3.1 Nigeria

Relevant sources of household-level micro records for Nigeria include:

• 2010 and 2012 Nigeria General Household Survey Panels
• 2003 and 2009/10 Harmonized Nigeria Living Standard Surveys
• DfID’s sponsored agricultural survey (1,300 hhlds) (contact Abt Associates)
• Fadama III 2009 Baseline and 2012 Midline Surveys and Fadama’s Agricultural Production Surveys (APS) (still not publicly available, see e.g. Girei, Saingbe, Bitrus, & Bassey (2017))
• 2010/11 National Agricultural Sample Survey (NASS) (only a PDF is available)
• 2006 Nigeria Private Farmer Crop Sample Survey
• 2006 Nigeria Private Farmer Livestock Poultry Sample Survey

Note that all intermediary value variables (income and expenses) have been generated by IFPRI using FAO RIGA guidelines.

Using these variables we define a farm holding as a household matching any of the following conditions:

• has any \(farmarea\) or \(croparea\)
• has any \(cropvalue\) or \(lstocksold\) or \(fishsold\)
• owns any livestock \(TLU\_total\)
• collects any other revenue from farming \(aggross\)

Within the sub-sample of farm households we look at the distribution of households across 3 key (“threshold”) variables:

• Cultivated/operated area \(croparea\) (using breaks at 2 ha and/or 4 ha and excluding farm households with no \(croparea\))
• Crop commercialization \(cropsales\_sh\) (using breaks at 5% and 50% of crop production)
• Share of off-farm income in total hhld income \(naggross\_sh\) (using breaks at 1/3 and 2/3 of total gross income)

The resulting classes of farm households are labeled as follows:

Tab. 3.1: Household Classification

	Crop Commercialization
Income Diversification	low	medium	high
low	LoCLoD	MeCLoD	HiCLoD
medium	LoCMeD	MeCMeD	HiCMeD
high	LoCHiD	MeCHiD	HiCHiD

3.1.1 An Aside on Income Diversification

Initial results from the 2 Nigeria GHS panels tend to show very low income diversification among rural farm households. We propose to check these results against income and expenditure aggregates derived by FAO RIGA. RIGA documentation for Nigeria indicates the following aggregate income shares (FAO, 2016) (among rural households only):

Tab. 3.2: RIGA Income Aggregates, NGHS 2012/2013 (Rural Households)

Variable	Participants	Participation Rate	Returns to Participation - Participant HHs	Returns to Participation - All HHs	Share of Total Income - All HHs (Mean of Shares)	Share ofTotal Income - All HHs (Share of Means)
agr_wge	40	0.01	311,337	3,515	0.01	0.01
nonagr_wge	446	0.14	731,050	104,061	0.12	0.24
crop1	2,490	0.75	292,214	217,792	0.71	0.51
livestock	2,538	0.76	34,194	25,848	0.05	0.06
selfemp	1,851	0.59	121,179	71,630	0.09	0.17
transfer	138	0.05	9,069	408	0.00	0.00
other	462	0.15	42,125	6,240	0.02	0.01
totincome1	3,099	0.95	450,431	429,495	1.00	1.00

All income aggregates are net of expenses. For this study however gross crop and livestock sales and gross farm and non-farm incomes would be preferable. These are derived in the codes below [in progress].

3.1.2 Key Results

The following 3 tables show the count of observations in each class for farm households with cultivated area <= 2ha, between 2 and 4ha, and <= 4ha.

