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Abstract. Since its intervention in the Nigeria agricultural sector in 1975, the World Bank says it has
committed well over USD1.2billion on agricultural development programmes in Nigeria. The goal of this
investment was to enhance the productive base of smallholder farmers and lift them out of poverty. This study,
therefore, appraised the effectiveness of these policies and how well it has performed in achieving increased
wellbeing of smallholder farmers in Edo State, Nigeria. To achieve this, data were collected from 248 farmer
participants in the World Bank assisted agriculture development programme randomly sampled from 52
Fadama User Groups (FUGs) in 18 communities, covering six LGAs from two senatorial districts in Edo
State, Nigeria. Primary data were obtained from the respondents by means of questionnaire and interview
schedule, which were analysed using frequency distribution, mean, t-test and chi-square. An assessment of
the poverty profile of the farmers reveals that the World Bank formulated agriculture development policies
were effective in enhancing farmers’ living standards. The study found that the proportion of
farmers/respondents who were very poor reduced from 59.3% to 17.3% after participating in the programme,
while the non-poor increased from 32.3% to 59.3% after joining in the programme. Based on some limitations
identified in the study such as insufficient government assistance and high levies thereby hindering access to
inputs, it was recommended among others that the government should increase its counterpart support to
agriculture development programmes as well as link farmers with sources of better agricultural inputs and
market.
Keywords: Agriculture Development, Development Financing, Improved Livelihood.
1597-1740 © 2020 Institute for Governance and Development (IGD). Production by Sciengtex Publishing.
40
Impact of World Bank Agricultural Development Policies on the Socio-Economic Wellbeing …
tripartite agreement involving World Bank 66%, during this period included: Farm Settlement
Federal government 20% and State government 14% Schemes and National Accelerated Food Production
in addition to payments of salaries of local staff. Programme (NAFPP), launched in 1972; Operation
Feed the Nation, launched in 1976; River Basin and
The two main objectives of the ADPs were to
Rural Development Authorities, established in 1976;
increase food production, and to raise the income of
Green Revolution Programme, inaugurated in 1980;
small-scale farmers. The ADPs started three (3) pilot
World Bank-funded Agricultural Development
projects in 1975 at Funtua in Funtua Local
Projects (ADP) which was a World Bank, Increased
Government Area of Katsina State, Guzau in Guzau
food production and rural Development Small-
Local Government Area of Zafara State and Gombe
holder Rural farmers, National Accelerated Food
in Gombe Local Government Area of Gombe State.
Production Programme (NAFPP 1972), Multi-State
The success of the pilot schemes led to expansion to
Agricultural Development Programme (MSADP
other LGAs and States in the late 70s and by 1984, all
1985), Directorate for Food and Rural Infrastructure
the States of the Federation were implementing the
(DFFRI 1988), National Fadama Development
integrated approach. In furtherance to the Bank’s
Programme (1992), Presidential Initiative on Cassava
objectives, International Fund for Agricultural
(2000), Agriculture transformation Agenda (2011).
Development (IFAD) also established a programme
to help in improving cassava farming among rural While each of the above programmes sought to
farmers. What we have today as the multi-state ADP improve food production, the ADPs represented the
is the product of the joint effort of the World Bank major practical demonstration of the integrated
and IFAD which culminated in the establishment of approach to agricultural development in Nigeria. In
ADPs in Nigeria. Since then, the agricultural sector spite of the growing importance of oil, Nigeria has
in Nigeria has relied heavily on World Bank remained essentially an agrarian economy, with
assistance for its growth and survival. Recently, agriculture still accounting for significant shares in
World Bank policy on Agriculture in Nigeria has Gross Domestic Product (GDP) and total exports as
been narrowed to focus on certain measurable well as employing the bulk of the labour force.
deliverables targeted at increasing the assets of Available data show that at independence in 1960 the
smallholder rural farmers in Nigeria in other to attain contribution of agriculture to the GDP was about
self-sufficiency in food production. The World Bank 60%, which is typical for developing agrarian
realised that production based only on rain fed nations. However, this share declined over time to
agriculture is difficult to achieve. only about 25% between 1975 and 1979, this was due
partly to the phenomenal growth of the mining and
Agriculture History in Post-Colonial Nigeria
manufacturing sectors during the period and partly as
The agricultural history of Nigeria is intertwined
a result of the disincentives created by the
with its political history. This can be assessed from
macroeconomic environment.
the pre-colonial, colonial and post-colonial periods.
