Linkages between Crude-oil Exploration and Agricultural Development in Nigeria: Implications for relevant qualitative data collection and analysis to improve rural economy.

Thesis Abstract

                           ABSTRACT 

Crude oil exploration has led to environmental problems in the producing communities. This has adversely affected livelihood activities in agriculture leading to low income. For survival and sustenance, people in this area tend to rely on multiple choices of non-farm rural activities to improve household’s income. In this study, livelihood diversification strategies of farming households in crude oil-polluted areas of Nigeria were examined. Based upon the available information of the population size, the sampling procedure employed was Multi-stage random sampling. This technique helped to identify 150 polluted communities with 600 farming households covered. A total of 590-sample sizes were retained for subsequent analysis. Information was collected on household size, farming enterprise, different livelihood diversification strategies, costs of inputs, volume of outputs sold, revenue and household expenditure. Data were subjected to descriptive statistical, budgetary, regression and Foster-GreerThorbecke (FGT) poverty procedure. The average age of household head was 48.0 ±8.2 years. The household size of 9.6 ±5.3 members and average farm size of 2.8 ±0.8 ha were obtained. Major farm income activities were fisheries (65.0 %) and crop production (35.0 %). The livelihood diversification index of 0.4 (CV 42) showed that majority of the household heads undertook one form of livelihood diversification strategy or another. Eighty-nine percent of the respondents diversified into non-farm activities. Livelihood diversification has significant effect on household income at p < 0.05. A 1.0 % increase in livelihood diversification will lead to 1.4% increase in income signifying an elastic relationship. The poverty status showed that 85.2% of the household heads that relied only on farm income were unable to meet household basic needs compared with 32.3% for those that diversified into non-farm activities. Farming activities related livelihood strategies have low net income compared with non-farm activities. Livelihood diversification strategy is related to improved household income and reduced poverty status. Thus, there is dire need for comprehensive qualitative data collection to support critical research on the linkages between agricultural development and the rural economy. Keywords Crude oil-pollution, Livelihood Diversification, Non-Farm Rural Activities, Poverty gap, Ondo State, Nigeria.