Processors’ Acquisition of Productive Assets under National Fadama Development Project III in Southwest, Nigeria

Abstract

An inquiry into the determinants of sustained acquisition of productive asset by processors under NFDP III in South West Nigeria was conducted. Deploying a multi-stage sampling procedure a total of 126, 120 and 90 cassava, palm oil and palm kernel processors were sampled respectively. An interview schedule was used to elicit information from sample subjects and analysed using both descriptive statistics (frequency, percentage and mean) and inferential statistics (multiple regression analysis). Respondents' adherence to the sustainability component of the project was low for both cassava (71.4%) and palm kernel (72.2%) processors but was high (64.2%) for oil palm processors. Sustained acquisition of productive assets was low 75.0%, 60.0% and 86.7% of cassava, oil palm and palm kernel processors, respectively. The determinant of sustained acquisition of productive assets across the enterprises was adherence to the sustainability component of the project, with (β = 0.284), (β =3.397) and (β = - 1.473) for cassava, oil palm and palm kernel processors respectively. The study recommends the use of groups in the execution of interventions however their cohesiveness is key. It is also recommended that project benefits are given in tranches or phased out, with associated verifiable performance indicators as criterion for assessing the benefits.