Before the British conquest the pre-colonial society The sector remains the largest contributor to the
strived on agriculture as the main stay of the Nigerian economy, accounting for over 38% of the
traditional economy. The period of the colonial non-oil foreign exchange earnings and employing
administration in Nigeria, 1861 – 1960, was about 70% of the active labour force of the
punctuated by rather ad hoc attention to agricultural population. Although, the sector has suffered much
development. During the era, considerable emphasis neglect by the Federal Government since the
was placed on research and extension services in the discovery of petroleum in commercial quantity in
area of modern agriculture practices. But of 1958, but its importance cannot be over emphasized
importance to the writer is the post-colonial period. in the Nigerian economy. Since the early 1960s,
several agricultural research institutes and their
The 1962-1968 development plan was Nigeria’s
extension research liaison services have been
first national plan. Among several objectives, it
established. Some of the major institutions are:
emphasized the introduction of more modern
agricultural methods through farm settlements, co- (a) Agricultural Extension and Research Liaison
operative (nucleus) plantations, supply of improved Service (AERLS) at the Ahmadu Bello
farm implements (e.g. hydraulic hand presses for oil University, Zaria established in 1963 for the
palm processing) and a greatly expanded agricultural purpose of producing modern methods in
extension service. Some of the specialised agriculture extension services;
development schemes initiated or implemented
ISSN: 1597 – 1740 Volume 8, February 2020 41
International Journal of Governance and Development Volume 8, February 2020.
(b) The International Institute of Tropical contributed more than 60 percent of the GDP.” And,
Agriculture (IITA), at Ibadan, to produce with the poorly developed capital markets, farmers’
improved farming seedlings; credit during the period came mostly from informal
(c) International Livestock Centre for Africa sources at prohibitive interest rates. Agricultural
(ILCA), with head office at Addis Ababa, production, productivity, and postharvest operations
Ethiopia and Branch office in Kaduna State, were low and little affected by improved
Nigeria for the research in livestock production technologies.
and;
The main monetary policy instruments used before
(d) International Centre for Research in
1985 included selective credit controls, credit
Agroforestry (ICRAF), with head office in
ceilings, and interest rate controls. Although lending
Nairobi, Kenya and branch office in Benin City,
rates for agricultural purposes were deregulated in
Nigeria for research in fruit trees agriculture and
1987, the high rates of inflation that accompanied the
environmental management.
macroeconomic reforms, in excess of 40 percent per
Agricultural Sector Policies in Nigeria year in the early- to mid-1990s, contributed to
Nigeria occupies a total area of 92.4 million negative real agricultural lending rates (CBN, 1998).
hectare, consisting of 91.1 million hectare of land and In short, the concessional lending rates to agriculture
1.3 million hectare of water bodies. The agricultural before the introduction of SAP and the prevailing
area is 83.6 million hectares, which comprises arable high domestic inflation resulting from SAP sent
land (33.8 percent), land permanently in crops (2.9 mixed market signals to creditors during this period.
percent), forest or woods (13.0 percent), pasture (47.9 Most of Nigeria’s non-oil exports historically come
percent), and irrigable land or FADAMA 3 (2.4 from agriculture. Thus, it was necessary to formulate
percent). Average rainfall ranges from 300 mm in the specific policies that would ensure that the sector
extreme north to about 2,500 mm in the coastal areas. derived maximum benefit from SAP implementation.
Nigeria’s latest population estimate is above 160 Under the rural credit scheme introduced in 1977 by
million, of which 65 percent live in rural areas. the Central Bank of Nigeria (CBN), commercial
Agriculture’s contribution to the non-oil gross banks were required to open rural branches.
domestic product (GDP) is stable at about 40 percent According to Usman (2000), virtually all the rural
in recent years. More than 70 percent of the farming branches identified as viable were fully established
population in Nigeria consists of smallholder by commercial banks by 1992.
