The non-farm sector as a catalyst for poverty reduction in the Niger-Delta region, Nigeria

Abstract

The Niger-Delta region is the home of oil exploration in Nigeria. Over the years, the exploration of oil in the region has created several environmental problems. The increasing level of environmental degradation in the region has brought about pollution of water bodies and land which are the most important livelihood assets of the people. Thus, crop production and fishing which are the main livelihood activities of the people can no longer sustain the domestic needs of most rural households in the region. The quality of life in these communities has worsened as large numbers of the subsistent farmers are now edged out of the production circuit. To supplement income from the farm sector since the rural households must survive, this study therefore, assesses the role of the non-farm sector in the sustenance of the rural households. The survey research design was adopted. One state (Delta state) in the Niger-Delta was randomly selected for the study. The study covers two Local Councils in the state (Isoko North and South). Nineteen rural wards were purposively used for the study out of the twenty-four wards in the two councils. One community each was randomly selected from each ward. Both primary and secondary sources of data were utilized. The systematic sampling with a random start and a sampling interval of five was used in selecting the final respondents. Respondents are basically household heads. The main instruments of data collection were questionnaires and Focus Group Discussion. The results indicate that the non-farm sector is playing significant roles in poverty reduction as households now diversify into the non-farm sector in response to poor yield from farming. The study reveals a total of 33 different non-farm activities being undertaken by respondents. The result also shows that rural households participating in the non-farm sector enjoy a higher quality of life than households engaged in only farm activities. The findings have far reaching implications for policy. It recommends the review of Land Use Act to cater for people who have lost their main means of livelihood due to loss of their lands to oil exploitation and exploration. It also recommends that government should develop micro-credit schemes to assist the poor households who lack collateral to access credit to diversify their sources of income.  Keywords: Non-farm Sector, Catalyst, Poverty Reduction, Niger-Delta, Nigeria.