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Item Economic Growth, Income Redistribution and Poverty Reduction in Rural Nigeria(2012) Adigun, G. T.The Nigerian economy over the past few years grew at one of the highest rates in Africa. Yet, this growth has not led to substantial reduction in inequality and poverty, particularly in the rural sector. This was partly attributed to redistributional problem of national wealth which has not been adequately investigated. Therefore, the study assessed the contribution of growth and wealth distribution to poverty reduction in rural Nigeria from 1996 to 2004. Data from the National Consumer Survey (NCS) of 1996 and National Living Standard Survey (NLSS) of 2004 sourced from the National Bureau of Statistics were used. The number of households sampled under the NCS and NLSS were 11,577 and 22,200 respectively. The rural household components of NCS and NLSS totaling 9377 and 14,515 respectively were used. Variables extracted for the study included demographic and socioeconomic characteristics as well as average household expenditure. The data were analysed using Gini, Foster-Greer-Thorbecke measures of poverty, the Shapley decomposition rule in co-operative game theory and Oaxaca-Blinder decomposition technique at p = 0.05. Rural household mean ages in 1996 and 2004 were 44.8 ±13.2 and 43.0 ±14.2 years respectively. Mean family size was 5.4 ± 3.7 in 1996 and 4.9 ± 2.9 in 2004. Gini coefficient and poverty incidence in 1996 were 48.0 and 69.2% compared to 46.0 and 65.1% in 2004 respectively. In 1996, the poverty gap and severity indices were 34.5 and 21.2% respectively while in 2004, the corresponding values were 27.6 and 14.9% respectively. Poverty severity was highest (61.8%) among Remittances Income Earners (RIE) and least (32.8%) among non – farm income earners in 2004. Highest variation (67.1%) in income was among RIE while the least (45.3%) was among agricultural income group. Both economic growth and income redistribution reduced poverty by 0.025 and 0.056% respectively. A 10% decrease in inequality resulted in 0.04 and 2.45% reduction in poverty in 1996 and 2004 respectively. Similarly, a 10% increase in growth in 1996 and 2004 reduced poverty in both periods by 0.02 and 0.23% respectively. Variations in income distribution within the two periods contributed 0.248 to total inequality compared with 0.362 between the two periods. Income distribution disparity within the two periods (0.245) contributed less to poverty than the variation between the two periods (2.934). A 10% increase in growth from 1996 to 2004 reduced poverty by 6.2% and decreased inequality by 3.4%. The respective key determinants of growth for both periods were age of household head (0.011, 0.199), housing (0.038, 0.032), education (0.129, 0.141) and hours worked (0.183×10-4, 0.002). Others were gender (- 0.117, -0.213) and household size (-0.044, -0.140). Economic growth and income redistribution generally ameliorated poverty between 1996 and 2004 in rural Nigeria and the growth facilitating factors comprised quality of housing, education, longer hours of work and being a middle aged household head. The effect of poverty was however more noticeable among remittances income earners.Item Effect of Social Capital on Rural Household Welfare in Southwestern Nigeria(2013) Adepoju, A. A.Rural household welfare remains low in Nigeria, as the traditional capital (physical, natural, human and financial) has not fully led to its improvement. There is increasing shift of attention to social capital as an element that explains household welfare. The nexus between social capital and rural household welfare in southwestern Nigeria has not been fully examined. The effect of social capital on rural household welfare in southwestern Nigeria was therefore investigated. Multistage sampling technique was used. Oyo and Ekiti states were selected from the six states in southwestern Nigeria based on their poverty profile (the least poor and the poorest). Six rural Local Government Areas and thirty-two communities were selected from the two states based on probability proportionate to size and sample size of 298 was used for the analysis. Data were collected on household demographic characteristics such as age, education and household size, expenditure profile and social capital dimensions: Membership Density (MD), Decision Making (DM), Meeting Attendance (MA), heterogeneity, Cash Contribution (CC) and Labour Contribution (LC). Data were analysed using descriptive statistics, ordered probit, ordinary least square, two-stage least square and control function regression models at p=0.05. Ninety three percent of the households were headed by male. Mean age, years of formal education and household size were 48.3 ± 11.7 years, 8.4 ± 6.3 years and 6.1 ± 2.6 respectively. Average MD and DM in association were 4.5 ± 2.1 and 24.7 ± 13.2. Households attended four out of every five meetings scheduled. Diversification of membership measured by heterogeneity index was 21.7 ± 16.4 while annual CC and LC