farmers, each of whom owns or cultivates less than 5 Under the monetary policy of the 1990s, other
ha of farmland. Thus, agriculture should be the focal guidelines included a loan repayment moratorium,
point of national economic growth agenda and smallholder loan guarantees, uncollateralized
reforms. smallholder loan schemes, extension of repayment
The roles of the Nigerian agricultural sector, periods for certain export crops, and an increase in
according to the Nigerian Agricultural Policy both minimum rural deposits and minimum rural
document include provision of food for the growing credit. The fiscal policy guidelines allowed a five-
population, foreign exchange earnings, employing a year tax exemption on private- sector profits earned
significant part of the labour force, and providing in any agricultural business (production, processing,
income for farming households. To attain or marketing). The exchange-rate policy guidelines
agricultural-sector goals, several policies were allowed all voluntarily repatriated foreign-exchange
formulated and implemented during the post- earnings in the agricultural sector to be tariff
independence years. Here we summarize some key exempted. Under the trade policy, some agriculture-
policies to better understand their linkages to the specific guidelines included the abolition of export
productivity constraints identified later in this review. prohibition, a ban on importing several agro-
industrial raw materials to stimulate local production,
From 1970–85, capital for agricultural production
and abolition of commodity boards to achieve more
and post-harvest activities came mainly from the
competitive pricing and higher farm incomes.
government’s budgetary allocations and secondarily
from existing lending institutions. However, as The World Bank Agriculture Development Policy in
observed by Ojo & Akanji (1996), “from the first Nigeria
through the fourth National Development Plans, Nigeria had implemented Bank-assisted
government spent less than 10 percent of its total agricultural development projects (ADPs) for 13
capital expenditures on agriculture, which years by 1988 when the Third Multi-State
42 ISSN: 1597 – 1740 Volume 8, February 2020
Impact of World Bank Agricultural Development Policies on the Socio-Economic Wellbeing …
Agricultural Development Project (MSADP III) was to ten percent annual growth (5.3% to 7.3% in per
appraised for an International Development capita terms) in the non-agricultural economy
Association (IDA) credit of SDR 75.0 million (excluding government and the oil and gas sectors).
(US$100.9 million equivalent). Among the lessons There are three sets of actors contributing to
from the completed ADPs were the need for: close development in Nigeria - the government, the private
research-extension linkages to provide relevant sector, and local communities. Accordingly, the
technology for the farmers; effective unified Bank's framework for assisting Nigeria has three
extension services; a privatized and efficient input pillars, each to be designed to improve capacity to
distribution system; private sector involvement in the contribute more effectively to Nigerian development.
provision of rural infrastructure and of the local
The three pillars of the proposed framework are:
government councils (LGCs) in their maintenance;
(a) improve economic governance; (b) create the
and efficient organizational structures for agricultural
conditions for rapid private sector-led, poverty-
development. This experience, coupled with the
reducing growth; and (c) enable local communities to
emphasis of the 1988 Agricultural Policy for Nigeria
take charge of their own development. Taken
on the development of institutional capacity and an
together, these three areas are fundamental to
increased role for the private sector, influenced the
achievement of any poverty reduction strategy.
design of the MSADP III, which provided assistance
Nigeria's economy cannot grow, poverty cannot be
to Lagos, Ondo, Osun, Oyo and Rivers states. Nigeria
reduced, and Nigeria will not meet the International
is going through a difficult political and economic
Development Goals unless its substantial public
transition after 30 years of military rule. The then
resources are used more effectively and equitably;
federal government, headed by General Olusegun
unless the non-oil sector exhibits strong growth; and
Obasanjo, was faced with an array of complicated
unless there is full participation of the Nigerian
issues that he tried to overcome for Nigeria to be
people, particularly the poor, in the development
successful in its transition to a democratic political
process
system and a vibrant market economy. According to
Lanjouw (2001), these problems include: An Overview of World Bank Rural Poverty
Reduction Strategy: the ADP Approach
(a) pervasive poverty and widespread
Nigeria as an agrarian country, the production of
unemployment;
foods and other raw materials is a necessary
(b) deterioration of government institutions over the
ingredient for the take-off of all other sectors of the
period of military rule, and consequently
nation’s economy. At the national level, the poor
inadequate capacity at all levels of government
performance of the agricultural sector became
to deliver critical services effectively;
worrisome in the 1970s–1980s decades, when the
(c) sporadic violence between ethnic groups;
country's food import bills rose from $1.75 million in
(d) a legacy of widespread corruption;
1970 to $1.872 million 1982 (FMANR, 1997). As a
(e) an intense debate over federalism and the
primary production sector, agriculture itself has to be
relationships among the Federal Government,
modernized in order to achieve the much-needed
the state governments and local government
increase in the productivity of the sector. This
authorities (LGAs); and
modernization has been through high government
(f) a concern among Nigerians that the military
annual investments in agricultural research and
could once more return to power.
extension services.
