Productivity and Welfare Effects of Nigeria's e-Voucher-Based Input Subsidy Program

Wossen, Tesfamicheal; Abdoulaye, Tahirou; Alene, Arega D.; Feleke, Shiferaw; Ricker‐Gilbert, Jacob; Manyong, Víctor M.; Awotide, Bola Amoke

doi:10.1016/j.worlddev.2017.04.021

Cited by 80 publications

(92 citation statements)

References 24 publications

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“…Farmers also developed more capacity on maize farming with a percentage of 35.5% (70) of total respondents. This supports the view of Wossen, et al, (2017) that agricultural projects targeted to reduce rural poverty and to increase food security could improve productivity and welfare outcomes of beneficiary smallholder farmers.…”

Section: Impact Of Red Hub Project On Maize Farmers Incomesupporting

confidence: 76%

“…It is the view of Tagne, et al, (2008);Mokhel, et al, (2016);Melusi, et al, (2016) that maize is the foremost income earner to farmers to most developing countries with poor resources. Similarly, Wossen, et al, (2017) observed that agricultural projects targeted to reduce rural poverty and to increase food security could improve productivity and welfare outcomes of beneficiary smallholder farmers. Eastern Cape Provincial government in their effort to encourage commercial production of maize, processing and marketing targeted at increasing maize farmers' income and food security in the study area introduced the Rural Enterprise Development Hub Project model in partnership with the Development Bank of Southern Africa and ECRDA, 20132014/15;and 2015/16 Annual Reports).…”

Section: Introductionmentioning

confidence: 99%

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Analysis of the economic impact of Rural Enterprise Development Hub Project on maize farmers in Mqanduli, South Africa

Iortyom

Mazinyo

Nel

2018

IJARe

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The research analysed the economic impact of Rural Enterprise Development Hub Project (RED Hub Project) on maize farmers. A sample of 200 maize farmers was drawn from a total of 398 beneficiaries of the project using Cochran sample size formula. Convenience sampling was done at the second stage using structured questionnaires which were administered on the beneficiaries of the project from 9 villages in Mqanduli Community. With the use of a ‘before’ and ‘after’ approach the study determined the provision of market for supply of maize produce by benefitting farmers and change in annual income of maize farmers. The data were analysed using descriptive and inferential statistics. P-value less than 0.05 were considered to be statistically significant. The results revealed that there has been a significant positive impact of RED Hub Project on the income of benefitting maize farmers per hectare and per farm. This is represented by 100% provision of market by the project for maize produce, a significant (t-statistics 179.4 and p-value less than 0.05) mean change of 212.47% in income per hectare in the area, a significant (t-statistics 38.4 and p-value less than 0.05) improvement of the mean income of benefitting maize farmers per farm by 264.32% in the area. Therefore, the study recommends sustained purchase of maize produce by the project from its beneficiaries and an extension of purchase from all maize farmers in Mqanduli.

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Section: Impact Of Red Hub Project On Maize Farmers Incomesupporting

confidence: 76%

Section: Introductionmentioning

confidence: 99%

Analysis of the economic impact of Rural Enterprise Development Hub Project on maize farmers in Mqanduli, South Africa

Iortyom

Mazinyo

Nel

2018

IJARe

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“…Empirical evaluations of the impact of fertilizer subsidies on fertilizer application and associated inputs remain inconclusive, and the impacts may differ by context. Several studies show that fertilizer subsidy programs have increased fertilizer use intensity (Chibwana et al 2014;Mason and Jayne 2013) and productivity (Dorward and Chirwa 2011;Liverpool-Tasie and Takeshima 2013;Lunduka, Ricker-Gilbert, and Fisher 2013;Mason and Jayne 2013;Wossen et al 2017). On the other hand, other studies show that fertilizer subsidies crowd-out commercial fertilizer use and hamper the development of the commercial fertilizer sector (Mason and Jayne 2013;Ricker-Gilbert, Jayne, and Chirwa 2011;Xu et al 2009;Takeshima and Nkonya 2014; Ricker-Gilbert and Jayne 2017).…”

Section: Introductionmentioning

confidence: 99%

Too much of a good thing? Evidence that fertilizer subsidies lead to overapplication in Egypt

