The Impact of Foreign Direct Investment on Poverty Reduction in Nigeria

Many developing countries are competing to attract foreign direct investment with a belief that it can be a tool for poverty reduction because it serves as supplements to domestic savings and it is often accompanied with technology and managerial skills which are indispensable in economic development. Foreign direct investment can contribute in significant ways to breaking of growth – poverty vicious circle and there lies Nigerian hope. The Nigeria government has opened several economic sectors to foreign investors and issued several investment incentives. Since the market oriented economic reforms took place in Nigeria emphasis has been given to attracting FDI. In this study, the relationship between FDI and poverty reduction is analyzed empirically. It is based on secondary data which was collected from the central Bank of Nigeria and the World Bank’s world development indicators. The period covered in the study is 1980-2012. The model was estimated using the Ordinary Least Square Estimation Approach. The results show that FDI has a positive but not significant impact on real per capita income and hence does have the potential of reducing poverty in the country. The insignificant impact on the Nigerian economy may be due to the under development of human capital, backward institutions, crowding out of domestic investment or other reasons which require further investigation, the fact that FDI does not have a significant impact on poverty reduction has an important implication for policy markers, especially trade and FDI policies must be checked in order to make FDI growth enhancing in Nigeria

Public Debt and Public Expenditure in Nigeria: A Causality Analysis

This study investigated the causal relationship between total public debt and public expenditure in Nigeria from 1980 to 2015.The focus of the study is to determine if government borrowing in Nigeria is based on the need to provide social services and infrastructure as provided in the budget or by mere reason of privileged access to financial institutions both domestically and internationally as posited by Adam Smith (1776) in his theory of public debt. Applying co integration, vector error correction model and Wald test econometric tools of analysis to public debt, government capital expenditure, government recurrent expenditure and interest rate variables within the study period, the study obtained the following results. The trace statistics indicates two (2) co integration equations at five percent (5%) level of significance, suggesting that there is a long run relationship among the variables tested and that the results can be relied upon in taking long run policy decisions in the economy. The findings of the VEC test indicate that government capital and recurrent expenditure has significant positive relationship with public debt in the Nigerian economy. The Wald test result shows that unidirectional causality runs from both capital and recurrent expenditure to public debt in Nigeria. An obvious implication of this result is that government borrowing in Nigeria is triggered by government deficit budgeting, a situation which is well known in Nigeria at both federal and state levels. It therefore becomes necessary that the government budgeting process need to be reexamined to ensure that allocative efficiency is achieved in our budgeting system and that borrowing to finance budget deficit must be done objectively and realistically. This study therefore recommends the introduction of planning-programming-budgeting systems (PPBS) and Zero based budgeting (ZBB) in preference to the current practice of incremental budgeting (IB) in our public finance at both federal and state levels as is the current global practice considering that these budgeting approach seeks to intensify competition for budget resources and consequently aids the realization of government fiscal policy goals in the economy. Keywords: public debt, government capital expenditure, government recurrent expenditure, causality, Allocative efficiency, Zero based budgeting, fiscal policy

Climate Change Impacts and Adaptation Strategies of Cassava Farmers in Ebonyi State, Nigeria

The study evaluated the climate change impacts and adaptation strategies of cassava farmers in Ebonyi State, Nigeria. Multi-stage sampling was used to select 419 cassava farmers administered with questionnaire. Data were collected using primary and secondary means and were analyzed using descriptive statistics, beta regression model, and ordinary least squares multiple regression technique. Results showed that cassava farmers were educated (12.0), experienced (18.0), and more of males (85.0%). Factors influencing cassava production were identified as meteorological information (95.7%), tradition and culture (94.5%), research innovation (93.1%) and financial institutions (71.8%). Climate change effects on cassava production were reduced biodiversity (95.2%), increased crop failure (97.6%), decreased yield (100%) and increased soil salinity (92.6%). Cassava farmers adapted to various practices such as planting improved cassava varieties (95.9%), insurance (3.3%), planting different crops (96.9%), and livelihood diversification (94.9%). Age, education, household size, farm size and extension contacts were significant determinants of climate change adaptation strategies of cassava farmers. Climate variable such as temperature, rainfall, humidity and sunshine had dual impacts on cassava production. The study recommends cassava farmers to seek for early warning signals and information on climate change before embarking on their farming operations to avert possible negative consequences

Climate Change Impacts and Adaptation Strategies of Cassava Farmers in Ebonyi State, Nigeria