Nigeria is in many ways two economies. Part of it
The Federal Government introduced the
is a middle-income oil-producing economy of
Agricultural Development Programme (ADP) among
perhaps five million people and a per capita income
others. The ADP is primarily an extension organ put
of about US$2200. The other part is a non-oil
in place by the Federal government in line with
producing economy of 150 million people (about
World Bank strategy to advance food and fibre
76% of whom are in poverty) with an average per
production in Nigeria. The programme was launched
capita income of perhaps US$200. It is clear that the
in 1975 with the aim of accelerating food production
fundamental cause of poverty in Nigeria is the
and increasing farmers' income through an integrated
economic stagnation that the country has experienced
farm inputs supply and overall development of
for almost two decades. Substantial poverty reduction
agriculture. The state government, federal
would require around five percent annual growth in
government and the World Bank funded the
agriculture (2.0 to 2.3% in per capita terms) and eight
programme in order to address the problem of
ISSN: 1597 – 1740 Volume 8, February 2020 43
International Journal of Governance and Development Volume 8, February 2020.
agricultural production and the role extension service states received a total sum of N145.440m between
play in the overall agricultural development. This 1981 and 1985, it recorded 1.7 tonnes of millet
makes the ADP the main agent of extension delivery 462,483 tonnes of maize, constructed 1462km of
in the new system. For the laudable objectives of roads, 92 dams built 184 farm service centres and
agricultural extension to be achieved, extension 1200 boreholes were constructed. The state-wide
agents have to play a vital role as they are responsible projects initially programmed to end after 5 years of
for transferring useful information necessary for initiation was reprogrammed to last longer because of
"change" to the farmers. The extension agents also the giant stride achievements in agricultural
perform the function of counselling the farmers on production by the individual states.
how to make wise decisions in farm management.
It is opined by Idachaba (1988) that the success
The extension agents are expected to play a
further encouraged the nation-wide agricultural
significant role in the extension system, and they will
development project, which according to Idachaba,
be responsible in the dissemination of agricultural
constitutes the single largest agency charged with the
technologies to the farmers, link research and
responsibility of agricultural extension in Nigeria.
farmers.
The decision to speed up the appraisal process of the
The ADP which began as a World Bank loan ADPs by using a number of existing ADPs, provides
assisted integrated rural development packages with state-wide coverage to strengthen agricultural
the establishment of three pilot/enclaves was based services and promote agricultural production. The
on the premise that a combination of inter-related first Multi-state Agricultural Development Project
factors comprising the right technology, effective (MSADPI) covered seven (7) states which include
extension access to physical and production Project (MSADP II) covered four middle Belt States,
enhancing inputs, adequate market and other which are Niger, Gongola and Kaduna and the third
infrastructural facilities are essential to get Multi – State Agricultural Development Project
agriculture moving (FMANR, 1997).. The activities (MSADP II), were an improvement on the previous
of the first-generation enclave projects established in MSADPs because the lessons learnt from the earlier
Funtua, Gombe and Gusau in 1975 involved in Road projects were taken into account in the design of the
construction, Dam construction, Rehabilitation of third Multi-state ADP in 1989. The lessons include
farm roads and maintenance of the existing roads, as provisions of support services for agriculture and
well as other projects that were instant success in the provisions of logistic and technical support for the
localities where they were situated. With a World states. The Third Multi-State included states that
Bank loan backing on finance the enclaves performed were not covered originally and the newly created
beyond expectation carrying out activities that states.
enhanced agriculture with farm families of about
In operational terms the funding pattern bothers on
350,000 people and the location of farm service
the sustainability of the ADP such that the gradual
Centres and provision of inputs useful for farm
withdrawal of the World Bank assistance would pave
operations.