Tab. 3.3: Count of Observations across Classes of Farm Households

	\(\leq\) 2 ha			2-4 ha			\(>\) 4 ha
	LoC	MeC	HiC	LoC	MeC	HiC	LoC	MeC	HiC	All
LoD	1,740	92	92	182	8	14	75	4	3	2528
MeD	26	25	51	0	1	2	0	1	2	172
HiD	126	72	85	5	1	4	0	0	6	608
All	1,892	189	228	187	10	20	75	5	11	4880

Tab. 3.4: Count of Observations across Classes of Farm Households (below/above 2 ha)

	\(\leq\) 2 ha			\(>\) 2 ha
	LoC	MeC	HiC	LoC	MeC	HiC	All
LoD	1,740	92	92	257	12	17	2528
MeD	26	25	51	0	2	4	172
HiD	126	72	85	5	1	10	608
All	1,892	189	228	262	15	31	4880

Tab. 3.5: Count of Observations across Classes of Farm Households (below/above 4 ha)

	\(\leq\) 4 ha			\(>\) 4 ha
	LoC	MeC	HiC	LoC	MeC	HiC	All
LoD	2,011	117	121	75	4	3	2528
MeD	39	33	67	0	1	2	172
HiD	169	82	102	0	0	6	608
All	2,219	232	290	75	5	11	4880

In the next tables we limit categories to farm households below/above 4ha (as this approach produces classes with a larger count of observations). Using data from the 2012 Nigeria General Household Survey (GHS) we estimate the proportions of farm households across all categories and the distributions of other key household characteristics (household structure, assets, farm input uses, etc.).

Estimated proportions of farm households across classes and categories are shown in the next graph and table.

Fig. 3.1: Est. Proportions of Farm Holdings across Categories

Tab. 3.6: Est. Proportions of Farm Holdings across Categories (percent)

		\(\leq\) 4 ha			\(>\) 4 ha
		LoC	MeC	HiC	LoC	MeC	HiC
LoD	mean	70.7	4.0	4.6	2.0	0.3	0.1
	confint	67.4 - 73.9	3.1 - 5.0	3.4 - 5.8	1.3 - 2.7	0.0 - 0.6	0.0 - 0.2
MeD	mean	1.1	1.2	2.6	0.0	0.0	0.2
	confint	0.7 - 1.6	0.7 - 1.6	1.8 - 3.3	0.0 - 0.0	0.0 - 0.1	0.0 - 0.5
HiD	mean	5.9	3.0	4.1	0.0	0.0	0.2
	confint	4.6 - 7.2	2.2 - 3.8	3.0 - 5.3	0.0 - 0.0	0.0 - 0.0	0.0 - 0.4

Using the <= 4 ha smallholding definition above, we estimate as of 2012:

• there are 33M households in Nigeria
• 58.8% (19.2M) generate a revenue from farming (wages, rents, crops, livestock, and/or fish)
• 97% (16M) of farm holdings are small
• corresponding to a beneficiary population of 107M
• crop commercialization is low at 12.2% for smallholdings (below 4 ha) and 17.7% for larger holdings (over 4 ha) on average. Median rates are much smaller however with 0.07% for smallholdings and 0.30% for larger holdings.
• income diversification in farm households is 17% on average (18% for smallholdings and 13% for larger holdings) (i.e. off-farm income is 17% on average), but medians off-farm incomes are negligible at 0.83% (0.63% for smallholdings and 0.33% for larger holdings).

Notes: for LCU conversions 1 int$ = 108.23 Naira (2015)

Fig. 3.2: Prob. Density of Cultivated Area, Crop Commercialization, and Income Diversification

Fig. 3.3: Crop Commercialization and Income Diversification along Cultivated Area

Tab. 3.7: Crop Commercialization for Farms below/above 4 ha (percent, ’000 LCU)

		\(\leq\) 4 ha		\(>\) 4 ha
Variable		est.	std. err.	est.	std. err.
(cropsales_sh * 100)	Mean	12.20	0.99	17.68	4.56
	Q25	0.00	0.00	0.06	0.02
	Q50	0.08	0.02	0.30	0.50
	Q75	1.15	0.38	7.90	23.01
(cropsales/1000)	Mean	63.74	5.44	195.50	49.81
	Q25	0.00	0.00	21.08	10.55
	Q50	8.00	1.71	62.03	21.80
	Q75	54.35	6.49	193.38	113.64

Tab. 3.8: Non-Farm Income for Farms below/above 4 ha (percent, ’000 LCU)

		\(\leq\) 4 ha		\(>\) 4 ha
Variable		est.	std. err.	est.	std. err.
(noaggross_sh * 100)	Mean	17.59	1.19	12.54	3.29
	Q25	0.00	0.00	0.00	0.02
	Q50	0.63	0.09	0.33	0.12
	Q75	8.07	3.44	2.14	9.73
(noaggross/1000)	Mean	293.92	16.17	309.64	61.23
	Q25	0.00	0.00	0.00	5.15
	Q50	113.48	9.70	132.73	53.38
	Q75	363.10	19.87	393.34	82.47

The 9 categories of small farm holdings are further characterized in the following graphs and summary tables.

