FDI and economic growth : evidence from Nigeria

Most countries strive to attract foreign direct investment (FDI) because of its acknowledged advantages as a tool of economic development. Africa - and Nigeria in particular- joined the rest of the world in seeking FDI as evidenced by the formation of the New Partnership for Africa's Development (NEPAD), which has the attraction of foreign investment to Africa as a major component. This study investigated the empirical relationship between non-extractive FDI and economic growth in Nigeria and examined the determinants of FDI into the Nigerian economy. Secondary data were sourced from the Central Bank of Nigeria, International Monetary Fund and the Federal Office of Statistics. The period of analysis was 1970- 2002. An augmented growth model was estimated via the ordinary least squares and the 2SLS method to ascertain the relationship between the FDI, its components and economic growth. Results suggest that the determinants of FDI in Nigeria are market size, infrastructure development and stable macroeconomic policy. Openness to trade and available human capital, however, are not FDI inducing. FDI in Nigeria contributes positively to economic growth. Although the overall effect of FDI on economic growth may not be significant, the components of FDI do have a positive impact. The FDI in the communication sector has the highest potential to grow the economy and is in multiples of that of the oil sector. The manufacturing sector FDI negatively affects the economy, reflecting the poor business environment in the country. The level of available human capital is low and there is need for more emphasis on training to enhance its potential to contribute to economic growth

Underutilised indigenous vegetables for household dietary diversity in Southwest Nigeria

The diets of many households in developing countries are monotonous and starch-based. Integrating underutilised indigenous vegetables (UIVs) to cropping systems can contribute to both crop and dietary diversities, thereby improving rural households’ nutrition and boosting food security. Therefore, this study established a link between the UIVs’ diversity and the household dietary diversity (HDD) of the UIVs producers in the rural area of Southwest Nigeria. A multistage sampling technique was used to select 191 UIV-producing households in the region. Their HDD was measured based on the 12 unique food groups consumed by households over a 7-day reference period preceding the survey, and negative binomial Poisson regression analysis was used to determine the relationship between UIV diversities, other sociodemographic characteristics, and the HDD score of the UIV producing households in the area. The results showed that only about four groups of food contributed greatly to the HDD score. The result of the negative binomial Poisson regression analysis showed UIVs diversity as a significant variable that increased the HDD score in the study area. Other factors that determined the HDD score of UIV-producing households were the marital status of the household head, farm distance from the home, UIVs land area, off-farm income, UIVs gross margin, per capita food expenditure, and Oyo location. The study concluded that the inclusion of diverse underutilised indigenous vegetables into cropping systems in rural areas and vegetable home gardening practices in the rural and urban areas of developing countries could alleviate the challenge of nutrition insecurity

Nigerian women reap benefits from indigenous vegetables

Despite their potential, research has failed to prioritize indigenous vegetable species for improving food security, nutrition and income. The project worked with 1,200 farmers (50% women) who have formed 22 vegetable cooperative groups. Radio programs on popular FM stations in south-western Nigeria created awareness on production, utilization, and nutritional and health benefits of underutilized vegetables, reaching over 3 million listeners. There has been rapid expansion of the project sites, with more farmers joining the training. Given the successes recorded in the field in south-western Nigeria, the introduction of this system is adaptable to other areas of Africa

Assessment of the impact of communication strategy (Radio Jingle) on the awareness of and the production of indigenous vegetables in Southwestern Nigeria

This work was carried out with the aid of a grant from Canada’s International Development Research Centre (IDRC), and with financial support from the Government of Canada, provided through Global Affairs Canada (GAC)The IDRC-GAC (Global Affairs Canada) project on “Synergizing fertilizer micro-dosing and indigenous vegetable production to enhance food and economic security of West African farmers” project utilized a branded radio program “Ramo Elefo” (or Ramo, the Vegetable Seller) to create awareness about products and innovations promoted by the project as well as to effectively mobilize the general populace in adopting the innovations made popular by the project. The project intensively used three major mass media: radio, TV, newspapers/magazines. The media strategy reached up to 8 million people in Benin Republic and more than 10 million in Nigeria

Synergizing fertilizer micro-dosing and indigenous vegetable production to enhance food and economic security of West African farmers : final report

This work was carried out with the aid of a grant from Canada’s International Development Research Centre (IDRC), and with financial support from the Government of Canada, provided through Global Affairs Canada (GAC)This annex answers questions that arose from baseline reports regarding: educational level of farmers; land acquisition; land area under vegetable cultivation; current use of fertilizers by farmers and use of irrigation; ease of water supply and access; costs associated with accessing water; household consumption of vegetables; and disputes in relation to the use of irrigation water, with emphasis on gender distribution. This is a detailed report on surveys, with data tables included. The Nigeria-Canada Indigenous Vegetables Project (NiCanVeg) successfully developed new technologies that improved farming practices, post-harvest handling and value addition for Indigenous vegetables