Kurdi¹,

Mahmoud²,

Abay³

et al. 2020

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As part of a national policy to ensure a certain level of food self-sufficiency in strategic crops, the government of Egypt subsidizes nitrogen fertilizer directly by distributing quotas of subsidized fertilizers to farmers and indirectly by subsidizing natural gas used by local fertilizer factories. The implication of this subsidy on farmers' fertilizer demand and productivity remains unknown. Using a detailed agricultural survey collected from smallholder farmers in Upper Egypt, we show that nitrogen fertilizer application rates are substantially in excess of crop-specific agronomic recommendations. We exploit eligibility criteria and other sources of variation to show that farm plots with easier access to the subsidy tend to use more subsidized nitrogen fertilizer and less phosphate fertilizer. Easier access to the subsidy increases use of total nitrogen fertilizer per unit of land, mainly because of the increase in subsidized nitrogen fertilizer. In particular, the fertilizer subsidy program in Egypt is associated with significant overapplication of nitrogen fertilizer. Such overapplication of fertilizer is expected to adversely affect soil, water, and environmental health. Our findings have important policy implications for Egypt and other African countries known for input subsidy programs. As Egypt is currently moving on from the successful implementation of a comprehensive macroeconomic reform program towards sector-level reforms, our results suggest that eliminating fertilizer subsidies is a good place to start.

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“…The e‐wallet system technology ensures that a Nigerian farmer receives farm input subsidy support from the FGN through accredited agro‐dealers, provides vital agro‐information alerts, is available to the agricultural extension system, and facilitates microlending and insurance schemes (Olomola, ). The rapid adoption of the e‐wallet program has generated a great deal of speculation and optimism regarding its effect on economic development in the country (Adenagan, Fagbemi, Osanyinlusi, & Omotayo, ; Adesina, ; Grossman & Tarazi, ; Uduji & Okolo‐Obasi, ; Wossen et al, ). However, an emerging body of research shows that the reduction in communication costs associated with the e‐wallet program has intangible economic benefits, including the improvement of agricultural and labor market efficiency as well as producer and consumer welfare in specific circumstances and areas (Adebo, ; Fadairo, Olutegbe, & Tijani, ; Nwalieji, Uzoegbunam, & Okeke, ; Tiri, Ojoko, & Aruwayo, ).…”

Section: Introductionmentioning

confidence: 99%

The impact of e‐wallet on informal farm entrepreneurship development in rural Nigeria

Uduji

Okolo‐Obasi

Asongu

2018

E J Info Sys Dev Countries

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Transforming agriculture from a largely subsistence enterprise to a profitable commercial venture is both a prerequisite and a driving force for accelerated development and sustainable growth in sub-Saharan Africa. The objective of this investigation is to assess the impact of the Federal Government of Nigeria (FGN) e-wallet program on informal farm entrepreneurship development in rural Nigeria. Informal sector farmers are those that are not legally registered at the national level although could be connected to a registered association.The research is motivated by the absence of literature focusing on the problem statement or objective of the study. One thousand one hundred and fifty-two rural farmers were sampled across the six geopolitical zones of Nigeria. Results from the use of a bivariate probit model indicate that the mobile phone-based technology via the e-wallet program is a critical factor that has enhanced farm entrepreneurship in rural Nigeria. However, results also show that the impact of mobile phones (as a channel to accessing and using modern agricultural inputs) is contingent on how mobile networks are able to link farmers who live in rural areas and work mainly in farming. The results suggest that increasing mobile phone services in rural Nigeria enhances farmers' knowledge, information, and adoption of improved farm inputs and by extension, spurs rural informal sector economic activities in sub-Saharan Africa. Implications for practice, policy, and research are discussed.

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Productivity and Welfare Effects of Nigeria's e-Voucher-Based Input Subsidy Program

Cited by 80 publications

References 24 publications

Analysis of the economic impact of Rural Enterprise Development Hub Project on maize farmers in Mqanduli, South Africa

Analysis of the economic impact of Rural Enterprise Development Hub Project on maize farmers in Mqanduli, South Africa

Too much of a good thing? Evidence that fertilizer subsidies lead to overapplication in Egypt

The impact of e‐wallet on informal farm entrepreneurship development in rural Nigeria

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