way for continued existence of the ADP. Presently,
The success recorded by the pilot ADP led the the World Bank loan had been finally withdrawn
federal government to establish six more enclaves at from the ADP - a factor which is critical to the
Ayangba, Lafia, Bida, Ilorin, Ekiti-Akoko, and Oyo working conditions of the ADP. The effect of the
North between 1979 and 1982. The vision of the ADP withdrawal would then have implications on the
extended beyond the immediate task of running the performance of the extension activities.
enclaves thus, useful lessons in implementing of the
Rationale for World Bank's Involvement in
new concepts were provided by the enclave’s projects
Agricultural Development Projects
paving the way for extension of the projects to other
The World Bank’s involvement in this project
areas and Local Government not covered by the
according to Adegboye (1998) will: (a) strategically
ADP. The demands for the benefit of ADP to be
strengthen government’s capacity to undertake policy
spread to all existing states led to the installation of a
and institutional reforms for sustainable rural
generation state-wide ADPs with some of them
development and poverty reduction by bringing in
taking the old enclave as their headquarters. The first
relevant experience from other parts of the world.
set of state-wide ADPs took place in Bauchi 1981,
The Bank is the only lender with sufficient financial
Kano state in 1982, Sokoto state in 1983 and Kaduna
and technical leverage to lead such reforms in the
state 1984. The state-wide ADP projects in these
rural sector; (b) accelerate the process of
44 ISSN: 1597 – 1740 Volume 8, February 2020
Impact of World Bank Agricultural Development Policies on the Socio-Economic Wellbeing …
diversification of the economy through support to reveal that for more than two decades, the agricultural
potentially profitable private sector investments in sector of the Nigerian economy has continued to
diverse rural production, processing and marketing perform below expectation despite the huge sums of
activities, with the public sector playing the role of money being allocated to the sector in each year’s
catalyst, and making the investments which would budget. Similarly, Businessday observed that in
remove the infrastructure constraints on Fadama 2012, about N78.98 billion was mapped out for the
development. agricultural sector. Also, during the same year, over
72 million dollars donated by Food and Agricultural
The Bank, again because of its long involvement
Organisation (FAO) and the World Bank were
in investing in agricultural and rural development, is
distributed to the 36 states of the federation in
well positioned to facilitate the development of
addition to the year’s allocation. In his critique of
public-private sector partnership and to lead donor
Nigeria agricultural development policies, Ogboru
effort in facilitating investment in economic
(2002) opined that the poor situation of the
enterprises in the rural areas; (c) assure the scale of
agricultural sector raises questions as to the
financing required to make a significant impact on
effectiveness of the World Bank assisted Agricultural
poverty in the rural areas, a scale that cannot be met
Development Fadama programme which was
by other donors currently operating in the rural areas
established with the hope that such project can
in Nigeria. Bank’s financing is a leverage for
radically transform agriculture and increase the
enhanced involvement of other donors in rural
country’s food and fibre needs of the rapidly
development; and (d) Global Environmental Fund
increasing population.
(GEF) assistance will enable Nigeria to protect and to
utilize sustainably the country’s biodiversity beyond In spite of the presence of ADP, food shortages
a nationally justified and affordable level. Global have been getting worse from year to year. For
benefits will include capacity for enhanced instance, according to the Nigeria Bureau of Statistics
monitoring, information exchange, and improved (NBS, 2007), in 2006, the Country’s Gross Domestic
skills to identify and manage ecologically threatened Product (GDP) at 2002 constant factor cost was
areas in a sustainable manner. National and local N83.5 billion; agriculture contributed a total of N33
benefits will include sustainable use of natural billion or 40.5%. However, at current factor cost, this
resources and habitats (direct uses), distributional sector’s contribution to GDP declined from 22% in
benefits, and incremental protection of ecological 2003 to 28% in 2008 with unsteady improvement to
functions. The overall aim is poverty eradication in 31.3% in 2009 and 6.7% in 2012, due to unsteady
Nigeria productivity of the agricultural sector. Something
therefore must be wrong with the World Bank
Statement of the Problem
assisted agricultural development policies and
Nigeria has huge agricultural resource endowment,
programmes such as the Fadama programme, its
yet the population is facing hunger and poverty. To
contents and implementation strategies which, over
address this problem of hunger and poverty, the
the years of its operation has caused the agricultural
World Bank developed and implemented a number of
sector to remain almost stagnant.
agricultural development policies and programmes in
Nigeria which include Agricultural Development To this end, the specific objectives of the study are
Projects (ADP) and Fadama programme. to:
Chukwuemeka & Nzewu (2011) in their study of (a) Determine the poverty level of small-holder
World Bank agricultural development programme in farmers in Edo state.
