APPRAISAL OF RURAL INCOME GENERATING ACTIVITIES FOR DEVELOPMENT IN IJESA REGION, OSUN STATE, NIGERIA

Abstract

This study appraises the operational mechanism of rural income generating activities in Ijesa Region in Osun State of Nigeria with a view to improving the operations for higher productivity and promoting the enhancement of local and regional economy, growth and development. The research’s goal is to assess the effect of the activities on local and regional development in the study area. Data were collected from both primary and secondary sources. The target populations were the residents and providers of credit facilities for income generating activities in the study area. The research instruments were two different sets of questionnaire. The first set focused on the resident-population of the region (Household Questionnaire); and the other on the providers of credit facilities (Management Inventory Questionnaire) in the region. Also, a Focus Group Discussion (FGD) Schedule was designed that guided further interactions with the people. Secondary data were sourced from publications of Food and Agriculture Organisation, United Nations, World Bank, Universities and other research institutions as well as individual researchers. Government ministries and agencies also provided relevant data for the study area. All the settlements in the study area, based on their respective ‘‘Central Service Functions’’, were stratified into four socio-economic activity-zones namely: High-Order Centres, Intermediate Order Centres, Lower-Order Centres and Zero-Order Centre. A total of 65,146 household-heads and 198 functional Order-Centres were identified. Stratified random sampling method was used to pick the samples for the surveys across the selected LGAs and socio-economic activity-zones in the region. The Household Questionnaire was administered on 1,629 household-heads, while the Management Inventory Questionnaire was administered on 138 credit facility providers across 20 sampled settlements in the region using Cochran Equation. Out of these numbers, 1,303 household-heads and 100 providers of credit facilities returned statistically useable completed copies of the questionnaires; which were used for data analysis. Data collected were supplemented by information collected through Focus Group Discussions and physical observations conducted in the region. The data were processed through the use of the Statistical Package for Social Sciences (SPSS) Version 21. Tables and graphs were used to present quantitative results of the processed data and appropriate statistical tools such as Chi-square, Pearson’s Product Moment Correlation, Phi-Co-efficient Correlation, Biserial Correlation, Point Biserial Correlation and Rank Biserial Correlation tests were applied in testing different relationships and associations among the identified variables as well as used in the testing of the set hypotheses. The study revealed, among others, that rural income generating activities constitute a major source of employment as at least 49 per cent of the respondents that were involved as their primary employment and 23 per cent as their secondary employment. These were the pivot for the local and regional economy and development in the area. The study discovered a highly diversified income generating: activities in the region spanning through agriculture, trading and artisanship in ratios 31:32:37. However, the entrepreneurs and the region have not been able to benefit fully from the activities because of small operational scale occasioned by poor access to credit facilities and minimal government support and assistance. The study further established that the rural income generating activities have profound positive effects on local and regional development in the study area. This was asserted through a Point Biserial correlation test which showed that income from rural income generating activities assisted the people to be significantly involved in community development projects. While a Chi-square test established a high level of utilisation of local resources in income generation in the region, a Phi-coefficient correlation test also confirmed that rural income generating activities contributed significantly to regional development in the region. The study recommended policy framework anchored on better access to credit facilities by the entrepreneurs and improved government assistance, support and control. Specific recommendations for the region under study were based on the improvement of marketability of the products and services of rural income generating activities from the region. This is with a view to boosting local and regional economy, growth and development in the study area.