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Trends in Agricultural Economics
  Year: 2008 | Volume: 1 | Issue: 1 | Page No.: 35-41
DOI: 10.3923/tae.2008.35.41
Income Portfolios in Rural Nigeria: Composition and Determinants
R.O. Babatunde

Abstract:
This study uses household`s survey data to analyze income portfolios and determinants in rural Nigeria. The results indicate that, while farming accounts for half of total household`s income, the other half is from different off-farm sources. Considering income composition across poverty groups, the results show that farm and remittance income are the main income sources for the poor households and therefore any policies that can address these income sources will have the greatest impact on poverty reduction. On the other hand, off-farm employment especially self-employed activities are the main income sources of the relatively better-off households. Econometric analysis shows that household assets, size, farm size, social infrastructure and market access are important determinants of total income. Policies that would simultaneously promote the development of the agricultural and off-farm sectors are suggested to reduce poverty in rural Nigeria.
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