Nigeria, evaluated the extent of World Bank (b) Examine the effectiveness of the World Bank
Agricultural Development Projects in Nigeria with a assisted Fadama programme in enhancing the
view to identifying the areas of problems. The living standard of small-holder rural dwellers
findings revealed among others, that policy approach in Edo State.
that excluded the beneficiaries from participating in (c) Ascertain the constraints affecting the
the project design, planning and implementation is effectiveness of the World Bank sponsored
not desirable. They also observed that recruitment of Fadama programme as a vehicle for poverty
extension staff was not based on expertise and reduction in Edo State.
professionalism, but on political considerations. In Hypotheses of the study
the same vein, Onyeahialam (2002) study of World This research thesis tested the following
Bank and Agricultural Development in Enugu State hypotheses:
ISSN: 1597 – 1740 Volume 8, February 2020 45
International Journal of Governance and Development Volume 8, February 2020.
The average family size was 7. The findings (N174,262.47) the poverty level of the small-holder
indicated that the respondents have people farmers was determined, and the results presented in
depending on them and which they need to cater for. Table 3. As observed, most (59.3%) of the farmers
This, itself can be an important motivation to were non-poor, 23.4% were moderately poor while
participate in the programme since the need to cater 17.3% were very poor. The result showed that about
for their families has been described as a strong 40% of the farmers were living below the poverty
motivation for individuals to seek for ways of line. The data used for computing the poverty status
improving their productivity and income. Crop of the respondents was based on their income range
farming was the primary occupation of most since participating in the agriculture development
(86.3%) of the farmers. Having most of the project. The fact that majority of project participants
respondents in crop farming could be attributed to were non-poor probably suggests the positive role of
the type of soil in the area and what they know how the Fadama project in lifting farmers out of poverty.
to do best. The findings suggest that participants in
Table 3. Poverty status of Respondents
the programme were economically engaged. Their
Status Frequency %
expectation from the programme was that it would Non-poor 147 59.3
enhance their livelihood. (mean income>174,262.47)
Moderately poor 58 23.4
Objective one: Determine the poverty level of small- (mean income: 87,131.24 -
holder farmers in Edo state 174,262.47)
Table 2 shows the income of the respondents Very poor 43 17.3
before and after participation in the project. The mean (mean income<87,131.24)
income before and after the project were N87,845.73 Total 248 100.0
*Mean Income = N261,393.71; Poverty Line: N174,262.47
and N261, 393.71 respectively. The difference Source: computed from field survey data, 2012
(N173,547.98) in the result suggest that participation Objective two: Examine the effectiveness of the
in the project had indeed enhanced the farmers World Bank assisted Fadama programme in
income. This finding indicates the positive role of enhancing the living standard of small-holder rural
agricultural development projects. Similar results dwellers in Edo State
have been reported by Ajayi & Nwalieji (2010) who
Table 4 examined respondents’ perception of the
noted that participant farmers in Fadama project
effectiveness of the Fadama project in enhancing
recorded increased income. Based on the average
their living standards or welfare.
income (N261,393.71) and poverty line
Table 4. Perceived effectiveness of Fadama programme in enhancing the living standards of respondents
Strongly Agreed Disagreed Strongly Total
agree disagreed
Freq % Freq % Freq % Freq % Mean SD
Better and adequate feeding 40 16.1 130 52.4 59 23.8 19 7.7 2.77* .81
Training of children or family members in school 32 12.9 122 49.2 74 29.8 20 8.1 2.67* .80
Purchase of communication gadgets e.g. GSM phones 25 10.1 131 52.8 62 25.0 30 12.1 2.61* .83
Expansion of farm 19 7.7 101 40.7 128 51.6 2.56* .63
Financial support to family member and friends 14 5.6 110 44.4 124 50.0 2.56* .60
Able to afford better medical services 22 8.9 74 29.8 122 49.2 30 12.1 2.35 .81
Purchase of electronics e.g. television, radio and CD player. 20 8.1 64 25.8 116 46.8 48 19.4 2.23 .85
Improvement in dressing i.e. better clothes and shoes 10 4.0 82 33.1 103 41.5 53 21.4 2.20 .82
House repair/maintenance 19 7.7 61 24.6 114 46.0 54 21.8 2.18 .86
Purchase of transport facilities e.g. bicycles, motor cycles, cars 15 6.0 44 17.7 128 51.6 61 24.6 2.05 .82
Improvement in home furniture 10 4.0 44 17.7 130 52.4 64 25.8 2.00 .77
Living in a better and modern house 11 4.4 40 16.1 131 52.8 66 26.6 1.98 .78
*Effective (mean > 2.50); SD = Standard Deviation
Source: field survey data, 2012
Respondents agreed that the programme had poverty status could be attributed to the benefits or
improved their family feeding (mean = 2.77), gains achieved from participating in the programme.
