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PROJECT TOPIC: IMPACT OF FADAMA- II PROJECT ON INCOME INEQUALITY AND POVERTY REDUCTION OF RURAL HOUSEHOLDS IN NIGERIA

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ABSTRACT

Efforts to reduce rural inequality and poverty in Nigeria have no appreciable impact partly due to their supply-driven approach. In recent times emphasis is shifting to demand driven approach through Community Driven Development (CDD) projects with focus on bottom-up development. Fadama-II (2004 and 2009), one of the CDD projects invested mainly in agricultural assets to increase the income of the users. However, the impact of the project on Income Inequality (IE) and poverty has not been fully established. Therefore, the impact of Fadama-II on IE and poverty reduction of rural households in Nigeria was investigated.

Secondary data collected by the International Food Policy Research Institute from twelve World Bank supported Fadama-II states in 2006/2007 farming year were used. These states lie in three agroecological zones; three in Humid Forest (HF), three in Moist Savanna (MS) and six in Dry Savanna (DS). A sample of 3,750 households comprising: Fadama-II Beneficiaries (FB)-34%; Fadama-II non-beneficiaries within Fadama Local Government Areas (LGAs)-33%; and Fadama-II non-beneficiaries outside Fadama LGAs-33% was used for the study. Information used was on socioeconomic characteristics, major assets and major components of household income and expenditure. The data were analysed using propensity score matching, descriptive statistics, double difference estimator, Gini-coefficient, Foster-Greer-Thorbecke weighted poverty index, and Poverty Equivalent Growth Rate (PEGR) at p=0.05.


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