The influence of information and communication technology on farm income in Katsina state of Nigeria

Information is used increasingly in all aspects of human activity. The use of improved technologies is assisting in providing information in a timely manner. In spite of the fact that information has always been indispensable in political, economic and social development processes, the way that information is accessed and controlled is widely debated. The advent of the information and communication technologies (ICT) age has added another dimension to the debate. This study set out to examine the influence of Information and Communication Support for Agricultural Growth in Nigeria (ICS-Nigeria) project activities on the livelihood of farmers in the Katsina state of Nigeria. A multi-stage random sampling procedure was used to select 172 respondents made up of 85 participants and 87 non-participants in the programme. A qualitative method of analysis was used to analyse the data collected. Results suggest that participants become knowledgeable and thus adopt more improved farm practices. Consequently, they obtain more income than non-participant farmers, suggesting it will be useful to extend the frontiers of programme to other rural farmers with a view to improving their livelihood generally. Ghana Journal of Development Studies Vol. 3(1) 2006: 16-3

Value chain financing and plantain production in Nigeria: an ex-ante approach

Abstract Value chain finance (VCF) represents the aligning and structuring of finance within a value chain or as a result of its existence. Given the growing need to explore innovative approaches to rural and agricultural finance in Nigeria, such financing solutions have become imperative. However, few studies on the ex-ante impact of financing innovations exist. Therefore, to ascertain the benefits derivable from VCF, this paper analyzes the potential impact of VCF on plantain production in Nigeria. The expected benefits are estimated based on the economic surplus model, using the Dynamic Research Evaluation for Management (DREAM) software. Results from a 25-year simulation period at a 15% discount rate and an innovation cost of USD 1,300,000, show that, in the least optimistic scenario, the economy is expected to have an overall net gain (economic surplus) of USD 3256,800, with a net present value of USD 3406,880, benefit–cost ratio of 3.83, and an internal rate of return or break-even discount rate of 36.80%. These results indicate the positive impact of VCF, measured in terms of net present value and net benefit, expressed as producer and consumer surplus. This suggests VCF is a viable and beneficial financing innovation for food production in Nigeria. Finally, it is recommended that a value chain financing agency be established to make finance available to farmers to boost food production in Nigeria

Financing Gap Approach to Determination of Climate Change Vulnerability: An Example of Plantain Producers in Southwest Nigeria

One of the factors affecting availability of productive capital and exacerbating farmers’ vulnerability to climate change risks, is that they lack access to formal safety nets to which they could turn in times of need as most smallholder farmers lack capital and are unable to access credit. This study used a multi-stage sampling procedure to obtain a cross-sectional data from 300 plantain farmers in Southwest Nigeria and estimated their financing gap as a measure of their vulnerability to climate change hazards. Collected data were analysed using the Stochastic frontier function, the Harold-Dorma equation and the Foster Geer-Thorbecke (FGT) to determine the degree of farmers’ vulnerability. The Probit regression model was also used to examine factors affecting climate change adaptation methods in the study area. Results showed that with the vulnerability line at $409.6, more than two-third (84$225.28 to get a farmer out of financial vulnerability. Also, the Probit result showed that access to credit, climate insurance and climate information were the major determinants of the use of climate change adaptation methods in the study area. The financing gap approach enabled the determination and extent of each farmer’s vulnerability. Measures aimed at bridging the financing gap of individual farmer through increased access to credit and improved climate change information services should therefore be vigorously pursued, to reduce vulnerability in the study area

DETERMINANTS OF PARTICIPATION IN INNOVATION PLATFORMS AND ITS SUSTAINABILITY: A CASE STUDY OF SUB-SAHARAN AFRICA

Background. Innovation platforms (IP) are a set-up where a group of stakeholders that are somewhat interdependent are identified and invited to get together and interact in a forum for social learning. However, Sub-Saharan African researchers have recently paid very little attention to its participation. Objective. To investigate the determinants of participation in IPs and its sustainability. The study specifically outlines the socioeconomic characteristics of the farmers and identifies variables influencing farmers' participation in IPs and the sustainability of such IPs. Methodology. The study used a multistage sampling technique to collect its data. The data were analyzed using the Double hurdle count model. Results. The results of the first hurdle indicate that the decision to participate in IPs is significantly influenced by factors such as gender, age, household size, years of farming experience, number of female working-class members, young dependents, aged dependents, access to agricultural extension, and asset ownership. While the findings of the second hurdle model reveal that gender, age, marital status, years of schooling, the number of female members of the working class, the number of young dependents, the number of aged dependents, access to extension services, and asset ownership play a significant role in determining the sustainability of participation in IPs. Implications. The paper adds evidence for a better understanding of the determinants of participation in IPs and its sustainability. Conclusions. Based on these findings, it is recommended that institutional structures and programs that enhance farmers' education, the frequency of extension contacts, and farm income be implemented to sustain participation in IPs