ECONOMIC ANALYSIS OF FINANCING AND SUSTAINABILITY OF IRRIGATED AGRICULTURE IN THE LOWER ANAMBRA AND LOWER BENUE IRRIGATION PROJECTS, NIGERIA
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ECONOMIC ANALYSIS OF FINANCING AND
SUSTAINABILITY OF IRRIGATED AGRICULTURE IN THE LOWER ANAMBRA AND LOWER BENUE
IRRIGATION PROJECTS, NIGERIA
ABSTRACT
Irrigated
agriculture provides a very important part of national food security strategies
as
well as
individuals’ and communities livelihoods at the local level. Yet the
performance
of many
irrigation and drainage systems in Nigeria is generally below potential due to
a
variety of
shortcomings. The monopolistic nature of the sector and its social sensitivity
has fostered
extensive government intervention that has not always been conducive to
financial
sustainability. Insufficient cost recovery and lack of direct linkages between
revenue and
expenditure, and between the client and the service agency are the root of the
problems
resulting to lower performance. Globally, there is a consensus for irrigation
sector
reform to increase water productivity, bothering on the institutional structure
for
irrigation
management and the incentives for agencies and farmers. These reforms
suppose that
irrigation water is to be priced and that farmers will have to pay for the cost
of water
supply and related services. While such arrangements are important, some
questions
arise: would it work in situations where the physical infrastructure is
dilapidated;
user ability to pay is severely constrained by macro-economic factors; market
concepts and
institutions are absent or in their infancy; and capability in both
management
and regulation is limited.
These
concerns informed the need for this study.
The broad
objective of this study was to analyze the financing and sustainability of
irrigated agriculture in the Lower Anambra (LAIP) and Lower Benue (LBIP)
Irrigation Projects. The specific objectives of this study were to (i) describe
the sources and volume of investment;(ii) determine levels of cost recovery
achieved, (iii) analyze the institutional and management patterns of irrigated
farming in the two schemes; (iv)describe gender participation in the schemes;
(v)Describe gender division of farm decision making and performance of
activities; (vi) measure resource productivity and enterprise profitability in
both schemes; (vii) determine farmers willingness to pay for
irrigated
agriculture ; and (viii) Identify the socio-economic factors that influence
their willingness to pay.Data for this study was collected mainly through focus
group discussion and administration of structured questionnaire to farmers
randomly selected from the two projects. In the LAIP, a total of 143 farmers
were randomly selected for the interview, while in the LBIP a total of 33
farmers were randomly selected and interviewed.
In both
schemes key management and technical staff were also interviewed.
Information
collected includes socio-economic characteristics of farmers like educational
status,
income, age, years of experience; institutional and management patterns of
irrigated
farming; farmers’ input costs and output price data, and amount they are
willing
to pay for
improved water service. Data collected was analyzed using frequencies,
percentages,
gross margin, financial self-sufficiency indicator, Cobb-Douglas Production
function,
and Tobit regression model.The LAIP scheme is not able to sustain itself for
operation
and maintenance as the financial self-sufficiency indicator is 0.60. In both
projects,
the major interests identified by the farmers include water quality, quantity
and
availability
and also timely maintenance and repair of irrigation infrastructure. Headship
of household
was indicated by 81.81% of the respondents in LAIP as a factor affecting
access to
land in the project. Another major factor is community membership which was
indicated by
79.29% respondents. Major farming decisions like leasing land, fertilizer and
pesticide
use, were taken by male heads of households. The Cobb -Douglass production
function
analysis showed that for the LAIP rice enterprise the variables that are
significant
are fertilizer, seed and land; with seed being negatively related to output.
The
overall
F-Value of the regression was significant at 5% leading to a rejection of the
null
hypothesis
that resources used in the production do not significantly influence the
output.
Seed, Land
and fertilizer were significant in the analysis of potato production in LBIP
TABLE OF CONTENT:
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the
Research Problem
1.3 Objectives of the
Study
1.4 Significance of
the Study
1.5 Research Questions
1.6 Research
Hypothesis
1.7 Conceptual and
Operational Definition
1.8 Assumptions
1.9 Limitations of the
Study
CHAPTER TWO
LITERATURE REVIEW
2.1 Sources of
Literature
2.2 The Review
2.3 Summary of
Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Method
3.2 Research Design
3.3 Research Sample
3.4 Measuring
Instrument
3.5 Data Collection
3.6 Data Analysis
3.7 Expected Result
CHAPTER FOUR
DATA ANALYSIS AND RESULTS
4.1 Data Analysis
4.2 Results
4.3 Discussion
CHAPTER FIVE
SUMMARY AND RECOMMENDATIONS
5.1 Summary
5.2 Recommendations
for Further Study
References
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