enhanced their ability to educate/train their children Similar results of the positive contribution of Fadama
or family members in school (2.67), their ability to project to poverty reduction has been reported by
purchase and use communication gadgets e.g. GSM Ajibefun and Abdulkadri (1999).
phones (2.61), as well as expansion of their farms
Table 5. Poverty status of respondents before and
(2.56). In addition, the programme had enabled them
after enrolling in Fadama project
to give more financial support to family members
(2.56) through increased income derived from their Poverty Status Poverty Status
Status
farming activities. Similar impact of the Fadama (Before) (After)
Freq. % Freq. %
project on farmers’ welfare has been reported by
Very poor 147 59.3 43 17.3
Obadan (2002). However, respondents were not Moderately poor 21 8.5 58 23.4
generally agreed that it had benefited them medically Non-poor 80 32.3 147 59.3
although 29.8% of them agreed that it has improved Total 248 100.0 248 100.0
their health condition through being able to afford Source: field survey data, 2012
better medical services. It had equally not really Objective Three: Constraints affecting effectiveness
added value to their lives with respect to house of Fadama programme
repairs/maintenance (mean = 2.18), purchase of
The perceived constraints affecting effectiveness
transport facilities (2.05), home furniture (2.00) as
of the programme is shown in Table 6. The
these were more capital intensive.
constraints with mean of 3.00 and above were
Poverty status of respondents before and after considered to be serious. From the table, limiting or
enrolling in Fadama project insufficient government assistance (mean = 4.36),
Table 5 revealed the poverty status of the high dues and levies charged by Fadama Users Group
respondents before and after enrolling in the (3.50), corrupt and dishonest leadership (3.25) and
FADAMA programme. The table shows that before non-availability of inputs (3.11) were considered
they enrolled in the project, most (59.3%) of them serious constraints affecting the effectiveness of the
were very poor, while 32.3% were non-poor. On the Fadama operations in the study area. Equally
other hand, after enrolling in the project, most considered to be a serious limitation to the
(59.3%) of the respondents became non-poor, while effectiveness of the project was insufficient capital
only 17.3% were very poor. From the table it could given participants in the programme (mean = 3.40).
be seen that the proportion of farmers/respondents Majority of the respondents consider late provision of
who were very poor reduced from 59.3% to 17.3%. farming inputs and related as limiting their ability to
Similarly, the proportion of the non-poor increased fully harness the gains of their participation in the
from 32.3% to 59.3%. The transformation in the program.
Table 6. Perceived constraints affecting effectiveness of Fadama programme
Constraints Very Serious Moderately Least Not Total
serious serious serious serious
Freq. % Freq. % Freq. % Freq. % Freq. % Mean SD
government assistance is 104 41.9 136 54.8 2 .8 5 2.0 1 .4 4.36* .65
limiting/insufficient
High dues and levies charged by Fadama 199 80.2 10 4.0 2 .8 37 14.9 3.50* 1.08
users‘ group
Insufficient capital given by the Fadama 148 59.7 99 39.9 1 .4 3.40* 1.47
programme
Corrupt and dishonest leadership 183 73.8 2 .8 4 1.6 59 23.8 3.25* 1.29
Non-availability of inputs 46 18.5 59 23.8 27 10.9 108 43.5 8 3.2 3.11* 1.24
Members refusal to repay loans 153 61.7 3 1.2 92 37.1 2.86 1.45
High rate of illiteracy among members. 93 37.5 7 2.8 61 24.6 87 35.1 2.43 1.31
Low participation of members in group 79 31.9 4 1.6 98 39.5 67 27.0 2.38 1.19
activities.