to association were N7,412.95 ± N9,757.73 and 54.6 ± 18.4 mandays respectively. Membership in religious group accounted for the highest proportion (77.3 percent) while recreational club accounted for the lowest (4.67 percent). The highest Welfare Tercile (WT) had monthly mean per capita expenditure of N9,135.98 N4,014.35 which was four times the value for the lowest WT (N2,239.82 N958.33). The maximum CC to associations was recorded by the highest WT (N9,756.90 ± N12,358.25) while the lowest WT had the maximum LC of 24.7 ± 20.2 mandays. Majority of the households (78.0 percent) benefited from access to information on market outlets and share of risk/shocks while 55.5 percent had access to land. Low educational level reduced benefit derived from social group by 0.027, while being a farmer (0.404), LC (0.016) and DM increased benefit received from social group. Household welfare reduced with increase in age (-2.965), being married (-2.965), household size (-0.398), being a farmer (-1.676) and LC (-7.5x10-4). Conversely, age squared, education and DM index increased household welfare by 0.2 percent, 10.8 percent and 2.8 percent respectively. Aggregate social capital index increased household welfare by 9.5 percent, while controlling for non-linear interaction of social capital with unobservable variables further increased the effect of social capital by 13.1 percent. Decision making and aggregate social capital improved household welfare while labour contribution reduced it. A bi-causality relationship existed between social capital and household welfare.Item Income Diversification and Poverty Among Rural Farm Households in Southwest Nigeria(2011) Idowu, A. O.Rural development has been erroneously equated to agricultural development. The former works to diversify income through non-farm activities to complement proceeds of the latter. However, the actual role of non-farm income in poverty alleviation is not yet known among rural households. There is therefore the need to critically explore the roles of non-farm income diversification in rural poverty alleviation. The patterns and contributions of non-farm income diversification to poverty reduction among rural farm households in Southwest Nigeria were investigated. A multistage sampling technique was used to obtain data from rural farm households. Three states (Ekiti, Ogun and Osun) from the six south western states were randomly selected. Five agricultural zones were randomly selected from the three states based on probability proportionate to size. In each zone, four blocks and three cells per block were selected. Lastly, two farming communities per cell and four farming households per community were selected to make 480 farming households. Structured questionnaire was used to collect data on socio-economic characteristics, household assets, income generating activities, labour-use, income and expenditure. Descriptive statistics, Foster-Greer-Thorbecke poverty measures, Herfindal index, Tobit and Probit regression methods were employed for data analyses at p = 0.05. Mean age of household heads, household size and dependency ratio were 49.9 ± 0.6 years, 6.8 ± 0.1 and 0.7 ± 0.1, respectively. The mean year of schooling of household heads was 8.8 ± 0.2 and 83.7% of households were headed by male. The mean per capita income was N206.7 ± 160.3/day while the per capita cost of basic needs was N253.4 ± 28.6/day. The incidence, depth and severity of poverty were 76.4%, 32.9% and 17.3% respectively. Ninety four percent of the households derived their income from a diversified portfolio of livelihood activities, with non-farm activities accounting for 67.1% of the income. The non-farm activities included skilled (18.0%) and unskilled (22.9%) wage employment, self-employment (81.3%) and social and community service (8.8%). Self-employment was the largest non-farm income source contributing 42.1%. Involvement in non-farm labour activities was significantly higher among poor than non-poor farm households. The level of income diversification depicted by Herfindal index was 2.8 ± 0.04 and it was significantly higher among poor than non-poor farm households. The implicit wage rate of household labour use in farming activities (N1,773.4/manday) was significantly higher than in non-farm activities (N878.0/manday). Education (0.1) and electricity (0.5) significantly increased non-farm income diversification while distance to urban centre (-0.04), landholding (-0.6) and animal asset base (-0.2) significantly reduced non-farm income diversification. Participation in non-farm skilled (-0.1) and unskilled (-0.1) wage employments significantly reduced the probability of being poor. Other characters of respondents that significantly reduced the probability of being poor included education (-0.1), landholding (-0.4), investment asset base (-0.000005) and rural electricity (-0.1) while household size (0.1) increased the probability. Participation in skilled and unskilled wage employment significantly reduced poverty among rural farm households in Southwest Nigeria.