EFFECT OF NON-FARM INCOME-GENERATING ACTIVITIES ON POVERTYREDUCTION AMONG RURAL HOUSEHOLDS IN ABIA STATE, NIGERIA
Abstract
The study examined the effect of non-farm income-generating activities on poverty reduction in Abia state, Nigeria. Specifically, the study examined the income earned from various non-farm activities, assessed the poverty status of the rural households in the study area and determined the extent to which non-farm activities have influenced the poverty status of rural households in the study area. Multi-stage sampling technique was used to select 176 respondents. Data were collected using questionnaire and analyzed using descriptive (such as frequency, percentages and mean) and inferential (multiple regression analysis)statistics. The study showed that non-farm income constituted 64.33% of the households' total income with a total income of N83,473,000.00 and percentage income from petty trading(25.23%) constituted the largest share among the non-farm activities. The mean per capita household food expenditure per month wasestimated to beN7907.51, and this was used to establish the poverty line of N5271.67, which showed that 57.95% of households were non-poor. The study also revealed that non-farm income influenced the poverty status of the respondents to a large extent in terms of increased income, feeding, medical care, dressing, education, and contribution to community development. The multiple regression analysis revealed that petty trading, restaurant business and teaching were significantat 1%level, while tailoring and carpentry were significant in reducing poverty at 5% level. The hypothesis that non-farm income-generating activities do not significantly influencepoverty reduction in Abia state, Nigeria was, therefore, rejected. The study concluded that non-farm income has to a large extent positively influenced the poverty status of respondents, therby contributed to poverty reduction in the study area. The paper recommended that, government and development agencies should establish skill acquisition and entrepreneurial centres, provide basic infrastructural facilities that promote non-farm activities, but not to the neglect of extension effort so that food production will not be in jeopardy .
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