Fig. 3.4: Crop Commercialization by Age and Gender

Fig. 3.5: Income Diversification by Age and Gender

Fig. 3.6: Crop Commercialization and Income Diversification along Market Access

Fig. 3.7: Crop Commercialization and Income Diversification vs. Distance to Nearest Road

Note that all tables below omit standard errors for clarity.

Tab. 3.9: Market Access for Small Farm Households across Categories (km, travel time in hrs)

		LoCLoD	LoCMeD	LoCHiD	MeCLoD	MeCMeD	MeCHiD	HiCLoD	HiCMeD	HiCHiD
Variable		est.	est.	est.	est.	est.	est.	est.	est.	est.
dist_market	Mean	66.72	81.09	64.74	86.28	75.66	61.76	75.61	76.95	66.44
	Q50	58.16	69.39	59.24	90.40	71.85	57.23	70.09	68.50	53.94
dist_road2	Mean	7.61	4.68	3.86	7.75	4.97	3.58	7.80	7.92	5.08
	Q50	4.98	3.01	1.37	5.45	2.88	1.41	6.09	5.83	1.07
mkt50k	Mean	3.27	2.37	2.42	3.92	2.90	2.86	4.08	3.54	2.97
	Q50	2.91	2.27	1.76	3.18	2.51	1.86	3.23	2.80	2.29
mkt100k	Mean	3.47	2.48	2.58	4.26	3.17	3.00	5.05	3.84	3.41
	Q50	2.96	2.25	2.00	3.24	2.63	2.07	3.40	2.97	2.45

Tab. 3.10: Sources of Agricultural Income for Small Farm Households across Categories (’000 LCU, percent)

		LoCLoD	LoCMeD	LoCHiD	MeCLoD	MeCMeD	MeCHiD	HiCLoD	HiCMeD	HiCHiD
Variable		est.	est.	est.	est.	est.	est.	est.	est.	est.
(cropvalue/1000)	Mean	32,136	73	33	2,768	125	49	246	242	59
	Q50	26,043	36	24	128	113	34	146	172	36
(cropsales/1000)	Mean	49	0	0	263	40	12	216	220	49
	Q50	7	0	0	38	26	7	117	159	29
(lstocksold/1000)	Mean	225	81	8	335	132	13	595	106	15
	Q50	0	0	0	0	0	0	0	0	0
(agsales/1000)	Mean	357	81	9	605	174	25	934	326	64
	Q50	36	0	0	84	50	11	249	211	44
agsalespc	Mean	82,419	14,910	1,858	185,677	35,520	6,667	270,919	107,205	18,699
	Q50	8,008	0	0	19,051	10,462	2,586	58,272	65,284	9,448
(aggross/1000)	Mean	32,448	186	44	3,131	264	64	970	400	78
	Q50	26,207	75	32	239	135	44	295	307	47
(cropsales_sh * 100)	Mean	0	0	0	21	29	24	87	88	84
	Q50	0	0	0	18	31	22	91	94	93
(aggross_sh * 100)	Mean	99	46	10	97	50	14	93	48	15
	Q50	100	45	7	100	47	12	100	47	15

Tab. 3.11: Land and Livestock Assets of Small Farm Households across Categories (ha, TLU)

