ABSTRACT

The study assessed the effects of non-farm activities on the poverty status of rural households in Abia state. The specific objectives were to describe the socio-economic characteristics of respondents, ascertain the non-farm income generating activities engaged by rural households in the study area, analyse the income earned from the nonfarm activities, assess the poverty status of rural households in the study area, determine the extent to which non-farm activities have influenced the poverty status of respondents in the study area, and to identify the constraints to participation in nonfarm activities. Multi-stage sampling technique was used to select 176 respondents. Data were collected using questionnaire and analyzed using descriptive statistics (such as frequency, percentages and mean) and inferential statistics (such as logistic regression, z-test and multiple regression analysis). The results revealed that 71.02% of the respondents were married. The mean years of schooling ofthe respondents was 10 years. The respondents have the mean age of 43.23 years, and 56.25% of the respondents are male. The mean household size ofthe respondents was 6 persons. More of the respondents were engaged in non-farm activities under service category. Also, more of the respondents were engaged in petty trading. The estimated annual mean income from non-farm activities was N524,987.42, while trade/commerce category gave the highest estimated annual mean income of N482,891.89. The mean per capita household food expenditure per month was estimated to be N7907.51 and this was used to establish the poverty line of N5271.67(0.49 US Dollar per day), which shows that 57.95% of households are non-poor. The study, also, revealed that non-farm income influenced the poverty status ofthe non-farm respondents to a large extent, in terms of increased income, better feeding, better medical care, better dressing, sound education, and contribution to community development. The major constraints to participation in non-farm activities included increasing cost of fuel and other needed materials, inadequate fund, bad state ofthe roads, and lack of credit facilities. The logic regression analysis revealed that years in school and gender were negatively significant at 5%, while household size was positively significant atl%. Furthermore, there was a significant difference in the mean annual income of non-farm and farm activities at p<0.05. The multiple regression analysis revealed that petty trading, restaurant/beer parlour and teaching at p<0.01, tailoring and carpentry at p<0.05 have significant positive influence on Per Capita Household Consumption Expenditure. Based on the findings of the study, it is concluded that non-farm income has to a large extent positively influenced the poverty status of respondents in the study area. The study, therefore, recommended that, government and development agencies should improve access to credit by rural households, establish skill acquisition and entrepreneurial centres, encourage rural households on the more productive and lucrative non-farm activities, provide basic infrastructural facilities, integrate the promotion of diversification into non-farm activities in their extension messages and make farming more profitable.