Poor organization of group’s activities 33 13.3 6 2.4 127 51.2 82 33.1 1.96 .94
Lack of cooperation among members 55 22.2 3 1.2 33 13.3 157 63.3 1.82 1.23
*Serious (mean > 3.00); SD = Standard deviation, Freq=Frequency
serious limitation. The result suggest that most World Bank agricultural development programme
respondents agreed that poor funding was a serious like any other organization, hinges on three factors
limitation to the effectiveness of the Fadama that is, adequate funding, competent and stable
objectives. The findings of Kudi et al equally management and adequate staffing. Also, this
revealed that poor funding or inadequate capital research observed a very weak funding status for
limits participants’ access to critical inputs needed to these programmes designed to achieve desirable and
purchase and sustain the recommended Fadama laudable objective. The problem of funding has
farming practices. resulted into reduced extension activities, and that in
turn has pushed some staff implementing these
The calculated chi-square value (135.54) was
policies to voluntarily leave the system for greener
greater than the tabulated chi – square (3.85) at the
pastures. If the World Bank want their policies well
5% level of significance. This means that there was a
implemented to achieve its determined results, then
significant difference in respondents’ perception
they will have to channel more funds into the
about the poor funding being a significant limiting
implementation of these policies and programme and
factor in the full realization of the Fadama project
equally develop means of compelling the federal and
objectives. In other words, poor funding was found to
state government to contribute their counterpart
be a significant factor hampering the realization of
funds for agricultural project implementation as and
the project objectives. The null hypothesis is
when due.
therefore rejected in favour of the alternative
hypothesis. Based on these research findings, it is
recommended that the government should meet its
Conclusion and Recommendations
counterpart to support projects identified by project
The results of the study showed that the project has participants. Most complained that the government
indeed contributed to improved welfare and income support was limiting which hindered them from
among participation farmers. However, its accessing necessary inputs. Also, FUGs levy should
effectiveness was curtailed or limited by several be reduced by increasing its counterpart funding. In
factors such as insufficient government assistance addition, the World Bank and Nigeria Government
and high levies thereby hindering access to inputs. can scale-up support for new technology generation,
Also, the study further addressed the broader question transfer and adoption, with more focus on research
of whether Nigeria is making progress by adopting institution approaches, including more support and
the World Bank agriculture development policies. partnership with international bodies. In addition,
In satisfying the objective of this study from the Farmers should be linked to sources of farm inputs as
policy analysis perspective and deriving empirical there were complaints that they couldn’t get inputs of
relationships between World Bank policies on the right quality.
agricultural development and poverty among the References
smallholder rural dwellers, we can say that these
C. Iheanacho, A. Abaja and L. Harina, Beneficiating
policies and programmes have not addressed the assessment of the second National Fadama
overall poverty crises in Nigeria. This could be seen Development, A draft report submitted to Adamawa
from increased state of poverty among the rural SFDO, 2007
dwellers who are the direct target of these agricultural A. M. Kudi, S.O. Ani and A.A. Oredipe, Poverty reduction
development policies. Other causes of the state of and increased productivity through empowerment
poverty were traced to poor agricultural development CPU – NFDO Fadama Development Project October
policy implementation, inconsistent macroeconomic 2008. Pp. 4
policies, weak diversification of the economic base, A. R. Ajayi, and A.H. Nwalieji, “Impact of Anambra State
gross economic mismanagement, lack of effective Fadama Project Phase-1 on the Socio-economic Life
of the Rural Farmers”. Journal of Humid Ecology. 29
skills training, weak inter-sectorial linkages, high
(2), 2010, Pp.129-139.
import dependence and heavy reliance on crude oil
Businessday, N79bn Too Small for Agriculture in 2012
exports, inadequate access to assets such as land and
Budget, Businessday, (2012),
capital by the smallholder rural dwellers, inadequate www.businessdayonline.com/NG/index.php/markets/
access to the means of fostering rural development in agribusiness/36111-n79bn-too-small-for-agriculture-
rural communities, inadequate involvement of the in-2012-budget (accessed).
poor in the design of this agricultural development
policies, among others. The effectiveness of the