		LoCLoD	LoCMeD	LoCHiD	MeCLoD	MeCMeD	MeCHiD	HiCLoD	HiCMeD	HiCHiD
Variable		est.	est.	est.	est.	est.	est.	est.	est.	est.
farmarea	Mean	0.72	0.23	0.23	0.88	0.44	0.24	0.78	0.52	0.48
	Q50	0.46	0.10	0.07	0.55	0.21	0.10	0.43	0.35	0.35
croparea	Mean	0.71	0.23	0.23	0.88	0.43	0.24	0.78	0.52	0.48
	Q50	0.45	0.10	0.07	0.55	0.17	0.10	0.43	0.35	0.33
catt_numberimp	Mean	1.56	0.12	0.14	0.13	0.75	0.27	0.87	0.17	0.23
	Q50	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
pigs_numberimp	Mean	0.18	0.07	0.02	0.02	0.00	0.70	0.00	0.00	0.49
	Q50	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
chic_numberimp	Mean	7.76	5.86	5.49	5.52	4.23	4.11	4.22	5.40	4.87
	Q50	0.00	0.00	0.00	0.00	2.45	0.00	0.00	0.00	0.00
sheep_numberimp	Mean	1.78	0.28	0.72	0.40	0.75	0.54	1.11	0.37	1.14
	Q50	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
goat_numberimp	Mean	3.14	1.00	1.09	1.33	2.25	1.15	1.16	1.52	1.13
	Q50	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
TLU_total	Mean	1.72	0.36	0.33	0.33	0.79	0.54	0.72	0.34	0.49
	Q50	0.42	0.03	0.00	0.03	0.11	0.08	0.00	0.05	0.09

Tab. 3.12: Demographics of Small Farm Households across Categories

		LoCLoD	LoCMeD	LoCHiD	MeCLoD	MeCMeD	MeCHiD	HiCLoD	HiCMeD	HiCHiD
Variable		est.	est.	est.	est.	est.	est.	est.	est.	est.
hhsize	Mean	7	6	6	6	6	6	5	5	6
	Q50	7	6	6	6	6	6	5	5	6
(femhead * 100)	Mean	11	19	21	13	10	14	13	18	11
	Q50	0	0	0	0	0	0	0	0	0
agehead	Mean	52	58	54	58	62	56	54	54	54
	Q50	50	58	55	59	61	55	55	53	51
(lithead * 100)	Mean	55	62	69	50	59	74	53	64	70
	Q50	100	100	100	0	100	100	100	100	100
eduyears	Mean	7	8	8	7	8	9	6	8	8
	Q50	6	6	6	6	6	6	6	6	6
numchildren	Mean	3	2	2	2	2	2	2	2	2
	Q50	3	1	2	2	1	2	1	1	2
equiv	Mean	5	5	5	4	4	5	4	4	4
	Q50	5	4	4	4	4	4	3	4	4
females	Mean	3	3	3	3	3	3	3	3	3
	Q50	3	3	3	3	3	3	2	3	3
males	Mean	3	3	3	3	3	3	3	3	3
	Q50	3	2	3	3	3	3	2	2	3
sh_ed_none	Mean	6	4	4	8	3	3	6	4	7
	Q50	0	0	0	0	0	0	0	0	0
sh_ed_prim	Mean	62	58	46	59	43	44	64	62	55
	Q50	67	56	50	57	50	50	67	60	56
sh_ed_secu	Mean	32	39	49	32	54	53	31	34	37
	Q50	25	40	50	25	50	50	25	33	35

Tab. 3.13: Parcels and Input Uses for Small Farm Households across Categories (percent)