The study evaluated the climate change impacts and adaptation strategies of cassava farmers in Ebonyi State, Nigeria. Multi-stage sampling was used to select 419 cassava farmers administered with questionnaire. Data were collected using primary and secondary means and were analyzed using descriptive statistics, beta regression model, and ordinary least squares multiple regression technique. Results showed that cassava farmers were educated (12.0), experienced (18.0), and more of males (85.0%). Factors influencing cassava production were identified as meteorological information (95.7%), tradition and culture (94.5%), research innovation (93.1%) and financial institutions (71.8%). Climate change effects on cassava production were reduced biodiversity (95.2%), increased crop failure (97.6%), decreased yield (100%) and increased soil salinity (92.6%). Cassava farmers adapted to various practices such as planting improved cassava varieties (95.9%), insurance (3.3%), planting different crops (96.9%), and livelihood diversification (94.9%). Age, education, household size, farm size and extension contacts were significant determinants of climate change adaptation strategies of cassava farmers. Climate variable such as temperature, rainfall, humidity and sunshine had dual impacts on cassava production. The study recommends cassava farmers to seek for early warning signals and information on climate change before embarking on their farming operations to avert possible negative consequences

Farm and Non-Farm Income Diversification Activities among Rural Households in Southeast, Nigeria

The study assessed farm and non-farm income diversification activities among rural households in Southeast, Nigeria. Purposive and multi-stage random sampling techniques were used to collection data from three hundred and sixty (360) rural households using structured interview schedule. Means, percentage and frequency count were used to analyse the objectives of the study. The result showed that 82.5 % of rural households diversified their income sources into other non-farm activities as against 17.5% that depended solely to farm activities. Further analysis indicated that 64.4 % of the rural households engaged in crop production, 46.9 % practiced livestock production, 5% were into collection of forestry products, 13.1 % engaged in farm products processing while 23.3 % engaged in storage and marketing of agricultural products. However, the various non-farm activities diversified into by the households were: petty trading (53.53 %), storage and marketing of agricultural commodities (31.31 %), sale of landed property (15.82 %), agricultural wage labour (16.84 %) and hire purchase (9.09 %). Others included rental services (19.52 %), transportation (example taxis, motorcycle and tri-cycle business) (21.21 %), craftsmanship (13.46 %) and civil/public service jobs (28.28 %). The study recommended that government should improve rural infrastructures like good road network, electrification, potable water, telecommunication service, and affordable healthcare system since they are important for enhancing socio-economic activities. It is also recommended that government should initiate policy for reducing risk and uncertainties inherent in agricultural activities in order to encourage farmers to remain in the business of farming

Farm and Non-Farm Income Diversification Activities among Rural Households in Southeast, Nigeria

The study assessed farm and non-farm income diversification activities among rural households in Southeast, Nigeria. Purposive and multi-stage random sampling techniques were used to collection data from three hundred and sixty (360) rural households using structured interview schedule. Means, percentage and frequency count were used to analyse the objectives of the study. The result showed that 82.5 % of rural households diversified their income sources into other non-farm activities as against 17.5% that depended solely to farm activities. Further analysis indicated that 64.4 % of the rural households engaged in crop production, 46.9 % practiced livestock production, 5% were into collection of forestry products, 13.1 % engaged in farm products processing while 23.3 % engaged in storage and marketing of agricultural products. However, the various non-farm activities diversified into by the households were: petty trading (53.53 %), storage and marketing of agricultural commodities (31.31 %), sale of landed property (15.82 %), agricultural wage labour (16.84 %) and hire purchase (9.09 %). Others included rental services (19.52 %), transportation (example taxis, motorcycle and tri-cycle business) (21.21 %), craftsmanship (13.46 %) and civil/public service jobs (28.28 %). The study recommended that government should improve rural infrastructures like good road network, electrification, potable water, telecommunication service, and affordable healthcare system since they are important for enhancing socio-economic activities. It is also recommended that government should initiate policy for reducing risk and uncertainties inherent in agricultural activities in order to encourage farmers to remain in the business of farming

