, W., Viera, A., Martínez, A., Jácome, R., Ayala, G., Sotomayora, A., Galarzaa, D., Ron, L. (2017), “Factors influencing peach farmer income in the province of Tungurahua, Ecuador”, Economía Agraria y Recursos Naturales, 17(2), 133–141.
  • World Bank (2018), “Year in Review: 2018 in 14 Charts”. https://www.worldbank.org/en/news/feature/2018/12/21/year-in-review-2018-in-14-charts (10.09.2020).
  • World Bank (2019), “Nigeria At-A-Glance”. https://www.worldbank.org/en/country/nigeria (10.09.2020).
  • Xiong, Z., Niu, Y. (2010), “Factors affecting the income of farmers”, Asian Agricultural Research, 2(5): 18–20, 26.
There are 23 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Ridwan Mukaila 0000-0001-8584-0858

Abraham Falola 0000-0002-5265-9355

Lynda Egwue 0000-0002-2390-9220

Publication Date September 18, 2021
Published in Issue Year 2021 Volume: 5 Issue: 3

Cite

APA Mukaila, R., Falola, A., & Egwue, L. (2021). The Determinants of Rural Households’ Income in Nigeria. Fiscaoeconomia, 5(3), 978-989. https://doi.org/10.25295/fsecon.974485

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