		LoCLoD	LoCMeD	LoCHiD	MeCLoD	MeCMeD	MeCHiD	HiCLoD	HiCMeD	HiCHiD
Variable		est.	est.	est.	est.	est.	est.	est.	est.	est.
parcels	Mean	1.9	2.1	1.7	2.3	2.3	2.0	2.0	2.0	1.9
	Q50	2.0	2.0	1.0	2.0	2.0	2.0	2.0	2.0	2.0
(chempest_farms * 100)	Mean	20.8	10.5	2.2	25.5	10.3	2.6	32.5	36.0	22.7
	Q50	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
(chemherb_farms * 100)	Mean	26.8	12.0	11.6	35.3	20.5	8.9	32.9	29.8	21.2
	Q50	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
(fertorg_farms * 100)	Mean	4.6	3.3	3.7	0.0	0.0	4.2	2.0	3.0	12.6
	Q50	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
(fertinorg_farms * 100)	Mean	48.2	30.0	24.7	16.8	35.5	21.1	21.5	25.0	33.8
	Q50	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
(seedp_farms * 100)	Mean	27.8	27.6	46.7	25.5	37.1	33.7	28.3	19.1	38.1
	Q50	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
(tractorown_farms * 100)	Mean	1.2	2.6	2.2	1.0	1.6	0.0	6.7	2.8	0.6
	Q50	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
intens_idx2	Mean	1.4	0.8	0.9	0.8	1.0	0.7	1.1	1.1	1.3
	Q50	1.0	0.5	1.0	0.7	0.8	0.8	1.0	1.0	1.0

Tab. 3.14: Poverty Incidence in Small Farm Households across Categories (PPP, percent)

		LoCLoD	LoCMeD	LoCHiD	MeCLoD	MeCMeD	MeCHiD	HiCLoD	HiCMeD	HiCHiD
Variable		est.	est.	est.	est.	est.	est.	est.	est.	est.
pcexp_ppp_m	Mean	29.7	26.6	39.7	32.7	39.7	33.5	38.2	54.6	46.2
	Q50	21.6	22.2	24.4	26.4	36.7	26.2	27.3	44.9	30.9
foodexp_ppp_m	Mean	23.0	18.8	24.1	24.0	27.3	24.7	29.8	39.5	32.4
	Q50	17.0	14.9	16.2	18.5	26.3	19.5	21.9	32.0	24.3
nfoodexp_ppp_m	Mean	6.6	7.7	15.6	8.6	12.4	8.8	8.4	15.1	13.8
	Q50	4.1	5.0	6.9	5.2	6.9	7.0	6.3	9.1	7.5
(poor_ppp1 * 100)	Mean	74.3	80.8	71.3	68.4	51.8	64.2	66.3	36.9	59.0
	Q50	100.0	100.0	100.0	100.0	37.4	100.0	100.0	0.0	100.0
(poor_ppp2 * 100)	Mean	90.6	93.0	82.5	86.1	89.9	91.0	83.9	68.9	83.2
	Q50	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
(povgap_ppp1 * 100)	Mean	38.3	39.5	34.3	33.7	17.5	30.6	27.9	14.6	24.7
	Q50	43.1	36.1	35.8	29.6	0.0	30.5	27.7	0.0	17.1
(povgap_ppp2 * 100)	Mean	55.3	57.8	50.5	50.4	38.5	50.0	45.4	29.7	42.3
	Q50	64.5	60.0	59.9	56.0	35.3	56.5	54.8	24.5	48.2
(sevpov_ppp1 * 100)	Mean	23.6	23.2	19.6	20.6	7.7	17.9	14.6	7.6	13.0
	Q50	18.6	13.1	12.8	8.7	0.0	9.3	7.7	0.0	2.9
(sevpov_ppp2 * 100)	Mean	38.6	39.8	34.4	34.5	20.5	32.4	28.9	16.6	26.1
	Q50	41.6	36.1	35.8	31.3	12.5	32.0	30.1	6.0	23.2

References

Girei, A. A., Saingbe, N. D., Bitrus, M. A., & Bassey, I. H. (2017). Revealing the Impact of Fadama III Project on the Income Level of Beneficiary Farmers in Plateau State, Nigeria. European Journal of Academic Essays, (4(2): 26-38). Retrieved from http://euroessays.org/wp-content/uploads/2017/02/EJAE-1611-547.pdf

FAO. (2016). Components of Income Aggregate: Nigeria General Household Survey 2012-2013. Rural Income Generating Activities (RIGA) Project. Food and Agriculture Organization (FAO). Retrieved from http://www.fao.org/economic/riga/riga-database/riga-survey/en/