Migration and Agricultural Investment in Southeast, Nigeria

Gender shapes migration and agricultural investments in farming households. Despite indications that gender plays an important role in driving migration and remittance, research in this context is limited. This study therefore, explored rural-urban migration and agricultural investment in Southeast Nigeria. The study adopted a multi-stage sampling technique in the selection of respondents. Cross-sectional data gathered from 200 household heads (100 male-headed households and 100 female-headed households) was used. Using descriptive statistics and ordinary least square regression the findings reveal that majority of male and female migrants (60% and 55% respectively) in male-headed households migrated in search of jobs. Majority of male and female migrants in female-headed households (50% and 55% respectively) migrated in search of jobs. The major determinants of migration were gender of the migrant, gender of the household head, age, income, access to credit, number of migrants in the working age, occupation and number of livelihood activities pursued by the household. The average annual remittance from male migrants in male-headed households was N204,269.3 while that of their female counterparts was N161,297.76. The average annual remittance from male migrants in female-headed households was N189,282.9 while that of their female counterparts was N170,297.8. The average amount of remittance invested in agriculture in male-headed households was N131,334.8 while that of their female counterparts was N151,676.5. The study concludes that gender drives migration, remittances from both the sender and receiver perspectives and household investment decisions. It is however recommended that gender should be mainstreamed in migration policies to consider the peculiarities of both men and women in migration and remittances

Migration and Agricultural Investment in Southeast, Nigeria

Gender shapes migration and agricultural investments in farming households. Despite indications that gender plays an important role in driving migration and remittance, research in this context is limited. This study therefore, explored rural-urban migration and agricultural investment in Southeast Nigeria. The study adopted a multi-stage sampling technique in the selection of respondents. Cross-sectional data gathered from 200 household heads (100 male-headed households and 100 female-headed households) was used. Using descriptive statistics and ordinary least square regression the findings reveal that majority of male and female migrants (60% and 55% respectively) in male-headed households migrated in search of jobs. Majority of male and female migrants in female-headed households (50% and 55% respectively) migrated in search of jobs. The major determinants of migration were gender of the migrant, gender of the household head, age, income, access to credit, number of migrants in the working age, occupation and number of livelihood activities pursued by the household. The average annual remittance from male migrants in male-headed households was N204,269.3 while that of their female counterparts was N161,297.76. The average annual remittance from male migrants in female-headed households was N189,282.9 while that of their female counterparts was N170,297.8. The average amount of remittance invested in agriculture in male-headed households was N131,334.8 while that of their female counterparts was N151,676.5. The study concludes that gender drives migration, remittances from both the sender and receiver perspectives and household investment decisions. It is however recommended that gender should be mainstreamed in migration policies to consider the peculiarities of both men and women in migration and remittances

Migration and Agricultural Investment in Southeast, Nigeria

Gender shapes migration and agricultural investments in farming households. Despite indications that gender plays an important role in driving migration and remittance, research in this context is limited. This study therefore, explored rural-urban migration and agricultural investment in Southeast Nigeria. The study adopted a multi-stage sampling technique in the selection of respondents. Cross-sectional data gathered from 200 household heads (100 male-headed households and 100 female-headed households) was used. Using descriptive statistics and ordinary least square regression the findings reveal that majority of male and female migrants (60% and 55% respectively) in male-headed households migrated in search of jobs. Majority of male and female migrants in female-headed households (50% and 55% respectively) migrated in search of jobs. The major determinants of migration were gender of the migrant, gender of the household head, age, income, access to credit, number of migrants in the working age, occupation and number of livelihood activities pursued by the household. The average annual remittance from male migrants in male-headed households was N204,269.3 while that of their female counterparts was N161,297.76. The average annual remittance from male migrants in female-headed households was N189,282.9 while that of their female counterparts was N170,297.8. The average amount of remittance invested in agriculture in male-headed households was N131,334.8 while that of their female counterparts was N151,676.5. The study concludes that gender drives migration, remittances from both the sender and receiver perspectives and household investment decisions. It is however recommended that gender should be mainstreamed in migration policies to consider the peculiarities of both men and women in migration and remittances

Climate change adaptation actions by fish farmers: evidence from the Niger Delta Region of Nigeria

This paper examined climate change adaptation strategies in fish farming and the effect of such methods on the profit of fish farmers in the Niger Delta region of Nigeria, Africa’s most populous country. Using cross-sectional data obtained from 420 fish farmers from the region and applying multivariate probit and instrumental variable regressions, the study found that fish farmers have adopted a broad range of strategies to address climate risk and that these have significantly increased farmers’ profit. Our findings indicated important relationships between certain farm, socio-economic and institutional characteristics and the adaptation actions. The study provides useful insight into factors that potentially encourage the adoption of livelihood-enhancing climate risk adaptation strategies by fish farmers in the Niger Delta region and similar contexts